subject: All About The Different Types Of Car Insurance [print this page] Driving has its own set of risks. Whether one is careful or not, there is always the possibility of getting into an accident. Since we cannot make any predictions on the occurrence of such incidents, it is best to take the next best thing, which is to have the right kind of car insurance to provide the necessary protection and security when one is behind the wheel.
Since each of us drive a different car in varied ways, it is just logical for insurance companies to offer various packages to choose from when looking for a policy. For someone who does not know anything about it, the business can be quite confusing. However, it is easy to learn about it.
There are actually a number of choices for coverage policy shoppers. Here are some of the most basic ones.
1. Comprehensive Policy - A comprehensive coverage speaks for itself well and quite clearly. Basically, it is the kind that can protect a policyholder from all the risks one gets exposed to when driving. These include accidents and the damages they entail and claims and damages on third party's vehicle. This coverage also pays off for cases that involve hijacking and theft as well as damages caused by natural disasters like fire, hailstorms and the likes. There is no insurance policy available to provide for cases when the car breaks down.
2. Coverage for Third Party, Fire and Theft - This policy is designed specifically for instances involving a lost or hijacked vehicle. It provides for fire damages as well as for any third party claims. Since this does not cover for the policyholder when an accident takes place, one should have ample coverage for oneself.
3. Third Party Policy - The policy that provides for third parties who gets to experience the effects of an accident is the cheapest one. At the present, there is the Road Accident Fund that provides assistance for victims of car accidents in cases when the responsible individual does not carry ample a third party coverage. The cars that are involved in the accident are not covered by the policy, so one has to pay for it using his own money.
4. Gap Insurance - If one's vehicle is still being financed and it gets damaged in an accident or worse, stolen, the policy provides for the gap between the payments made by the insurance company and what one owes for the company in getting the car refinanced.
5. Emergency Assistance Policy - This kind of coverage is designed for emergencies such as the car getting towed or having a flat tire. An emergency roadside assistance insurance package is an add-on one can consider having or not at all.
These are the most basic car insurance policies most, if not all, providers are now presenting to their pool of clients. They can be arranged and modified to suit the specific client's needs and wants.
by: Lance Thorington
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