We all know it – you own a car, you must get car insurance. This applies not only to cars, but to other vehicles as well such as trucks, motorcycles, and the like. So you ask advice from friends, and most typically search online and compare quotes… and are astounded by the exorbitant premium charges! You probably felt cheated or robbed for having to pay such a large amount.
There are many factors that affect how much auto insurance companies charge people, and no matter how high the price tag is for that indemnity deal, most people have no choice but to lay the money on the table. Many would then jump at the chance of getting cheaper car indemnity. Still, many people wonder – is the quality of the car indemnity sacrificed depending on how expensive or low cost it is?
To answer that question, we must first know some basics: vehicle indemnity may cover: the insured party, the insured vehicle, third parties (vehicle and passengers), and third party (damaged through fire and theft). Sometimes, coverage may include injured passengers riding in the insured vehicle without regard to fault in the traffic accident.
One type of car indemnity policy is the “Fully Comprehensive Car Insurance” or “Fully Comp”. Although the term causes some misconceptions (as there are actually some exclusions in the policy), it offers by far the widest coverage. In other words, all the items enumerated in the previous paragraph are covered. The definite advantage of this type of policy is that you are fully protected from financial repercussions in case of accidents.
The only drawback is that the Fully Comp is the most expensive type of policy. So if you plan on getting this for your car, expect to pay an exorbitant amount
On the other end of the financial range is what is called the “Third Party Insurance Coverage”. Most states require every car-owner and / or driver to at least get it. It is also called the “basic policy” and is the cheapest type of policy.
The disadvantage of this, of course, is that you get very limited coverage. To be specific, you get coverage only when involved in these three situations: (1) when you had an accident, (2) when you are at fault as the driver, and (3) when you hit a third party.
Having known these facts, the question people always ask next is “Is it possible to get low cost car insurance and still be able to have wide coverage?”
Don’t panic… some people testify that it is indeed possible to cut back on expenses! You may want to check online for tips on how to get discounts.