Auto insurance is a very important thing to have for all car owners. It has a number of benefits. But it is not just about the benefits; auto insurance is in fact a norm or law in almost all states.
So what are the various types of auto insurance policies available?
Firstly, you must choose your insurance company. There are a number of them to choose from and this is the first major hurdle.
The big national names are obviously the most reliable. They can be trusted because of their size and scale. The only problem will be enforcing your case if and when you meet with an accident where the circumstances are hazy. The big companies have very good lawyers and you might not stand a good chance of winning if you don’t have a solid case. Apart from that you can be rest assured that you will be paid if you are on the right side of the argument.
There are a number of smaller companies. But even though they will give a good deal, you must be wary of fly by night operators.
Then you have to choose the type of auto insurance policy you would like to hold.
The most complete coverage is provided by comprehensive or first party insurance. This ensures that you will be paid under all circumstances. You do not need to be at fault to be paid. Even if you hit a tree, you claim for damages.
There is a mid level insurance called fire and theft comprehensive package. Here you will be paid for damages caused by fires and robbery. But you will not be paid for accidents in which you were not at fault. The same goes for banging your car against a tree.
The cheapest policy is the third party insurance policy. Here you will not be paid for fire and theft damages. Nor will you be paid when you were not at fault. The only case where you can claim damages is when you were the party that caused the accident.
The comprehensive package is usually taken by people who buy a new car or own a car of high value. The third party insurance is fine for older cars with negligible monetary value. Here you are taking insurance just to be on the right side of the law and to ensure that you can pay for damages caused to the other party in case of an accident.
There is also another type of auto insurance called the special antique auto insurance or classic automobile auto insurance. If your car is more than 20 years old, you can go for this type of auto insurance.