When buying car insurance, always make an apple for apple comparison of the rates and policies offered by the various insurance companies. That is to say that in order to make a successful comparison, you need to compare the same facts and figures with regards to the rates and policies offered. It is fairly easy to obtain insurance quotes for your comparison purposes. So take your time when doing it, to ensure that you have the appropriate policy to cover your needs at the best possible rate.

First and foremost, find out what type of car insurance are available in the market. There are different types of car insurance offering different type of coverage. The coverage is what is covered by the policy, be it comprehensive or minimal. Understanding the varied degrees of options available will assist you in choosing the most appropriate insurance coverage for you.

Basically, there are two types of car insurance available and they are:-

1) Full Comprehensive Auto Insurance
This type of insurance provides you with the most extensive coverage as it covers the policy holder/car owner in virtually any problem. It includes accidents, theft, fire and other problems. Insurance companies always strive to make the person who is at fault or their insurance company, pay for the damages. However, if you have full comprehensive auto insurance, it is not really necessary for you to obtain full particulars of the other person involved in the accident. In most cases, your insurance company will pay for the damages. Take note that not all policies cover 100 percent as some only cover up to 80 percent of the value of the car or less.

2) Third Party, Fire & Theft Coverage
This is another type of policy available which provides slightly less coverage than comprehensive, but more than the minimum. If you have an auto loan, this may be ideal as the payment for total loss will cover the value of the loan. Most of the other claims are covered as well. However, in the event of an accident, your insurance company will only make payment if you are at fault.

Third party insurance is mandatory in most states. It is a limited form of insurance which provides basic coverage to the other person involved in an accident with you and you are at fault. The insurance company will make payment to cover the cost of the other person’s vehicle, injuries and other related expenses. However, your own vehicle is not covered by this type of insurance. It is suitable for vehicles with little or no value and older vehicles which are replaceable. Since the potential financial fallout covers only a small amount, it is the least expensive form of car insurance.

Having knowledge of the types of insurance available, you can now select the type that is most appropriate to your needs. You may then proceed to compare from the quotes you received or better still, ask the insurance agents/companies to give you specific quotes for specific types and amounts of coverage. Below are some questions/information you may require to determine, what is covered or what is not covered by the policy:-

  1. On both yearly and lifetime basis, what are the coverage limits?
  2. Does it meet the minimum required coverage in your state?
  3. How much and how often, the premium need to be paid?
  4. What deductible is applied to the policy?
  5. Any offer of discount and by how much?

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