Auto indemnity is one of the first things that every driver should plan to take. This is simply because of the fact that they can’t just go away with it, as long as they have a car, and would want to drive it without breaking the law. Remember that most, if not all states in the United States of America, requires its driver to have car insurance, in order for them to be able to drive their car legally. In other words, drivers that do not have indemnity while driving are risking to be punished under the law.
In this case, as drivers will be starting to find the proper policy that they will get, it is important for them to decide what kind of auto indemnity are they going to get, whether cheap ones, or expensive ones. Of course, a lot of drivers today would love to have the cheapest rates possible, but it also sacrifices coverage, which gives drivers less protection in case of accidents. Also, the most expensive premiums may give drivers the best protection that they may have, but may also hurt their finances.
In this case, it is then important for drivers to know the pros and the cons of choosing between the cheapest and the most expensive auto indemnity.
The two basic policies that drivers must know, to be able to choose from the cheapest and the most expensive rates are the Fully Comprehensive Car Insurance Policy (the most expensive), and the Third Party Car Insurance (the cheapest one).
The reason why the fully comprehensive policy is the most expensive is because of the fact that it includes the widest coverage, providing drivers the best protection that they can get in case that they are to be involved in vehicular accidents on the road. Remember that one of the most necessary things that every driver must check in their respective policies is their coverage, because it refers to all of the situations wherein the company would be able to give protection and financial assistance.
In the fully comprehensive policy, drivers are insured in almost all kinds of damage to their car, like collision coverage, accidents such as the ones caused by fire, tornado, earthquakes, and even car theft and vandalism. Therefore, drivers are ensured that their car is protected at all times, whatever kind if accident can they encounter while hitting the road. However, it surely comes with a price.
Meanwhile, the third party policy is one of the cheapest kinds of car insurance, and is often the minimum requirement policy for many state governments across the United States. However, the fact about this policy is that it only covers drivers in three specific instances, which are: a. when they are involved in an accident; b. when the driver is at fault in the accident; and c. when the third party is hit by a driver. However, other situations covered under comprehensive policies, like natural disaster, theft or vandalism, is not included.