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Basically, there are three general types of automobile insurance. We will look at each one of these in turn. Fully comprehensive auto insurance: as the name implies, fully comprehensive policies cover vehicles and their drivers in the event of theft or accidental damage. It does not matter whether or not the driver was at fault or not, whether the other driver was insured or even if they were not able to get any information about the other driver in the event that the other motorist fled the scene. Fully comprehensive policies are the ones that are generally required to be taken out for cars that have been leased and cars that have not yet been fully paid for. Third party insurance offers the next level of insurance coverage. Drivers who opt for third party, fire and theft coverage get remuneration if their cars are damaged by fire or are stolen. In the event of an accident, however, these drivers are only covered if they are the ones who cause an accident. They will not get coverage for damage to their car, but only to damage to the other car of the other driver. Nor will they be covered if the other driver is at fault or does not have insurance. Next there is what is called simple third party insurance. This is the cheapest and most basic insurance you can buy. All this insurance covers is instances when you, the driver are the one who causes an accident with another vehicle. While this type of insurance is very cheap, if you do have an accident and it is your fault or if your car is stolen, you will have to pay out a great deal of money. Therefore, it is the riskiest insurance policy of all. Next on the list is liability insurance or personal liability insurance. This type of auto insurance pays money out on your behalf if you either injure somebody while you are driving or damage property. This is very important because in cases of property damage or injury, the costs can be crippling to you if you do not have insurance to cover you. Note too that there will be limits set to how much the company that insures you will pay. Be sure you know what those limits are before you decide on your policy. What sounds like a good deal on one of these policies may not be so good if they do not offer a very substantial amount as their upper limit. Now that you are armed with some information, it is time to start comparing prices. Remember, drivers of different ages and with different driving records will pay different amounts for their insurance. Be sure to get all the facts before you make your final decision.
Article Source: http://www.bharatbhasha.net Article Url: http://www.bharatbhasha.net/finance-and-business.php/217075 Article Added on Saturday, February 20, 2010 LD
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