A Guide to Auto Insurance. Insurance companies provide auto insurance against accidents to car owners. Customers get different levels of cover for their cars depending on the auto insurance policy that they choose. Auto insurance covers injury to passengers, damage to the car and in some the theft of the car. In most states there is a minimum insurance cover required and therefore getting an auto insurance becomes mandatory. According to your choice of what you would like the insurance to cover, there are several 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. Third party 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. Third party insurance cover is usually set and agreed on beforehand. This means that the auto insurance company sets the maximum amount they can pay in an accident beforehand. 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. A minimum cover is mandatory in most states, this is mostly third party insurance. Comprehensive auto insurance is another cover provided by auto insurance companies. As the name suggests, comprehensive insurance covers your car comprehensively. The cost of repairing your car is paid for by the insurance company if you are involved in an accident and your car gets damaged. The insurance company usually decides on the amount that will be paid out in case of an accident. 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. 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 states this cover is a minimum requirement.
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Regardless of your insurance cover, make sure it meets the legal requirement. Recreation vehicles have their different insurance.