Auto insurance coverage is regulated by the law in the United States of America. It is illegal to drive without auto insurance in almost all parts of the country. There are a lot of options that one can choose from based on his or her financial situation. The best way to go about getting insurance coverage is to look for it over the internet.
First party or fully comprehensive auto insurance:
The most popular type of auto insurance coverage is first party or fully comprehensive automobile insurance. The first party auto insurance policy gives the policy holder the maximum amount of flexibility when compared to any other type of policy. The only downside is that this type of policy is very expensive to purchase.
First party insurance will reimburse you even when you are not the party at fault. It will also protect you in case you have an accident along with a person who does not own insurance or even if you crash your car against a tree or pole or any other inanimate object which is not insured.
The benefit of this insurance policy is that you do not have to show fault in order to claim for damages. If you can afford it, you must definitely go for first party of fully comprehensive auto insurance. This is because it is a no nonsense policy which will protect you with the least number of hassles, thus saving you both time and money in the event of an accident. In fact an all frills policy would even include tort option coverage and medical benefits.
Tort option coverage gives you coverage for fighting auto related accidents in court and thus indemnifies you against legal fees and other litigation related expenditure. And medical benefits are an added medical coverage which takes care of post trauma care.
Second party auto insurance:
Second party auto insurance coverage or fire and theft policy is the sort of insurance policy which will give coverage only when you are the party at fault. But apart from this, it will also reimburse you for any losses sustained due to fires or robbery. This also includes acts of vandalism and any other natural disasters like floods, earthquakes and tornadoes. It is a sort of a midway policy between first party and third party auto insurance.
Third party auto insurance:
Third party insurance is the cheapest kind of insurance policy that you can get. In this type of insurance policy, it is required that you show fault in order to claim for your damages. You cannot claim for damages in case you have met with an accident with a tree or a pole or anything which does not have insurance. In other words, the only situation where your insurance company will pay you money is when you are the party at fault, Or if you are the individual who has caused the accident in the first place.
Classic car or sports car insurance:
There are also other types of less common auto insurance policies like classic car or sports car or vintage car auto insurance. In this type of insurance policy, the customer is allowed to make the decision as to how much his car is to be valued at. In other words, the emotional value of the car is ascertained by the customer himself. And all this flexibility will obviously cost a lot more than conventional auto insurance.