Car Insurance Basics and Coverage Levels at a Glance

Car Insurance Basics and Coverage Levels at a Glance - image


Possessing the correct form of car insurance is critical if you hope to remain safe while on the open road. In fact, all drivers are legally required to obtain some type of policy. Not only will this help to avid stiff penalties and fines, but car insurance is critical if you happen to become involved in an accident. This protection will help to compensate any victims as well as providing you with a financial "buffer" in the event that legal action is taken. Still, there are a number of different packages to choose from. This is why it is important to take a look at each in greater detail so that the most appropriate decision can be made when the time is right.


Third-Party Liability

Third-party liability is the most basic form of protection. It is solely meant to provide compensation to anyone who may have suffered injuries or damages as the result of an accident. However, we should not fail to mention here that this type of policy will not apply to the driver. In other words, you will still be liable for all personal medical bills and/or repairs that need to be made to your vehicle. This is the main reason why many drivers choose policies that provide a better level of protection.


Third-Party Liability, Fire and Theft

Besides the amenities mentioned above, this policy upgrade will protect you in the event that your vehicle is stolen or it suffers damage as the result of a fire. Although the rates associated with third-party fire and theft are slightly higher than a basic plan, they may very well be worth it; particularly if you possess an expensive vehicle or you regularly transport valuable materials (such as those associated with a construction job).


Comprehensive Car Insurance Packages

Comprehensive car insurance policies are the most thorough and they tend to offer a host of additional benefits besides the possibilities mentioned above. Not only will you be provided with a greater level of financial protection, but you will often be offered other standard features such as emergency breakdown coverage and roadside assistance. Keep in mind that each package will vary between providers, so it is important to perform a fair amount of research in advance. This brings us to our final point.


How to Find the Best Policy

The first step is to compare different providers in order to determine which policies are the most affordable. Assuming that you have encountered the appropriate firm, always ask these questions:

  • Will my monthly premiums decrease if I maintain a clean driving record?
  • Can I obtain a rebate by paying the total amount in a single lump sum'
  • What types of customer service are available and can I speak with a representative 24 hours a day?
  • Can I choose to switch plans without being forced to renew the entire policy?


Keeping these subjects in mind will help you find the best policy suited for your needs, so never be afraid to ask questions.