Auto owners insurance can be of different type depending upon the need of the car owner. Insurance of the automobile in general is essential for protecting the car from severe damages. Most of the countries have laws that make auto owners insurance compulsory for all kinds of automobiles. The transport department of a region sets some minimum insurance coverage that every automobile must have to ply on the public roads. An automobile running without insurance is considered as an offence in many countries.
Depending upon the need of the customer the insurance companies have devised the following types of auto owner’s insurance policies:
Comprehensive auto insurance policy
This is the most popular and the most expensive car insurance policy. As the name suggests fully comprehensive car insurance policy covers all aspects of insurance and provides coverage from damage caused by accident to that caused by theft and vandalism. Most of the automobile finance companies make it compulsory for the car owners to purchase this type of automobile owner’s insurance.
The best part of this kind of insurance policy is that an insurer can claim the insurance amount without having to prove any “fault”. But there are companies that do not provide 100% insurance. A car insurer should always bargain for a higher insurance rate before making a deal.
Third party insurance
This is the most fundamental type of automobile owner’s insurance policy where an insurer who is at fault in hitting a third party or causing any kind of accident is able to claim insurance. The insurance company is not liable to pay for damages caused due to vandalism or theft.
This is the cheapest insurance policy and as such is suitable to insure old cars that have very less value at present.
Third party fire and theft insurance
This automobile owners insurance policy covers all the facets of comprehensive insurance except for the fact that insurance is provided only when the owner is at fault in causing damages or hitting a third party.
This insurance policy is suitable for cars that are not very old and still have some mileage left. These are not very expensive and preferred by many car owners.
Specific automobile owner’s insurance
These are specialized insurance policies that cover particular damages or facets. For example auto collision insurance is meant to cover the damages caused by road accidents. Vandalism and theft does not get covered by this insurance. There is also the classic insurance policy in which old cars get insured and some beneficial discounts are also provided.
