Saturday, 24 August 2013

Third Party or Comprehensive Auto Insurance?

The terms of Third party and Comprehensive are the most common in the auto insurance sector.  These are two separated policy plans you can obtain via your auto insurance company. 

The comprehensive Coverage ( Full Insurance)

The comprehensive coverage pays for loss or damage to the insured vehicle that doesn't occur in an auto accident. Also types of damages comprehensive insurance covers include loss caused by wind fire, vandalism,  flood,  hail or theft at present.

Obtaining comprehensive auto insurance coverage is a good idea no matter who you are. And also in a stressful time like a natural disaster, an act of vandalism, it can be extremely helpful if the financial burden of paying for vehicle repairs is already taken care of. Also you can choose a low deductible and pay even less should you get into a car accident just makes sure that you have the full amount of the deductible  with you.

Also your vehicle is old and has a low blue book value, then you don't need to purchase as much comprehensive coverage when considering. Also you can replace your car for less than its real value, and then it makes financial sense to skip this coverage. Not only weigh the cost of payments plus the deductible against the cost of replacing the vehicle but also let the numbers dictate how much comprehensive coverage buys.
The Third-Party Insurance Coverage

As we know third-party automobile insurance is one of the more popular types of third-party insurance. That means most of drivers are often required by their state to have adequate insurance coverage to ensure that damages resulting from an accident can be paid for. The term of "Third-party" in the case of automotive insurance would be the driver of the other vehicle, since that person is not the first party (owner) in the insurance policy. When considering third party insurance,
The third party insurance policy purchased for protection against the actions of another party. 
That means 
third-party insurance is purchased by the insured (first party- Owner
from an insurance company (second party)
for protection against another party's claims (third party).

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