Auto insurance is now the best way to make sure you and your expensive car have a good life. Auto insurance protects the huge amount of money you've spent on your car. On the other hand, auto insurance is also very pricey. But today, there are different kinds of auto insurance policies. It is up to each person to decide which policies he can afford.
- Fully Comprehensive Auto Insurance Policy Types: This is the most expensive type of auto insurance, but it is also the most popular type. This is because the insurance covers a wide range of things, such as theft, accidents, wear, and tear, etc., and pays out money for them. If you get into an accident that wasn't your fault and the other driver doesn't give you information about his or her insurance, you shouldn't worry. You can file an insurance claim against your insurance company if you have a fully comprehensive policy. But one important thing should be kept in mind while following this policy. There are a few auto insurance companies that don't cover the full value of your car. Instead, they cover about 80% of its value. Even though many companies say that their policies are meant to protect them from fraud and other problems, you should still try to find an insurance company that covers your car 100 percent.
- Third-Party, Fire, and Theft Insurance: This type of insurance is mostly for people who have paid off their car loans but still love their car and have a lot of memories with it. This policy is similar to the one that covers everything, but it is not the same as that one. Like the latter the former covers cases of theft, accident, fire, etc. but in the case of an accident you can receive compensation only when you were at fault and had hit another car. So if someone else hits your car or you accidentally hit it in the garage, the insurance company won't help pay for the damage.
- Third-Party Insurance: This is the cheapest insurance, but it only covers accidents in which you were at fault and hit someone else. If anything else goes wrong with your car, you don't need to call the insurance company. Most people who own an old, less expensive car or other vehicle choose this type of insurance.
- Specialized car insurance is for cars that are at least 25 years old and are considered classics. These cars are insured as classics, so they have their own needs and services that go along with that. The classic car insurance policy is just as good as the comprehensive one, but the policyholder is only allowed to drive a certain number of miles per year.
In the end, it's up to each person to decide what policy he wants to follow. Before buying an auto insurance policy, it's best to figure out what you need and how much you can spend, as well as take a look at what's out there.
