Looking for cheap car insurance can sure take a lot of time and make you believe that it's hard to get. Well, this can be true if you're looking for a cheap variation of an expensive policy type. That's right, there are different types of insurance policies available on the market, and depending on which of them you choose the cost of insurance will vary among different amounts of money. That's why it is crucial to understand the main concepts of basic types of policies and the differences between them if you really want to get adequate and cheap car insurance. Here's a short description of each basic policy type:
Third-party liability
The most stripped down car insurance policy type features only the essential coverage type you need to legally drive a car in most states. This coverage will pay out only in case of an accident that you've caused, and will cover injuries and damage inflicted to the other party. It is the cheapest policy available on the market as this type of policy is stripped of any additional options.
Third party, fire and theft
This policy type extends the range of situations when it covers you. Except the usual third party liability, it also features fire and theft coverage to address some of the most common perils a car may be subjected to besides collision. For any drivers that have either financed their purchase on their own or have paid out their loan this type usually costs a little more but is the most suitable.
Fully comprehensive
If you're looking for a policy that has it all, this is it. Fully comprehensive policies usually include the entire spectrum of coverage options an insurer is ready to provide you with, and doesn't require you to be at fault in the accident. Naturally, this policy type will rarely grant you cheap car insurance, since it's the most expensive you will find. And at the same time, it's the most common policy type in the USA because lending institutions make it a requirement when giving out an auto loan. Still, you might want to shop around to see if there are more affordable offers on the market.
Specialized
Special car types require special policies that cater to the need of their owners. Such is the case of retro, customized or unique vehicles. These policies are usually expensive due to their limited nature and include various requirements that aren't featured in any other policy types.
