These days automobile insurance is the ideal way to go if you want to ensure a long life for your car and a relaxed life for yourself. Although auto insurance policies ensure that the huge amount of money spent on your vehicle remains safe, buying an auto insurance policy is quite expensive. There are, however, different types of auto insurance policies in the market today and it is up to the individualâ€™s discretion as to which policy he can afford to adopt. Four of the available policies are detailed below.
1. Fully comprehensive auto insurance
Although this policy is the most expensive option in the market, it is the most widely adopted variety of auto insurance. The reason being that this type of policy offers compensation for or covers all sorts of cases, such as, auto theft, accidents, wear and tear, etc. For instance, if you were involved in an accident, which was not your fault, and the driver whose fault it was, does not disclose his details and his insurance details, you ought not to worry since the expenses incurred would be taken care of by this particular insurance policy. If you hold the fully comprehensive policy, you can even register a claim against your insurance company.
An important factor that should be kept in mind regarding this policy is that a few auto insurance companies only insure your vehicle for 80% or so of its total value instead of 100%. Although many companies defend this as a measure to prevent fraud, etc, you must try your best to find an agency that insures your vehicle for 100% of its total value.
2. Third party, fire and theft
This type of policy is basically for automobile owners who have paid off their automobile loans, but would yet like to insure their vehicles out of attachment or sentimental value towards it. Although this policy seems similar to the â€˜fully comprehensiveâ€™ policy detailed above, there is an important difference between the two. The difference being that although they both cover cases of fire and theft, in the case of an accident, this particular policy only covers your vehicle in cases where you are at fault and have hit another car. Meaning that if any other vehicle happens to hit yours, or you happen to bang your vehicle against your garage wall, your expenses will not be compensated by the insurance company.
3. Third party insurance
This is the most inexpensive of all available auto insurance policies, and covers only those accident cases in which you were at fault and happened to hit a third party vehicle. The insurance company will not consider paying for any other sort of mishap that occurs. Those who own a comparatively less pricey vehicle usually prefer this policy.
4. Specialized car insurance
This policy is for those cars that are categorized as â€˜classicâ€™, those that are more than twenty five years old. These classic cars usually have their own characteristic required services. The specialized car insurance policy can be said to be as comprehensive as the first type of policy, but the only drawback is that it limits the policyholder to a limited number of miles that the vehicle can be driven for in a given year.
Everything said and done, it is ultimately at the discretion of every individual as to which policy is best suited for him. Before hastily grabbing a policy, it is advisable to figure out oneâ€™s requirements and budget and accordingly to conduct a survey in an attempt to acquire all the necessary information available about the different auto insurance policies available in the market.