You never really know about automobile insurance until you fully understand some of the basic and most popular car insurance types out there – from farm bureau car insurance to collision and comprehensive insurance and everything in between.
The next thing to think about after purchasing a car is how to get some car insurance. There are so many coverage types out there that you really have to separate the ones that fit your needs and the ones that simply don’t.
That’s when we get into the picture. We’ll present you all the details you should know about before purchasing insurance for your vehicle to ease your decision making. Here are some of the most common automobile insurance types you can find. So, sit comfortably and read on!
Car Insurance Types – Comprehensive Insurance
When we see something bad happening, we tend to think to ourselves, “Oh, I shouldn’t worry. A thing like this can’t possibly happen to me.” Wrong. We can’t influence the weather nor other people’s behavior nor other individuals in traffic. That’s why someone has come up with this type of insurance. It represents one of the best levels of insurance you can purchase for your vehicle.
As the name itself suggests, it covers a lot of possible events and accidents that may occur. They include damage caused by accidents, third party damage in case you are the individual who is deemed to be at fault, theft, vandalism, and even fire. If you press the brake quick enough so you bump into the car in front or if your vehicle is stolen or if a storm or other bad weather incidents destroys your car, this coverage type has your back.
Car Insurance Types – Collision Insurance
This one is all about a driver getting in an actual accident with another car. Unlike the comprehensive coverage, it doesn’t cover against weather incidents or incidents involving animals or other ‘acts of God’. The collision type pays back the insured driver for their vehicle’s damage when the insured driver is the one who’s to blame.
It usually helps with the expenses regarding the repairing or even replacing the vehicle. What’s more, people often purchase it as an extension to their simple policy.
Car Insurance Types – Uninsured Motorist Insurance
The uninsured motorist insurance is very easy to understand. It’s often teamed up with the under insured motorist insurance, but more about that later. Now, the uninsured insurance provides protection for you as well as your vehicle against other drivers who aren’t insured. With this insurance type, you’re protected against hit-and-run incidents, too.
Car Insurance Types – Underinsured Motorist Insurance
Sometimes just getting the minimum level of automobile insurance just isn’t enough. Individuals want to pay less and that may backfire in some cases. Let’s see why. As we hinted in the uninsured motorist insurance section of this article, the under insured one provides coverage in case the insured driver gets into an accident with another driver who is under insured. That means that their insurance simply cannot pay for all the expenses.
Car Insurance Types – Short-Term Car Insurance
Since life can often become unpredictable, not all people have things sorted out for them. When it comes to driving a car, there are situations when people need the vehicle for a short period of time yet because of their personal protection and the law, they can’t enter it without an automobile insurance.
Luckily, there’s a solution in these cases. It’s called short-term car insurance. This is a type that makes sure the driver of the car is added to the policy of the owner of the car so that they can use it without worrying about getting into trouble. Basically, it can last anything between a day and six months, making a great alternative for those that don’t require full 12-month insurance.
Car Insurance Types – Farm Bureau Car Insurance
Whether it’s for your own vehicle, a business one or someone else’s entirely, this is a type offered by the Farm Bureau agency with the aim of ensuring the safety in different types of situations.
Every state offers its own farm bureau car insurance, thus supporting the locals and their community. You can get a personal insurance, one that covers the expenses after crashes, keeps you and your family safe, covers medical expenses after an unwanted occurrence and so on.
Car Insurance Types – Third Party Car Insurance
If you want the absolute basic automobile insurance, then this is the right one for you. Therefore, it’s legally known to be the minimum coverage for drivers of all ages. This is due to the fact that with it, the third parties, which participate in an accident, are covered.
More precisely, damages to the property of other people, injured passengers in your car when you are to blame for the accident and damages made by a driver added to your policy are all a part of this. Moreover, there’s even a third party, fire, and theft car insurance, which offers an additional protection only when you are innocent and have nothing to do with the damage to yours or someone else’s car.
Car Insurance Types – Liability Car Insurance
Similar to the previous one, this is an insurance that comes into the picture in instances when a driver causes an accident and someone on the other side gets hurt. Thanks to it, all the costs from medical bills to the repairing of the injured person’s automobile are taken care of. This is among the top reasons why it’s mandatory in a lot of states in the United States.
Actually, this type is separated into two components – a bodily injury coverage and property damage coverage. As the names suggest, both of these cover the respective expenses caused by the driver at fault.
Wrapping Up the Car Insurance Types
Phew, those were quite a lot of types and coverage available for purchasing. As you can see, they’re all similar and yet very, very different if you want to compare them. We suggest you do just that – sit down and write what type covers what as well as all the pros and cons. Each type covers against a different set of incidents. Plus, the amount you have to pay also varies. So, choose wisely.