Monday, October 15, 2012

Types of insurance policies and cheap car insurance


Looking for cheap car insurance can sure take a lot of time and make you believe that it’s hard to get. Well, this can be true if you’re looking for a cheap variation of an expensive policy type. That’s right, there are different types of insurance policies available on the market, and depending on which of them you choose the cost of insurance will vary among different amounts of money. That’s why it is crucial to understand the main concepts of basic types of policies and the differences between them if you really want to get adequate and cheap car insurance. Here’s a short description of each basic policy type:


Coverage using third-party liability


The most stripped down policy type features only the essential coverage type you need to legally drive a car in most states. This coverage will pay out only in case of an accident that you’ve caused, and will cover injuries and damage inflicted to the other party. Since this policy type is stripped of any additional options, it’s the cheapest you’ll find on the market.


Coverage using third party, fire and theft


This policy type extends the range of situations when it covers you. Except the usual third party liability, it also features fire and theft coverage to address some of the most common perils a car may be subjected to besides collision. This type usually costs a bit more and will best suit drivers who have either paid out their loan or financed their purchase on their own.


Fully comprehensive insurance coverage


If you’re looking for a policy that has it all, this is it. Fully comprehensive auto insurance policies usually include the entire spectrum of coverage options an insurer is ready to provide you with, and doesn’t require you to be at fault in the accident. Naturally, this policy type will rarely grant you cheap car insurance, since it’s the most expensive you will find. And at the same time, it’s the most common policy type in the USA because lending institutions make it a requirement when giving out an auto loan. Still, you might want to shop around to see if there are more affordable offers on the market.


Opting for specialized coverage


Special car types require special policies that cater to the need of their owners. Such is the case of retro, customized or unique vehicles. These policies are usually expensive due to their limited nature and include various requirements that aren’t featured in any other policy types.



Types of insurance policies and cheap car insurance