Types Of Auto Insurances and a Brief Description Of The SR22
Most states have standard auto insurances that they offer.
These are the full coverage policy, the third party policy, the third party fire & theft and the special policy.
Each of these has different benefits and has different criteria for application.
Also they have each have various premiums that are computed on many different factors.
And there are insurance companies in the market that come looking for you, not you them.
But how do you choose which company to do business with and what type of policy to get? Well, the first thing, probably, should be to figure out what each policy applies to and thereby what type you want.
Everything else has to come after.
The full coverage or the full comprehensive coverage is the type that is probably the most common type you will find.
It is also usually the most expensive.
The reason for this is clear by its name.
It is the policy in which any and all damage made to the vehicle is covered by the policy.
Any expenses incurred for any little or big scratch, dent or overhaul can be charged against the company.
This gives you total security as you do not need to worry about expenses you might incur in an accident or incident that was not your fault.
The next type is the Third Party Fire & Theft.
This policy assures you coverage for the expenses if you (for fault of your own) hit another vehicle.
This means that if you do not hit a vehicle then you cannot make a claim.
Also if it is not your fault you cannot make a claim.
In essence the expenses that need to be incurred for damage control of a vehicle (whose damage you caused) can only be charged against the company.
Your damages are not covered.
The basic third party one is a slight improvement on this one in the manner that you can claim damage not only to a vehicle, but also to a person or property you might damage.
The last type is the special type that is usually applicable to classic cars that are more than 25 years old.
Another service the companies provide is the SR22 certification.
This is not really required by all drivers and in most cases is made only when ordered by a court.
It is a certification that is legal proof of the insurance you carry.
It is usually carried by people who have a few traffic violations like DUIs, Drug violations, driving without insurance, etc.
These are the full coverage policy, the third party policy, the third party fire & theft and the special policy.
Each of these has different benefits and has different criteria for application.
Also they have each have various premiums that are computed on many different factors.
And there are insurance companies in the market that come looking for you, not you them.
But how do you choose which company to do business with and what type of policy to get? Well, the first thing, probably, should be to figure out what each policy applies to and thereby what type you want.
Everything else has to come after.
The full coverage or the full comprehensive coverage is the type that is probably the most common type you will find.
It is also usually the most expensive.
The reason for this is clear by its name.
It is the policy in which any and all damage made to the vehicle is covered by the policy.
Any expenses incurred for any little or big scratch, dent or overhaul can be charged against the company.
This gives you total security as you do not need to worry about expenses you might incur in an accident or incident that was not your fault.
The next type is the Third Party Fire & Theft.
This policy assures you coverage for the expenses if you (for fault of your own) hit another vehicle.
This means that if you do not hit a vehicle then you cannot make a claim.
Also if it is not your fault you cannot make a claim.
In essence the expenses that need to be incurred for damage control of a vehicle (whose damage you caused) can only be charged against the company.
Your damages are not covered.
The basic third party one is a slight improvement on this one in the manner that you can claim damage not only to a vehicle, but also to a person or property you might damage.
The last type is the special type that is usually applicable to classic cars that are more than 25 years old.
Another service the companies provide is the SR22 certification.
This is not really required by all drivers and in most cases is made only when ordered by a court.
It is a certification that is legal proof of the insurance you carry.
It is usually carried by people who have a few traffic violations like DUIs, Drug violations, driving without insurance, etc.
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