WHAT TYPE OF CAR INSURANCE SHOULD I BUY?

By law, insurance coverage is required before driving. If you happen to have an accident while not covered, all the damages from an accident need to be paid for. With no insurance, the cost and headache you will cause yourself is not worth it. Shopping around for a car insurance policy is still easier than the aggravation caused by not having proper coverage.

Shopping around is easier than ever before. Between the phone and the internet, people do not need to drive to every office and speak to an insurer in person anymore. There are even websites that can give a quote for numerous companies all at the same time! The number one thing is to get the car insurance coverage that best fits your individual needs. Saving money on your premium is always an option, but not when it means having less coverage than you should. Never lie about anything including your age or past driving tickets. When the insurance company finds out you lied, they will drop your policy.

Third Party Only coverage is the least expensive of insurance policies. When you buy this, it will protect passengers and the other car driver. This is the basic form of car insurance that allows people to drive legally. Damages caused by other drivers are covered; damages to your own car by you are not covered. With the basic third party only insurance plan, theft and fire are NOT covered.

The option with third party coverage is fire and theft. A stolen car or a car that catches on fire are now insured, as this option covers the driver for replacement value of your car.

The last option is called Fully Comprehensive insurance. Many new vehicles require this coverage, especially if it is being leased or financed through a particular bank. This plan covers everything, no matter who caused the accident. Most insurance companies will pay for the costs of the repairs. For older car owners, this plan may not be worth the premium costs to insure.

Sometimes legal coverage is added onto plans as well. This allows the driver to go after any losses or additional damages they want to pursue from the other driver. If you opt for legal coverage, the insurance company will pay the legal counsel to fight for your compensation if you are hurt. Legal coverage does increase your policy’s premium and each individual driver has to decide if it is necessary to them.