Facts About Auto Insurance That You Should Know

September 4, 2017 · Posted in General Articles on Car Insurance 

If you are planning to learn to drive a car, you should also take care of the aspect of auto insurance. Before taking up driving a car, it is apt that you should know various aspects of insurance laws and what has to be done in this regard.

As far as the US is concerned, all vehicles on the road should have complete insurance support. If there are instances where vehicles are present on the road without auto insurance, the owner can face serious penalties and the vehicle can get impounded.

What are the different kinds of policies of auto insurance? There are different kinds of insurance policies which you can avail based on the kind of car, the make and the model and also the paying capacity of the vehicle owner. One of the types is third party auto insurance with the other type being comprehensive insurance policy.

As far as the comprehensive policy is concerned, not only the vehicle and the driver is covered, but also people on the road and public property are covered in case there is any untoward event. There is a great deal of safety in this policy as it reduces the financial burden if an accident were to occur.

With the comprehensive insurance policy, the premium is quite high and if there are no accidents on a year on year basis, there are also some no claim bonuses that the owner of the vehicle can claim. As years pass by, the vehicle price gets depreciated the comprehensive auto insurance ensures that the premium is lower with the benefit of non claim bonus.

A third party insurance policy does not cover the vehicle or the owner, but public property on the road, other occupants in the vehicle and the man on the road too are compensated in the event of an accident.

The premium burden on third party insurance policies is low and this is the minimum expectation of the law that the vehicle on the road must be at least covered by a third party auto insurance policy. Though there are no advantages recurring in the case of this type of policy, unlike a comprehensive policy, the premium amount is so low that this policy is not only affordable, it is also the most popular policy available today.

The best way to seek an insurance coverage for your car is the internet. Almost all the insurance companies have their sites and by visiting some of the reputed insurance company’s websites, you can get a free spot insurance quote for your vehicle making it easier for you to choose your type of insurance.

 

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