We, car insurance assist, knew that people just hate the idea of making payment to car insurance premium. We also, but, whether you like it or not, car insurance or also known as auto insurance policy is a necessity if you drive and it is made compulsory by law. Of course, there are ways that you can get around to pay cheaper rate and lower cost, which we outline in some of our archive articles by buying a cheap car insurance policy. So, it shouldn’t be too big a financial burden to you.
Today, in this article, we are going to talk about the various types of auto insurance available and hope that this will give you some ideas and insight about what car insurance is about.
Types of Auto Insurance
Essentially, there are three main types of auto insurance available. Each type of car insurance provides different coverages and comes at a different cost.
- 'Third Party Only' Auto Insurance
This auto insurance policy is the simplest of all. This policy will provide only the minimal coverage. It covers only third party related damage, be it injury, vehicle or property.
Give you an example, if you are involved in an accident and the other part’s vehicle is damaged or the other driver or passenger got injury, the policy will cover the cost. But, if you are injury or your car is damage, then, you are not allowed to claim against the policy.
Also, if you car is being stolen or set on fire due to whatever reason, you are also not covered.
So, in our opinion, this auto insurance is actually not good as your are exposed to certain risks. - 'Third Party Fire and Theft' Auto Insurance
This auto insurance policy is slightly better than the previous one. It provide exactly the same coverage as mentioned in above with an addition. If your car is stolen or set on fire, yes, you are covered. - 'Fully Comprehensive' Auto Insurance
The most complete auto insurance of the 3 type. This auto insurance policy provide all the coverage mentioned in the above 2 types and also, it will provide coverage for damages to your own car and as well as injury cost.
So, in summary, it is advisable to buy the fully comprehensive auto insurance policy because it provides the fullest coverage for you and fellow road users.
You might also be interested to read more about two other types of auto insurance, namely, car rental insurance and non-owned auto insurance.
For more assistance on car insurance matters, please check out all our archives.
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Los Angeles Auto Insurance