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Insurance for Cars Auto insurance covers car owners against accidents or theft of their cars. Depending on their choices, customers get different levels of cover from auto insurance companies. Auto insurance can cover damages to the car, passengers in case of an accident or even when the car is stolen. Legal requirements in some states make it mandatory for car owners to have some minimum level of auto insurance cover. Different auto insurance policies to choose from are available depending on what you would like to be covered. Some of the different auto insurance policies available to car owners include third party or liability auto insurance and full or comprehensive auto insurance. The minimum level of insurance that car owners can get from auto insurance companies is the third party or liability auto insurance cover. For auto insurance covers, this is the most basic. An auto insurance company will pay the damages of an accident to the other party in an accident if it is proven that their customer was at fault in the occurrence of the accident. Third party insurance cover is usually set and agreed on beforehand. This means that the auto insurance company sets the maximum amount they can pay in an accident beforehand. The policyholder should confirm what the insurance covers and what the limits per accident will be. A policy may be attractive because it charges low premiums, but it provides a minimal cover that is not practical. As the minimum level of auto insurance, the third party insurance is mandatory in most states which require a minimum insurance cover. Auto insurance companies also provide a comprehensive auto insurance policy. As the name suggests, comprehensive insurance covers your car comprehensively. The repair of your car will be paid for by the insurance company if your car is in an accident. The insurance company usually decides on the amount that will be paid out in case of an accident. Although the limits for amounts to be paid out in an accident are higher for comprehensive insurance, there are maximums just like in third party insurance. Comprehensive insurance is usually optional in most states and it is up to the consumer to choose if they need it.
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There are other kinds of auto insurance like the medical and personal injury protection cover. This type of cover pays the medical expenses of the driver and the passengers in case of an accident. This cover is a minimum requirement in some states
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Regardless of your insurance cover, make sure it meets the legal requirement. Insurance for recreation vehicles is different from auto insurance.