The basic types of online auto insurance

Auto insurance online is a must for all those who drive a vehicle. In fact, it’s required by law in most states. There are different kinds of auto insurance policies available in the market that offers different auto insurance coverage. To determine which policy coverage suits you best, you must consider the state laws, your car insurance options, affordability and the kind of vehicle that you are using. However, the first step in choosing an auto insurance policy is to know the basic types of coverage that insurance companies offer.

Basic types of auto insurance coverage

There are 3 basic types of auto insurance coverage.

• Comprehensive Coverage – This coverage provides protection to your vehicle against any damages that are not caused by collision with another car. This policy provides coverage against theft, fire, vandalism, flying objects, collision with animal and natural disasters like windstorm, hail, floods or tornado.

• Collision Coverage – This coverage provides protection to your car when you are involved in an accident caused by collision with another vehicle or object. So if you crash into a wall, a light post or hit another car, this policy will pay you to fix your car. It does not depend on who is at-fault. The insured is entitled to collision benefits regardless of who caused the accident.

• Liability Coverage – There are many states where this is the only coverage required by law for a driver. This coverage pays for all physical injury, medical damages and damage to the property of other people caused by your car if you have been in an accident and is determined to be at-fault. This coverage includes repairing and replacing items that are damaged by your car in the accident. It does not pay for any damages caused to you or your vehicle but pays your legal fees and that of anyone else included in your policy.

Buying an auto insurance policy would be difficult if you do not understand the coverage and conditions of all the policies. It is also important to know your state requirements. So, start by determining your insurance needs before you choose a policy.

An article contributed by Kenneth (USA)