Wednesday, January 29, 2014

Types of policies and cheap auto insurance

If you're new to auto insurance, one of the most important things you need to learn is the fact that there are different policy types available. And depending on the type you choose the chance for obtaining cheap auto insurance is altered significantly. The choice of the right policy type usually depends on your current situation and insurance needs. So when shopping for a new policy make sure to choose from the following according to your exact requirements:

Third party liability

Third party liability policies are the simplest thing you will find on the market and offer the easiest way to obtain cheap auto insurance. However, their main downside is the lack of any additional coverage options except the basic third party liability. This option usually fits best with old cars that are fully owned and have little current market value on them.

Third party, fire and theft

This policy type builds on the basic option by adding additional coverage against fire and theft, which can be a serious peril in some areas. The extra coverage will naturally make the policy more expensive, but it is still possible to get cheap auto insurance with this policy type by shopping around or looking for discounts. Third party, fire and theft is usually recommended for vehicles that have a significant current market value on them but are fully owned by the driver.

Fully comprehensive

Fully comprehensive insurance policies are the costliest and the most common policy type in the country. The reason for this is the fact that any vehicle that is financed through a loan is obliged to carry such a policy. And knowing how financing is popular in the US, it's no big surprise to see the most expensive policy type being the most widespread. Getting cheap auto insurance with such an option can prove to be very challenging, unless you are an insurance expert. Usually, the only way to start saving money is simply paying off the loan and switching to a more affordable policy type.

No fault

This is a special version of the fully comprehensive policy type that simply makes it easier to get coverage. Despite the common belief that such a policy takes off the fault from the car owner in any situation, it simply implies that you receive the coverage whether you're at fault or not. Naturally, such a convenience comes at an additional price.


Special insurance policies always come at special prices and are aimed at special vehicles. These usually include collectibles, classic, retro and unique cars. Talking about cheap auto insurance here is certainly irrelevant, since being able to afford such a vehicle implies having enough money to pay for the insurance as well.
No matter what type of insurance coverage you land, always shop among multiple companies and change variables inside a company too on quotes collector site.