Types of auto insurance policies

When comparing different types of auto insurance policies fully comprehensive are definitely the most costly ones. Still, taking the fact that the majority of cars on the road today are financed through loans, fully comprehensive policies are also the most common, because the lenders include them as a requirement when giving out the loan.

To make long things short, fully comprehensive auto insurance policies are designed to protect the vehicle owner against a wide range of possible risk – anything from theft to actual collision. The best part with such policies is that you can get full coverage without having to deal with the “at fault” status, meaning that you can claim against your provider even if the other party is uninsured or your car has been stolen.

On the downside, it's quite common that insurance companies do not provide coverage for the entire value of the car, insuring only about 80% of it instead. This is claimed to be a protection against insurance fraud, still you can't do anything about it if your car is financed through a loan.

Third party, fire and theft

Third party, fire and theft auto insurance policies is quite a popular type of auto insurance with car owners who have already settled their loans but still have some intrinsic value in their vehicle.

This type of auto insurance will cover your vehicle in most situations when fully comprehensive policies apply like in the event of theft or storm. Still, in case of a traffic accident this type of policy will only pay if you were at fault and had a collision with another vehicle. That is if you damage your car, hit a tree or aren't at fault during the accident your company won't pay you anything regardless of how much insurance the other party carries with their policy.

Third party insurance

This type of auto insurance is considered as the ‘basic’ type of policies. Third party insurance covers you only in the event of a collision with another car where you are at fault of the accident. In any other situation your insurance company won't pay anything. This type of auto insurance is the most inexpensive and is very popular with old vehicle owners.

Specialized car insurance

Specialized car insurance will appeal to those who want to cover their classic cars. And taking into account that any car that is older than 25 years is considered a classic car there are plenty of them on the road these days. Specialized policies usually have the same conditions as fully comprehensive policies with only one significant difference – there's usually a limit on the mileage allowed to be driven on the given car.