Car Insurance – The Different Types of Auto Insurance Useful Guide

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Depending on what state you drive in, there will be different mandatory requirements for the specific types of auto insurance policy that you will need to purchase. Within those parameters, however, there will be some room for you to choose your own coverage.

Types of Auto Insurance

That is why it’s essential to learn a little bit more about the various plans that are out there, to find the cheap car insurance that will still keep you covered and safe. The most common type of insurance policy out there is fully comprehensive auto insurance, which just as it sounds, offers full coverage.

types of auto insurance most expensive

This fully comprehensive car insurance may also be the most expensive, but it will certainly insure your car against any type of harmful event. That ranges from accidents with other cars, to vandalism and theft. If considering this type of insurance policy, bear in mind that it may not cover the entire value of your car, so be sure to read the fine print before you pay for this costly option. There are cheap car insurance policies that might cover almost as much, but at a far lower premium, so that is something to consider before signing up for comprehensive coverage.

types of auto insurance third party insurance

For the most basic car insurance, by contrast, you could sign up for third party insurance, or personal liability coverage. This type of plan helps pay for the damages if you get in an accident with another car, are at fault, and have to pay for medical bills or damages to their vehicle. While this is the cheapest type of car insurance, it will not cover the damages to your own car, and so is only really recommended if you are driving an older vehicle that has little value to it. That way, you can pay for the damages and then just purchase a new car yourself if it is totaled.

A middle option exists for those who want a little bit more coverage than the third party insurance but aren’t willing to shell out for full comprehensive and collision. This happy medium of car insurance is third party, fire & theft, which covers the catastrophic events of your car being stolen or totaled. However, it will not cover instances in which you get in an accident, are not at fault, and the other person’s insurance coverage doesn’t cover the damages to your car. For that reason, it’s not recommended for those who drive brand new vehicles.

Car Insurance Without A Car

How to get a car insurance without a car

Introduction

Most people have the notion that only a genuine car owner can obtain insurance. On the contrary if you rent cars frequently, use a car sharing service, or borrow cars frequently you need to be covered. In such a case a non-owner car insurance would be very appropriate. A non-owner car insurance offers personal liability protection if you happen to be at fault in a road carnage.

Below are the requirements of getting a car insurance without a car

  • You must have a valid driver’s license
  • The person should not be able to access a car regularly
  • A credit or debit card
types of auto insurance non-owner car insurance

How to get a non-owner car insurance 

Estimate the total value of your assets

This includes both your home and personal property within the home. All this will help the auto insurance company to determine your rate. In addition, insurance companies that offer non-owner car insurance will also require a valuation of your future income. Surprisingly, this may turn out to be much higher than all your assets combined.

Get quotations from insurance companies

When getting a quote for a non-owner car policy, ensure it’s only for personal liability. Just explain to the insurer that you do not own a car but have a valid driving license. Due to this you need protection when driving other people’s cars. Make sure the quote does not include protection against collision, fire, theft as well as other comprehensive losses.

Ask about your states minimum liability coverage regulations

Any car insurance has a set of minimum limits. These limits vary from one state to the other. The minimum liability limits spell out the maximum amount of compensation your insurance company will pay when you lodge a claim. While you inquire about the minimum liability limits it is also paramount that you know the corresponding premium costs. It is advisable that you shop for a good insurance company which offers reasonable rates.

Other things you need to know about a non-owner car insurance

What it covers

  • Medical costs taken care of if you happen to suffer injuries
  • Bodily injury covered
  • Offers liability to property damaged
  • Some insurers will also cover the medical bills of an uninsured motorist.

What it does not cover

  • Towing
  • Labor
  • Parts and equipment
  • Reimbursement of rental costs
  • Comprehensive coverage
  • Collision
types of auto insurance car insurance without a car

How much does it cost to get a car insurance without a car?

Generally a non-owner policy is cheaper than a regular auto insurance. The price is not static though, it varies from one company to the next. Usually companies charge up to a maximum of 80% the value of a regular auto insurance for a non-owner car insurance. The cost is determined by many factors including your age, how frequently you drive, where you reside as well as your driving record.

Conclusion 

Securing a non-owner insurance is the best way to get insured while on the road if you do not own a car. Also try to contract an insurance company that offers good rates for regular car insurance. This way if you get your own car you can change your policy to an owner’s policy without changing an insurer.

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