The cost of your auto insurance purely depends on the type of auto insurance you buy. Therefore it is very important for you to understand the different types of auto insurance policies available. In this article we discuss the different options available in auto insurance.
One type of auto insurance is the Fully Comprehensive Auto Insurance. It is also the most expensive policy but also the most common type of policy available for your auto. Most of the finance companies that finance you for buying your car make it compulsory for the owner to get his vehicle insured completely. This kind of insurance covers you against all events ranging from accidents to theft. The advantage of this policy is that you do not have to prove a ‘fault’ to make a claim. But many insurance agencies offer only a reimbursement of eighty per cent rather than a complete hundred percent insurance. Thus, you must go through your insurance policy very carefully.
Third party, fire and theft auto car insurance is another type. It is mostly used by those who have already paid their car loans to the company but still have certain amount of intrinsic value left in their cars. This also covers most of the events of a pay-out like accident, theft, etc. but in this policy the company is liable to cover you only in case you are at fault in an accident with another car. It will not pay you if you hit your car against a wall. One disadvantage of this policy is that it will not protect you against any damages in an accident if you are not at fault regardless of the fact if the other driver at fault is insured or not.
One of the most basic type of auto insurance policy is the Third party insurance and only gives you coverage in events of accident due to your own fault and hit a third party. Because of this limited service, this policy is also the cheapest of all the types. People who purchase this policy are mostly those whose cars have got old and do not posses any intrinsic value.
Lastly is the Specialized Car Insurance. If any car is above twenty five years old, it falls under the category of a classic car. Thus this type of a car must be insured under such policy that provides all the benefits required for maintaining a classic car. Though it has all the advantages of a comprehensive insurance policy, it has a limited number of miles your car can travel.
