Monday, February 16, 2009

Types of Motor Insurance

There are many types of insurance ranging from Life Insurance to General Insurance. Automobile Insurance falls into General Insurance and is one insurance policy that you cannot do without if you own a car. A motor insurance is compulsory to enable you to get the right (in our country that is the road tax) to drive your vehicle on public roads.

Since motor insurance is compulsory, it is good if you acquaint yourself with the types of affordable motor insurance and the kinds of risks covered. Among the risks covered by motor insurance policy is liability insurance which covers injuries and damages to third parties. This is the very minimal requirement to enable you to drive your vehicle on public road as the authorities want to ensure that should an accident happens you will be able to pay for injuries and damages to third parties. Other types of risks include collision coverage, comprehensive coverage, theft coverage and no fault policies.

One sticky area is motor insurance for students and other young drivers. Since students and young drivers have limited driving insurance, getting affordable motor insurance may present a problem so doing your research and "window shopping" will be a good idea.

Another area of motor insurance you should get familiar with is the fault versus no fault car insurance. Motorists will only be able to hold no fault motor insurance in Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, Utah, and Washington D.C.

When choosing and purchasing vehicle insurance, obviously one would want to be able to converse intelligently and towards this end, do get familiar with the many motor insurance terms and phrases.

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