Car Smarts – What Are The Types Of Auto Insurance You Can Avail?
You cannot neglect car insurance; it has been a requirement since the 19th century that anyone who drives a motor vehicle have some measure of coverage before the automobile can be taken out on the road. To help you out in thinking about the auto insurance you can choose to take out, here are insurance policies and their coverage.
1. Third party only
This type of insurance, also known as the TPO is the most basic insurance you can get. Sometimes, if you opt not to get your own auto insurance, the state government will require you to purchase your insurance from them. This means you will be paying up to $500 for the third party insurance. The TPO covers you on legal expenses, emergency treatment, injuries and damages incurred by an innocent third party. If you cause an accident, then TPO protects you from charges and will insure you against paying for the damages and injuries to the other party. The disadvantage of this type of basic coverage is that it would not cover other eventualities happening to your vehicle such as fire damage or theft, or even the repairs you need to get after an accident occurs. Generally, if you own a worn out and dilapidated old or used car, you might choose this type of policy as it is the cheapest you can get. Failing to purchase any type of insurance can cost you a lot of money in fees and even possible jail time.
2. Another type of insurance that can cover you better than the TPO is the Third party plus fire and theft insurance. It is a bit more comprehensive than the first as it covers you for fire, lightning, explosion, attempted theft and actual theft, or when someone takes your car without permission from you. This type of insurance also covers storage, towing, and all your car accoutrements. Additionally, you get reimbursed for any expenses you will incur if you were the one who caused the accident. Usually, a vehicle owner purchases this type of insurance if they have already completed their auto loans but still regard their cars as a prime commodity.
3. Comprehensive coverage is what you should get if you have a high maintenance type of vehicle with costly parts and services fees. This type of policy covers everything that the previous two mention and everything else that the two do not cover. The comprehensive type of insurance covers medical expenses, death, storm, flood, vandalism, malicious damage, and accidental damage (including scratches incurred because of one night of bad driving on your part), and personal things you leave inside your vehicle. Of course, the comprehensive type of insurance is the most expensive but it is infinitely more rewarding than the first two.
If you think about it, it would be best to purchase the comprehensive type of insurance as long as your financial standing can afford to. Even wear and tear on your vehicle would be covered by it meaning you can rest assured that you and your vehicle are both safe.
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