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Types of Auto Insurance Policy

Updated on March 16, 2011

Auto insurance policies

Types of auto insurance available from automobile companies

Many people do not understand what type of auto insurance policy are available for their choice hence end up buying wrong auto policy thinking that they have got the best.

Below are some types of auto insurance that you need to know

The third party insurance

Also known as liability insurance, offered by almost all auto insurance companies, it is the basic insurance that an automobile insurance company will pay the third party, in simpler terms when you car got an accident and damage another car, auto insurance company will pay the car you have damaged, it is the type of car insurance that the companies held you responsible for causing the damage. The auto insurance company may decide to cover car damage or body injuries; it is your responsibility to find out what you insurance company offers. With the third party insurance, auto insurance company will always limit the payment amount

Collision and comprehensive coverage, comprehensive insurance and full comprehensive insurance

Unlike the third party insurance with collision and comprehensive coverage, the auto company will pay you comprehensively for the damaged caused or any injuries that might have been incurred. So any time you car get involved in an accident and it is badly damaged, your auto insurance company will pay for it repairs. Your car will be repaired at a market value, so your car insurance company will determine the market value and that is what you will receive. With a comprehensive coverage insurance companies will have higher limits of payment.

Medical (MedPay), Persona Injury Protection (PIP) and No Fault Cover

This auto insurance policy enables you and your passenger’s medical expenses to be covered in the event of an accident. The No Fault Cover means that auto insurance company will compensate regardless of who committed the fault. It assures you that whoever boards the car that is covered by the auto insurance company

Uninsured/Underinsured motorists' coverage – being offered by auto insurance companies, and covers you if the person at fault is not insured or is underinsured. Since most people do not get their car for such auto insurance policy, it is safe to have such kind of coverage to protect yourself from uncovered reckless drivers

These are just some auto covers that you will find from various auto insurance companies. Take your time and do due diligence to find out more on what types of auto insurance are available. Remember that internet is a warehouse of information, get more information from other auto insurance companies and brokers, do not be information less on this

Auto Insurance Type

third party car insurance

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    • topwords profile image

      topwords 8 years ago

      Thank for the content.