A Guide to Auto Insurance.

Auto insurance covers car owners against accidents or theft of their cars. The level of cover that you get from an auto insurance company depends on what you choose. Auto insurance covers injury to passengers, damage to the car and in some the theft of the car. As a legal requirement, it is mandatory for car owners to have a basic insurance policy in most states. Depending on what you choose to be covered by the insurance, there are different 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. Read more great facts on  Life Insurance Collins, click here. 

The minimum level of insurance that car owners can get from auto insurance companies is the third party or liability auto insurance cover. For auto insurance covers, this is the most basic. When a third party insurance policy holder is involved in a car accident and it is proven that it was their fault, their auto insurance company will pay for damages to the other party in the accident. Third party insurance cover is usually set and agreed on beforehand. 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. A policy may be attractive because it charges low premiums, but it provides a minimal cover that is not practical. A minimum cover is mandatory in most states, this is mostly third party insurance. Learn more about insurance here. 

Comprehensive auto insurance is another cover provided by auto insurance companies. Comprehensive auto insurance policy fully covers your car, just like its name suggests. If your car is involved in an accident, the auto insurance company will pay for the car or its repair. The insurance company usually decides on the amount that will be paid out in case of an accident. Comprehensive insurance policies also set maximum amounts that can be paid out in an accident just like in third party insurance but the limits for comprehensive insurance are usually higher. Comprehensive insurance is usually optional in most states and it is up to the consumer to choose if they need it.

Other types of auto insurance include the medical and personal injury protection. The medical expenses of the passengers and the driver of the car are paid for by the insurance if you have this cover. This cover is a minimum requirement in some states

Whatever auto insurance cover you settle for ensure that it meets the minimum legal requirements. Recreation vehicles have their different insurance.