Type of car insurance.

Type of car insurance.

By law, everyone who drives a car needs to have car insurance. To purchase car insurance, you need to purchase insurance contract from insurance company. The premium you pay depends on many factors, such as age, gender, car manufacturer, model, year. When looking for insurance contracts that provide adequate compensation, it is important to understand the types of automobile insurance policies available. So, what kind of car insurance options are available?

Completely inclusive car insurance

Completely inclusive car insurance is undoubtedly the most expensive. However, it is probably also the most common type of car insurance, as many vehicles raise funds from finance companies. Finance companies require that owners fully guarantee their cars.

In short, as its name suggests, fully comprehensive car insurance guarantees all kinds of events to car owners from accident to car theft. The advantage of this type of insurance is that you do not have to show "defects" to claim. Therefore, if you have an accident that is not your responsibility and you are the owner of another vehicle, you can not let you know the details of your insurance. To make matters worse, you can not join an insurance company. Likewise, if your car is stolen, fully comprehensive insurance will allow you to claim to the insurance company.

But carefully read your insurance contracts so that most car insurance companies refuse to guarantee 100% of the car's value and instead only guarantee about 80% of its value. Car insurance companies argue that by doing this, the owner of the car no longer wants the car or prevents unauthorized loss of automobiles encountering financial difficulties.

Third party, fire & theft

Third party, fire & theft auto insurance is already in the middle of a popular road car insurance package for those who are paying car loans but have a certain level of intrinsic value to the car.

This type of car insurance covers most of payment events that are subject to completely comprehensive car insurance, such as fire and theft. However, in the event of an accident, the insurance company will be required to pay only if you are wrong and you hit another car. Therefore, if you hit the wall or damage the car, the insurance company does not have to pay. Likewise, if you are involved in an accident in another car and are not mistaken, your insurance company, regardless of whether you are paying enough premiums for your damages, the car.

Third party insurance

Third party insurance is a "basic" type of insurance, covering only if you are involved in an accident, have negligence, and hit a third party. For all other events, car insurance companies do not need to make payment. As such, it is the cheapest type of auto insurance you can purchase. In other words, this type of insurance is usually purchased only by the owner of the car holding the old car of no value.

Specialized car insurance

Finally, strictly speaking, cars over the age of 25 are considered "classic". Therefore, this type of car should be guaranteed as a classic car with all such advantages and demands. "Classic" car insurance usually has all the advantages of fully comprehensive car insurance, but one serious drawback of classic car insurance is that you usually have a certain year It is limited to the number of road miles you can drive to. Carefully your policy.