Insurance for Cars Car owners take auto insurance policies to cover their cars against accidents or theft. The level of cover that you get from an auto insurance company depends on what you choose. Things covered by auto insurance range from damage to the car and passengers in an accident to theft of the car. In most states there is a minimum insurance cover required and therefore getting an auto insurance becomes mandatory. According to your choice of what you would like the insurance to cover, there are several auto insurance policies to choose from. Some of the different auto insurance policies available to car owners include third party or liability auto insurance and full or comprehensive auto insurance. The minimum level of insurance that car owners can get from auto insurance companies is the third party or liability auto insurance cover. For auto insurance covers, this is the most basic. When a third party insurance policy holder is involved in a car accident and it is proven that it was their fault, their auto insurance company will pay for damages to the other party in the accident. Third party insurance cover is usually set and agreed on beforehand. The maximum amount that can be paid by the auto insurance company in case of an accident is set when signing up for the cover. It is prudent for the policy holder to know what the insurance covers and maximum limit for payout in an accident. Covers that charge very low premiums might provide very minimal a cover that is not realistic. In most states, car owners will be required to have a minimum cover which is the third party insurance in most cases. Comprehensive auto insurance is another cover provided by auto insurance companies. This policy covers your car comprehensively as the name suggests. The repair of your car will be paid for by the insurance company if your car is in an accident. The final word on the amount to be paid out in case of an accident rests with the insurance company. Although the limits for amounts to be paid out in an accident are higher for comprehensive insurance, there are maximums just like in third party insurance. A comprehensive auto insurance is not mandatory in most states and some car owners choose not to have it.
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Medical and personal injury protection insurance is another type of auto insurance. The medical expenses of the passengers and the driver of the car are paid for by the insurance if you have this cover. In some countries or states, having this cover is a minimum requirement.
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The minimum legal requirements should be met by whatever auto insurance cover you choose. Recreation vehicles have their different insurance.