Car owners take auto insurance policies to cover their cars against accidents or theft. The level of cover that you get from an auto insurance company depends on what you choose. Things covered by auto insurance range from damage to the car and passengers in an accident to theft of the car. Legal requirements in some states make it mandatory for car owners to have some minimum level of auto insurance cover. According to your choice of what you would like the insurance to cover, there are several auto insurance policies to choose from. Some of the different auto insurance policies available to car owners include third party or liability auto insurance and full or comprehensive auto insurance.
The minimum level of insurance that car owners can get from auto insurance companies is the third party or liability auto insurance cover. It is the most basic auto insurance cover. In case a third party insurance policy holder is involved an accident and it is proven that it was their fault, their auto insurance company pays damages to the other party. This policy sets insurance cover payout amount in advance Normally the maximum amount that can paid for a third party cover in case of an emergency are set in advance. It is therefore important to know what the payout limits are and what the insurance covers. Covers that charge very low premiums might provide very minimal a cover that is not realistic. A minimum cover is mandatory in most states, this is mostly third party insurance.
Another auto insurance policy provided by insurance companies is the comprehensive auto insurance. 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. Unlike third party insurance, comprehensive insurance is not mandatory in most states.
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There are other kinds of auto insurance like the medical and personal injury protection cover. This type of cover pays the medical expenses of the driver and the passengers in case of an accident. This cover is a minimum requirement in some states
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Regardless of your insurance cover, make sure it meets the legal requirement. Recreation vehicles have their different insurance.