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Types of auto insurance

There are different types of auto insurance policies available for purchase but most drivers seem to not understand the difference between them. Yet, it can matter a lot what type of insurance you have on your car in different situations. That's why before getting any auto insurance quotes or comparing the policies make sure you know what types of policies are available and what the difference between them is. Why do you need to know that? Because different policy types suit different needs and you certainly want to have a policy that will work best for you, not your neighbor.

Fully comprehensive

This is the most common type of auto insurance policies since it's required by most lending institutions providing auto loans. And taking the number of financed autos on the road it's evident why the most expensive type of auto insurance is so widespread. If not noting the price, fully comprehensive auto insurance is quite beneficial because it covers all sorts of situations when the car gets damage and you don't have to provide a proof of your fault in order to file a claim. This type of auto insurance is best suited for new cars that are financed through a loan.

Third party, fire and theft

This auto insurance type is a stripped down version of fully comprehensive and will suit drivers who have relatively new cars with a significant market value left in them. It still covers you in most events other than direct collision, like fire and theft. Yet in case of a car accident you will only receive coverage if you were at fault. In other situations the coverage won't apply.

Third party

Third party auto insurance is the cheapest and the most stripped down type of policy you can get. It only pays out in case you're involved in an accident with another car and you are at fault. In all other situations there won't be any coverage. It's best to get auto insurance quotes for this type of insurance if you have a used car that has little market value or you want to minimize your costs.

Specialized

Specialized auto insurance deals mostly with retro and classic vehicles that require special coverage options. Usually every specialized policy is tailored to cover a particular car adequately and has a set of restrictions and requirements for the coverage to apply. For example, there's usually a limit on yearly mileage for each car and the vehicle is required to be kept in a garage.

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