We're living in the world where there are plenty of options to choose from no matter what product or service we are looking forward to buy. Whether it's a simple kitchen device such a fridge or a costly service like insurance for your vehicle there are many different types of this thing each serving its purpose. And depending on your personal needs you can get either an adequate service or a source of frustration. That's especially important when dealing with such a widespread service as car insurance. Depending on the type of policy you get for your car this service can be either overpriced or really cheap. So before buying anything make sure you know the main types of vehicle insurance and their exact purpose.
Third party
This type of insurance is the simplest one you can get for your vehicle as it carries the least coverage. In fact third party insurance policies carry only third party liability coverage, which is the only mandatory type of coverage in all states. It pays only for the damage and injuries inflicted to the third party in course of an accident where you were at fault. Because of the minimalistic character third party policies are the cheapest on the market if compared to other policy types. However, this cheap auto insurance will only suit those who drive used cars with virtually no market value to them and that don't require additional coverage options.
Third party, fire and theft
Third party, fire and theft is an advanced version of the simple third party vehicle insurance. As the name suggests it includes additional types of coverage besides the mandatory third party liability coverage. With this type of policy you will get financial coverage in cases of fire, theft and similar damage to your vehicle. Being a very common type of peril most vehicles are likely to get affected by both fire and theft coverage add up to the cost of the policy if compared to simple third party coverage. This type of policies will appeal to those who still have significant market value on their vehicles but have already paid off their loans.
Fully comprehensive
Fully comprehensive policies are the most expensive yet the most widespread type of vehicle insurance in the United States. This paradox is explained by the simple fact that fully comprehensive policies are a requirement when getting and auto loan. And knowing how many people use auto loans to finance their new cars it becomes evident why the most expensive type of policies is the most popular too. The good news about fully comprehensive car insurance is that it provides virtually all kinds of coverage and you don't have to be at fault to receive them after an accident. As already mentioned this type of insurance is aimed at those who use auto loans to finance their vehicles and will also suit those who want to get the broadest set of coverage available.
As you see there's something to choose from. Whether you want to get cheap auto insurance or the largest set of coverage - there are policies that will suit your needs. But you also have to bear in mind that policies differ in rates and you can get a big coverage pack for a lower price and the simplest policy with an expensive price tag. So it's always recommended to shop around no matter what type of policy you're looking for.
Third party
This type of insurance is the simplest one you can get for your vehicle as it carries the least coverage. In fact third party insurance policies carry only third party liability coverage, which is the only mandatory type of coverage in all states. It pays only for the damage and injuries inflicted to the third party in course of an accident where you were at fault. Because of the minimalistic character third party policies are the cheapest on the market if compared to other policy types. However, this cheap auto insurance will only suit those who drive used cars with virtually no market value to them and that don't require additional coverage options.
Third party, fire and theft
Third party, fire and theft is an advanced version of the simple third party vehicle insurance. As the name suggests it includes additional types of coverage besides the mandatory third party liability coverage. With this type of policy you will get financial coverage in cases of fire, theft and similar damage to your vehicle. Being a very common type of peril most vehicles are likely to get affected by both fire and theft coverage add up to the cost of the policy if compared to simple third party coverage. This type of policies will appeal to those who still have significant market value on their vehicles but have already paid off their loans.
Fully comprehensive
Fully comprehensive policies are the most expensive yet the most widespread type of vehicle insurance in the United States. This paradox is explained by the simple fact that fully comprehensive policies are a requirement when getting and auto loan. And knowing how many people use auto loans to finance their new cars it becomes evident why the most expensive type of policies is the most popular too. The good news about fully comprehensive car insurance is that it provides virtually all kinds of coverage and you don't have to be at fault to receive them after an accident. As already mentioned this type of insurance is aimed at those who use auto loans to finance their vehicles and will also suit those who want to get the broadest set of coverage available.
As you see there's something to choose from. Whether you want to get cheap auto insurance or the largest set of coverage - there are policies that will suit your needs. But you also have to bear in mind that policies differ in rates and you can get a big coverage pack for a lower price and the simplest policy with an expensive price tag. So it's always recommended to shop around no matter what type of policy you're looking for.
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