Auto insurance covers car owners against accidents or theft of their cars. The level of cover that you get from an auto insurance company depends on what you choose. Auto insurance can cover damages to the car, passengers in case of an accident or even when the car is stolen. Legal requirements in some states make it mandatory for car owners to have some minimum level of auto insurance cover. Depending on what you choose to be covered by the insurance, there are different auto insurance policies to choose from. Auto insurance policies available for car owners to choose from include third party or liability auto insurance and comprehensive or full auto insurance.
Third party or liability auto insurance is considered to be the lowest insurance cover that is offered by auto insurance companies. For auto insurance covers, this is the most basic. An auto insurance company will pay the damages of an accident to the other party in an accident if it is proven that their customer was at fault in the occurrence of the accident. This policy sets insurance cover payout amount in advance The maximum amount that can be paid by the auto insurance company in case of an accident is set when signing up for the cover. It is prudent for the policy holder to know what the insurance covers and maximum limit for payout in an accident. A policy may be attractive because it charges low premiums, but it provides a minimal cover that is not practical. A minimum cover is mandatory in most states, this is mostly third party insurance.
Comprehensive auto insurance is another cover provided by auto insurance companies. Comprehensive auto insurance policy fully covers your car, just like its name suggests. The repair of your car will be paid for by the insurance company if your car is in an accident. The insurance company usually decides on the amount that will be paid out in case of an accident. Just like in third party insurance cover, insurance companies also set limits for the amount that can be paid out, although the limits in comprehensive auto insurance are higher. Comprehensive insurance is usually optional in most states and it is up to the consumer to choose if they need it.
5 Takeaways That I Learned About Options
Other types of auto insurance include the medical and personal injury protection. The medical expenses of the passengers and the driver of the car are paid for by the insurance if you have this cover. In some states this cover is a minimum requirement.
The 10 Commandments of Options And How Learn More
The minimum legal requirements should be met by whatever auto insurance cover you choose. Insurance for recreation vehicles is different from auto insurance.