Three Different Types Of Auto Insurance Coverages

Auto insurance is insurance for automobiles, trucks, vans, motorcycles, and all other road-going vehicles. Its primary function is to give financial protection against damage or injury caused by road accidents and from liability which may also arise out of personal accidents in a vehicle. The law requires all drivers to have auto insurance, and it is up to the driver to find the right kind of insurance for him or her. There are three basic types of auto insurance, and the cost of insuring each type varies with it. In general, the most expensive is comprehensive auto insurance which covers both personal and damages caused by accidents.If you wish to learn more about this, visit Abilene auto insurance.

The next in line is third party liability, which provides coverage only for damages to another person’s property or person. Under this coverage, the insured pays to repair or replace the victim’s vehicle. If the victim has no insurance, he/she can file a suit in which case the insurance company will pay all medical and other expenses, as well as legal costs. The next most expensive type of auto insurance coverage is collision auto insurance coverages which offer replacement value for vehicles that are damaged in an accident.

Comprehensive insurance offers the least amount of coverage, but offers the most protection in the event of total loss or theft. This type of insurance should be purchased if your vehicle is worth a lot or if you have expensive parts that you may want to replace after an accident. You may also want to purchase comprehensive insurance if you often lease or finance your vehicle because it does not provide coverage after the end of the loan or finance term. It is very important to carefully read the fine print of any contract you sign, especially if you are purchasing a new automobile, so that you will know exactly what coverage you are purchasing and what you may need to replace your vehicle in the event of a major accident.

Contact Info

Kim Austin – State Farm Insurance Agent
4542 S 14th St, Abilene, Texas 79605
(325) 692-0408