Vibrant market, innovative products and companies ensure that motorists have plenty choices in terms of policies. And every owner would have different requirements, budget and circumstances and they would look for coverage to meet their needs. You would assume that everyone makes an informed decision and choose the best option. But this is not the case in real life.
It is difficult to say one package can serve better than the other when there are so many variations. And it would depend on how a motorist feels about insuring automobiles. However, you should try to predict possible losses you may suffer as a result of owning and driving your auto.
Depending on your circumstances you may choose to leave out some covers and buy the essential part. Your budget and savings in the back can help you determine what an acceptable risk to keep in house is and how much protection you should seek. Here are some of the commonly sold policy types.
Liabilities Only Coverage
Many motorists may not have the means to pay for high premiums. Also, they may not feel the need to spend the money. However, it is a requirement of driving cars that you should at least insure for damages and injuries you cause to other people.
As these are bare bone policies and you have to buy them anyway by law there is not much to think about. Furthermore, companies are not allowed to sell anything less than mandatory cover. These policies will comply with the requirements and you will be able to show it to say you have insurance.
When you have an older vehicle you may find that these are sufficient. Still, it may be worth getting a quote for an increased level of protection and make a decision based on the price difference. Price will be the main determinant for motorists who are seeking this type.
Third Party, Fire and Theft
Some companies sell basic coverage with the addition of fire and theft. These policies may be ideal for automobiles that are hardly driven on the roads. It may be for a classic car that is kept for its beauty and as a collection item. They will spend most of their time on the garages.
They still need the liabilities section and it would be smart to insure them for fire and theft. Generally, these packages are only little more expensive than the basic ones discussed above. They may be a good middle ground solution that is preferred by the owners of older vehicles.
Generally, collision and comprehensive coverage is sold together and therefore policies with these additions are commonly known as comprehensive. They would automatically include liabilities as well as essential protection for your vehicle.
They aim to provide decent cover at affordable rates. There are many policies that can be compared with each other in terms of protection offered and prices. Companies make nice packages to attract the masses of buyers. They provide good cover but can exclude some of the extras like rental car provision.
Fully Inclusive Policies
They go one step further and include a few extras on top of liabilities, collision and comprehensive. The aim is to provide high end and exclusive packages that will take care of almost any losses that may be suffered by auto owners.
Quite a few people own expensive automobiles and they demand policies that leave nothing out. Usual additions would be rental reimbursement and uninsured motorist cover as well as better legal defense offer. They may automatically include a few more extras like driving abroad without the need to buy a new policy or even tell your company that you are going abroad.
They may come with a much preferred terms and conditions as well. For example, the company may guarantee that your accident repairs will be fully satisfactory and they will not use aftermarket parts. Also, they are likely to have lower deductibles and may include accident forgiveness depending on your qualifications.
These are they type of policies that will cost a bit more. They are ideal for people who are risk averse and would rather get insured properly. When you spend a small fortune for an automobile you shouldn’t try to cut corners when it comes to insuring it.
Customized Vehicle Insurance Coverage
There are a few ways you can customize your policy. Every addition and changes you make will affect the premium. If you have a classic or highly modified automobile you may want to customize your policy to make sure you and the company are on the same page.
For example, you may want to insure on the agreed valuation bases so that there are no arguments as to how much the insurer will have to pay you when your automobile is totaled. When you have the money you can insure anything in any way you want.
Think about your budget, automobiles and preferences and make a selection. Know that you are not limited to a particular type of cover and certain insurers. There are plenty choices in the marketplace.