Types of car insurance

If you have spent a bit of time looking into your car insurance possibilities you probably know that there are different types of car insurance policies you can quote for. And depending on the type you choose the policy can turn out expensive or cheap. But it's not only the price that differs here, so do the contents of each policy type and the things that are covered respectively. So in order to get a policy that will work best for you it's certainly better to learn more about the basic car insurance policy types before doing any comparison shopping. So here they are:

Fully comprehensive

Fully comprehensive car insurance is the most common type of policies in the US because it's part of auto loan requirements. And knowing how many cars are financed through loans in this country there's no surprise about fully comprehensive being so widespread. The main benefit of this policy type is that virtually all types of perils are covered and you don't have to provide proof of your fault in order to file a claim. The downside, however, is that this type of car insurance is the most expensive one. Still, the package really suits new cars so there's no sense in trying to get another type of policy if you've just used a loan to get a new ride.

Third party, fire and theft

This type of car insurance provides less coverage options than fully comprehensive but also costs less. Under this type of policy you get coverage against fire and theft, besides the essential third party liability. It will best suit car owners who have already paid out their auto loans but still have some market value with their vehicles.

Third party

Third party car insurance is definitely the most stripped down policy type and will best suit drivers with used and old cars with little market value on them. With third party car insurance you only get third party liability coverage in cases when you are at fault of the accident. In all other situations this policy type doesn't provide any benefits. However, it's main positive aspect that it's the cheapest car insurance option out there.

Specialized

Specialized car insurance policies are designed to cover special cars, in most cases classic and vintage cars. There are many restrictions with this type of policy including yearly mileage and storage options for the vehicle. But with specialized car insurance you can rest assured that your classic vehicle will be covered to the right extent taking the historic value of the item into consideration.