The car is one of the greatest inventions of all time, it has made life and transportation easy and convenient for countless people But owning a car comes with certain obligations, a car owner has to be responsible for everything and anything that comes from owning a car

One major responsibility is adding car insurance in your list of priorities But why is it necessary to have car insurance? Furthermore why is it highly recommended? Most people would think that the different types of car insurance are an additional expenditure to his or her limited expenses However there are certain advantages that guarantee your security when your car is insured, especially when something unexpected happens, like car accidents or other mishaps Car insurance is an insurance procured for cars and other vehicles The primary benefit of car insurance is to provide monetary security against physical damages and injuries that arise from traffic accidents and other liabilities that may be covered by the insurance policy

Different types of car insurance may provide coverage for six or seven varried episodes or events A car insurance policy has different guidelines and procedures depending on the chosen type of insurance Since accidents are inevitable and they do happen, these accidents may incur financial responsibility Whether it is minor or major damage you will be held accountable to settle the damages, that is why car insurance is important Car insurance policies typically are divided into two categories

The first party liability and the third-party liability The first party is the owner of the insurance policy and a third party is the other person involved in an accident with the first party The first party may have caused damage to the third parties property For a more comprehensive examination of the different types of car insurance policies let's consider the following list Liability insurance, one of the most common of the different types of car insurance is liability insurance, which is typically required of most americans

Although it varies from state to state, the vast majority of states require you to have a minimum of liability insurance If an auto accident happens that is your fault as determined by a law enforcement official, you are liable to pay for the damages, such as the medical expenses and other expenses like lost wages and/or property damages The amount of the liability insurance you decide to purchase will depend on the assets that you want to protect Therefore if you want to avoid risks of spending more out-of-pocket it is best to possess a higher amount of coverage Collision insurance, another of the different types of car insurance is collision insurance

If you only possess liability insurance, chances are you will have problems if you are involved in an accident Given that liability insurance pays for the damages of the third party, you may have nothing to pay for your own damaged car, especially if it is your fault What you need is a collision insurance policy which will readily cover and resolve any damage that occurs to your own vehicle Collision insurance provides the resources you will need for the repair of your own car Although this kind of insurance does not pay for a brand new car especially if your car was totally wrecked, it will only pay for the value of your car prior to the accident

Collision insurance also covers for incidents like hit and run Comprehensive insurance, comprehensive insurance one of the most popular of the different types of car insurance, it generally covers insurance which is not covered by liability and collision insurance is respectively Liability and collision insurance is concern only automobile mishaps cost by yourself or other motorists, however comprehensive insurance on the other hand covers damages to your car due to different circumstances, such as if your car is damaged by environmental disasters, storm, earthquake, or fire, vandalism, or if your car is stolen This insurance is a good thing to have, however you could lessen the policy price if simple acts are undertaken, like installing an anti theft device, g_p_s_ tracking device, or an alarm in your car Medical/personal injury protection auto related injuries no matter who is at fault will be covered by this kind of insurance, the coverage will be for you or your passengers, medical expenses and lost wages beyond your own personal health insurance Uninsured motorist protection, another of the different types of car insurance, this insurance policy provides liability coverage if you are involved in an accident where the other driver has no insurance, or not enough insurance to cover your damages

This insurance policy also pays for the policy owner and the passengers for the damages incurred if the driver at fault is nowhere to be found, hit and run cases No-fault insurance, this is one of the more unique of the different types of car insurance existing today, there are only twelve (12) states where this kind of policy is available, this type of insurance supports expedient payouts to cover for medical expenses over damages and injuries, provided that there is a prolonged and delayed disagreement over which party caused the accident Gap insurance this is one of the seldom used of the different types of car insurance If you have not yet completely paid for your car this type of insurance would benefit you, this kind of insurance will pay the difference between the insurance payout and the remaining balance of your car loan Cars lose value at every turn of the clock, so it is very important to constantly review your car insurance policy to revise it to a more appropriate coverage that will allow you to be worry-free during unexpected accidents or other mayhem

So whether you are shopping for online car insurance or shopping at brick and mortar insurance provider, having one of these different types of car insurance policies will give you peace of mind