subject: A Review Of The Most Common Types Of Car Insurance [print this page] A Review Of The Most Common Types Of Car Insurance
Although it can seem confusing at first, car insurance Orange County can be easily understood once the most common types are defined. Law requires having at least basic coverage, so every car owner is going to have to do some research. Understanding the limits of each kind of insurance and what exactly is offered can help you to find a good insurance company and choose a policy that is right for you.
The most basic car insurance coverage that every US driver is required by law to carry is called liability, or third party insurance. In exchange for a regular scheduled payment, any other driver involved in an accident covers the driver against legal claims for property or medical damage. This means that while you, the driver, are not necessarily granted the right to file financial claims, you will be protected against claims by others if you are at fault. This is a good thing if you rear-end someone in traffic. Your insurance company will cover repairs for the other driver and you will not be charged personally.
On the other end of the spectrum is fully comprehensive car insurance Orange County. As the name implies, this coverage protects you against just about anything. If your car is stolen, you can make a claim to the insurance company, likewise if you are not at fault in an accident but the other party is uninsured, or a host of other causes. Obviously, this insurance is the most expensive, though it is often required by financing companies. One thing to be aware of is that most companies will only insure 80% of the full value of your car. This is to discourage false claims by those experiencing financial difficulties or who just don't want their car anymore.
Between these two extremes, there is a middle of the road option called third party, fire, and theft. While this type offers the same coverage as basic liability, it also covers you in the event of fire, theft, or other damage. One important catch is that generally the insurance company will only pay if you are at fault in an accident with another car. If you hit a tree, you are not entitled to any financial assistance whatsoever. Furthermore, if you are not at fault in an accident and the other party cannot pay for whatever reason, your insurance will not do you any good.
Although there are a few other specialized kinds of car insurance Orange County, these are by far the most common types. Before settling for the minimum, it is a good idea to ask yourself what your car is worth to you. Is it essential to your career? Will you be unable to replace it should anything happen? No one likes to pay more for car insurance, but likewise, no one ever complained when the insurance check arrived in the mail.
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