Insurance for Cars 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. 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. Auto insurance policies available for car owners to choose from include third party or liability auto insurance and comprehensive or full auto insurance. Third party or liability auto insurance is considered to be the lowest insurance cover that is offered by auto insurance companies. For auto insurance covers, this is the most basic. An auto insurance company will pay the damages of an accident to the other party in an accident if it is proven that their customer was at fault in the occurrence of the accident. Third party insurance cover is usually set and agreed on beforehand. The maximum amount that can be paid by the auto insurance company in case of an accident is set when signing up for the cover. It is prudent for the policy holder to know what the insurance covers and maximum limit for payout in an accident. Some insurance companies charge you very low premiums but the cover they provide is small and at times unrealistic. As the minimum level of auto insurance, the third party insurance is mandatory in most states which require a minimum insurance cover. Another auto insurance policy provided by insurance companies is the comprehensive auto insurance. Comprehensive auto insurance policy fully covers your car, just like its name suggests. The repair of your car will be paid for by the insurance company if your car is in an accident. The final word on the amount to be paid out in case of an accident rests with the insurance company. Just like in third party insurance cover, insurance companies also set limits for the amount that can be paid out, although the limits in comprehensive auto insurance are higher. Unlike third party insurance, comprehensive insurance is not mandatory in most states.
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There are other kinds of auto insurance like the medical and personal injury protection cover. The medical expenses of the passengers and the driver of the car are paid for by the insurance if you have this cover. In some countries or states, having this cover is a minimum requirement.
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Regardless of your insurance cover, make sure it meets the legal requirement. Insurance for recreation vehicles is different from auto insurance.