Insurance companies provide auto insurance against accidents to car owners. The level of cover that you get from an auto insurance company depends on what you choose. Auto insurance can cover damages to the car, passengers in case of an accident or even when the car is stolen. Legal requirements in some states make it mandatory for car owners to have some minimum level of auto insurance cover. 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.
Third party or liability auto insurance is considered to be the lowest insurance cover that is offered by auto insurance companies. It is the most basic auto insurance cover. 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. 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. The policyholder should confirm what the insurance covers and what the limits per accident will be. A policy may be attractive because it charges low premiums, but it provides a minimal cover that is not practical. As the minimum level of auto insurance, the third party insurance is mandatory in most states which require a minimum insurance cover.
Auto insurance companies also provide a comprehensive auto insurance policy. This policy covers your car comprehensively as the name suggests. If your car is involved in an accident, the auto insurance company will pay for the car or its repair. In an accident, it is the insurance company that decides how much money will be paid out. 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. A comprehensive auto insurance is not mandatory in most states and some car owners choose not to have it.
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Medical and personal injury protection insurance is another type of auto insurance. This type of cover pays the medical expenses of the driver and the passengers in case of an accident. In some states this cover is a minimum requirement.
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Whatever auto insurance cover you settle for ensure that it meets the minimum legal requirements. For a recreation vehicle you will need an insurance different from auto insurance.