The Three Major Types of Car Insurances

Insuring your car is a necessity. Be it because of the laws or because you really understand the need for car insurance; you need to have a car insurance policy. Before you take up a car insurance policy, you need to know exactly what each type of insurance policy will offer you. This is not that easy as it seems. Sometimes, the insurance agent does not care to explain a great deal about the different plans or explain the one big policy which is a full coverage car insurance just because they want to reach their target. Or otherwise, the user is in a hurry and is not patient enough to listen to the detailed explanations.

In this write-up we will take a look at the major types of car insurance policies. Each type of insurance policy has their own features: areas they would cover, monthly costs, etc. Understanding each of them completely is essential in selecting the type of insurance that will best suit your requirement.

There are mainly three types of car insurances. They are:

• Liability insurance policy – this type of insurance policy is designed mainly to protect you, the driver. The liability insurance policy covers the costs like the medical, lost wages, or other damages that the other parties had to suffer because of the accident. The person responsible for the accident maybe you or might not technically be you. This is also the minimum insurance coverage that you can have as a driver.
• Collision insurance policy –this type of insurance policy covers the costs for the damages caused due to an accidents that involve collision with other cars or even buildings, trees, etc. The costs are covered irrespective of whose end the fault is. This insurance policy might also cover you up for a replacement if the car is labelledcannot be repaired after an accident.
• Comprehensive insurance policy –in this type of insurance policy coverage, the coverage includes replacement of the car itself, if it is stolen or damaged by any other natural disasters.

There are several insurance companies that offer a combination of these three insurance policies under the plan,full coverage car insurance. To know more about this plan, it’s cost, etc. Contact your insurance company. Sit with them for a detailed discussion and see if this policy’s benefits would serve you better.