| As per the U.S. laws, Car insurance is mandatory at | | | | third party, if you are found guilty in an accident. |
| the time of purchasing the vehicle, whether it is a brand | | | | 3. Third party, fire and theft- This protects you in case |
| new car or it is a pre-owned car. | | | | you cause damage to some one else's vehicle. It also |
| Since a lot of insurance companies are available in the | | | | protects your vehicle against theft and fire. |
| U.S. and all of them claiming to be the best in terms of | | | | 4. Comprehensive insurance. This is an all inclusive |
| service and premium charges, it becomes a little | | | | policy. It protects you and your car against all the |
| confusing to decide which Insurance company and | | | | possible damages-loss, theft, fire, accident of your own |
| which policy to choose. | | | | car, damage to another person's vehicle or property, |
| A careful understanding of factors relating the car | | | | damage or death of the driver in the other car, |
| insurance can help you save the money in premium | | | | Buying a comprehensive insurance policy is mandatory |
| and also help to get the best quote and value for your | | | | in case you opt for a loan to buy your vehicle. The |
| money. Insurance is not an investment, as no returns | | | | premium is generally high in comprehensive policy as |
| are fetched. However, you can call it a necessary evil, | | | | compared to the third party insurance, as the |
| one that you cannot do without. The utility of the car | | | | coverage is vast and extensive. |
| insurance is completely understood only when an | | | | After deciding which type of policy you are looking for, |
| untoward accident occurs, or when the vehicle is | | | | you will have to compare the premium offered by the |
| damaged. | | | | various insurance companies. On non-monetary issues, |
| Car insurance can be classified broadly into four | | | | you should compare the procedures. Some companies |
| categories. | | | | are customer friendly and would involve in less paper |
| 1. Third party insurance- This is the basic insurance | | | | work, or they may fill the forms on your behalf and |
| available. The .premium is relatively cheap. This | | | | make the procedure hassle free. Check out from |
| insurance is compulsory in most states in the U.S. | | | | existing customers about their experience with the |
| In the state of Virginia, the car owner has to pay the | | | | insurance company. Some companies may settle the |
| state an annual fee of $500 per vehicle, in case the | | | | claims quickly, where as some may have the |
| car owner does not avail a third party insurance. | | | | reputation of making delays when it comes to settle |
| Whereas, in New Hampshire, it is not compulsory to | | | | the claim. |
| buy a third party insurance. | | | | Read the No Claim Bonus policy of the insurance |
| 2. Compulsory third party- This is the registration fee | | | | companies and also read carefully the increase in the |
| required to be paid to get the cover against any | | | | premium amount after you make a claim. |
| physical damage or injury and medical claims to the | | | | |