Insurance companies provide auto insurance against accidents to car owners. Depending on their choices, customers get different levels of cover from auto insurance companies. Auto insurance can cover damages to the car, passengers in case of an accident or even when the car is stolen. As a legal requirement, it is mandatory for car owners to have a basic insurance policy in most states. According to your choice of what you would like the insurance to cover, there are several auto insurance policies to choose from. Third party or liability auto insurance and comprehensive or full auto insurance are some of the auto insurance covers available for car owners.
Auto insurance companies offer the third party liability insurance as the lowest auto insurance cover. Third party is the most basic auto insurance cover. 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. Third party insurance cover is usually set and agreed on beforehand. Normally the maximum amount that can paid for a third party cover in case of an emergency are set in advance. It is prudent for the policy holder to know what the insurance covers and maximum limit for payout in an accident. Covers that charge very low premiums might provide very minimal a cover that is not realistic. As the minimum level of auto insurance, the third party insurance is mandatory in most states which require a minimum insurance cover.
Comprehensive auto insurance is another cover provided by auto insurance companies. As the name suggests, comprehensive insurance covers your car comprehensively. The repair of your car will be paid for by the insurance company if your car is in an accident. The final word on the amount to be paid out in case of an accident rests with the insurance company. Although the limits for amounts to be paid out in an accident are higher for comprehensive insurance, there are maximums just like in third party insurance. Comprehensive insurance is usually optional in most states and it is up to the consumer to choose if they need it.
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Medical and personal injury protection insurance is another type of auto insurance. 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 countries or states, having this cover is a minimum requirement.
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Regardless of your insurance cover, make sure it meets the legal requirement. For a recreation vehicle you will need an insurance different from auto insurance.