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The Different Types of Car Insurance


Some people find the topic of car indemnity a little arcane. However, having coverage is extremely important. First, coverage is required by law. Second, it is valuable because it protects you and your loved ones when you’re driving. It is the safety net you fall back on if an accident occurs. It is also what will save you from bankruptcy if massive losses need to be paid for.

There are four major types of car indemnity. These are: Full Comprehensive; Third Party, Fire, and Theft; Third Party; and Specialized Car Insurance. Full Comprehensive coverage is the most expensive type of policy. This is the type of coverage often locked up on cars shouldered by finance companies. Fully comprehensive premiums can protect your car from any likely event, which includes collisions and theft. It may be wise to go over your policy to check if the entire value of your vehicle is fully covered.

Full comprehensive coverage also allows one to file against the indemnity company without having to demonstrate “fault.” If you are not at fault during an accident, but the offending party refuses to share their indemnity information or are uninsured, you can still file claims. Also, if your vehicle has been stolen, you may also file against the insurer. You can compare car indemnity quotes for free online to find reasonable premiums.

Third Party, Fire, and Theft car insurance cover most events, but require claimants to show “fault.” This type of coverage is often used if the car itself has some intrinsic value even after car payments have been made in full. Unlike fully comprehensive policies, the indemnity company is only obligated to pay you if you have been found responsible for an encounter. The party at fault will have to cover your damages, regardless if their coverage plan can afford to.

Third Party insurance is the cheapest type of policy, which covers only accidents where you are at fault and have hit another vehicle. All other encounters, such as theft, will not require the insurers to pay. You can look at different quotes to find the best car indemnity for your vehicle.

The fourth type of policy is called Specialized Car Insurance. It is often purchased for “classic” cars or vehicles that are older than 25 years. This policy has the same level of coverage as Fully Comprehensive packages, but restricts the number of miles the car can be driven each year.

There are services online that compare car indemnity quotes for free. It might be a good idea to scope these out for more affordable coverage.