Auto insurance is an absolute necessity for those who own a vehicle. Getting a vehicle insured is mandatory by law. This insurance is one of the best ways to ensure good life to your vehicles. Such insurance keeps people safe from huge losses that they can incur while driving.
Therefore, car insurance is essential to get monetary benefits from an insurance company in case your vehicle met with an accident on the road. Auto insurance is categorized into different types, which are as follows:
1. First party expense
It is one of the common types of insurance policy that covers damages in events:
- When policy owner is not at fault.
- Hit and run case.
- The driver at fault does not have sufficient funds for covering damages occurred to the vehicle of policy owner.
2. Third party insurance
It is of the inexpensive insurance policies that consider cases where policy owner is at fault, causing damage to vehicle of any other person. Those who own old cars usually go for this type of insurance.
3. Comprehensive insurance
This policy covers all cases irrespective of considering, who was at fault. This type of insurance cover is required on purchasing a new car on loan.