VEHICLE INSURANCE

Vehicle insurance can be divided into three broad categories on the basis of the cover.

Third Party Vehicle Insurance: Most countries require third party insurance by law. Many states have a specified minimum limit for third party insurance. It pays for the loss that occurred upon another person's property. This applies in case of an accident in which the insured vehicle is deemed responsible. It protects the policyholder against financial liability towards the affected party.
In short, when it comes to vehicle insurance, make sure you are well covered.
Collision Vehicle Insurance: This type of vehicle insurance covers damage to the insured vehicle in case of an accident. In this type of insurance, the term 'accident' refers to collision with another car or an object resulting in loss of control leading to total damage. Collision policy comes with a deductible, which is the amount that an individual has to pay beforehand itself. Apart from the legally mandatory third party insurance, collision cover is also essential to avert financial damages.
Comprehensive Vehicle Insurance: This policy provides cover against damage caused to the insured vehicle besides an accident. It includes theft, fire, vandalism and hails. A high-end comprehensive cover includes periodical repairs, guarantee on vehicle parts and vehicle's physical enhancement.
The key to buying a cost-effective auto insurance cover is to understand the coverage one requires. The best way to start understanding this is to compare vehicle insurance quotes of different companies and buy the very best coverage accordingly.