Three Types of Car Insurance

Car insurance comes in several types, and this blog is, as usual, here to help. This time it's John P Henderson who's helping us.

3 Types Of Car Insurance 2011

Finding insurance on the market may be tricky if you don't know what you are looking for. You need to know the types of insurance out there and what is required by your state's laws. Most states mandate that you should have auto insurance when you get a vehicle.

The minimum type of policy you should carry is the liability policy. This provides coverage for damage which happens to other drivers. This type of insurance covers only the damages to other person or property that you may cause with your vehicle.

There is another type of insurance called collision coverage provided by the insurance companies. This type of insurance, collision coverage, covers liability and car owners. It also covers the damages which happen to other cars.

The third type of insurance is comprehensive car insurance. This is just what it sounds like-a fuller version of car insurance which can help you in most situations.

Auto insurance rates may rely on the driver's age and driving record. A good driving record can go miles for you in the case of insurance. A bad driving record can increase your rates significantly.

A driving record is created by all of the traffic violations you may have. A non moving violation, like a parking ticket, does not affect your record. However, a moving violation, like a speeding ticket, does affect your record.

Insurance companies look at this record, and using a formula of their own, they analyze this as well as your age, risk on the road (high risk driver or low risk driver) and the type of car you own and they create a profile for you which they use to determine your car insurance rates.

Car insurance is tricky, and all states do not require the same amount of coverage. It is important to check on this as well.

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Source: EzineArticles.com.

Thank you John!
Nadav

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