With the many different types of auto insurance policies out there, one may find it difficult to do auto insurance comparisons on their own. Knowing the type of coverage and policy needed will be helpful in sorting through the information and getting the best policy for a family or individual.

Liability Only Policy

All major personal automobile insurance companies offer policies that are comprised of liability only coverages. These policies do not include coverage for the insured’s vehicle or property, except in a few states in the event of an accident with an uninsured driver. These policies provide the state required coverages to drive and are often favored by people on a budget you have a vehicle that does not have a loan on it. This type of policy is also good for vehicles that are not often driven, or are over ten years or older.

Physical Damage Policy

Finding a policy that has just physical damage coverages during an auto insurance comparisons will be more difficult, as this coverage does not make the vehicle legal to drive. It is often offered for people that have had a standard policy and will be not using their vehicles for a certain period of time. These coverages provide compensation for damage or loss to the insured vehicle itself. Often times, if a loan company requires this type of coverage be on a basic policy, and is it not obtained, the financing company will add their own physical damage coverage and charge the owner.

Standard Policy

These are policies that contain both physical damage coverages and liability coverages, and can also offer additional coverages such as Emergency Road Service. As with most policies, these are often only applicable within the United States, and sometimes for short times in Canada. People that have auto loans and drive their vehicles regularly often have this type of policy to satisfy the states requirement and their finance company’s requirements.

Named Non-owner Policy

There are some instances where someone that does not own a vehicle would want to do auto insurance comparisons and get a policy. Sometimes the state will require this of a person that has committed certain offenses. There are also people that do not own a vehicle, but often rent or driver other people’s vehicles. This type of policy provides coverage for a person to drive vehicles they do not own. They normally are liability only, but policies with both liability and physical damage are offered in some situations as well.

Antique Auto Policy

Auto insurance comparisons for a restored or antique automobile works a little bit differently than for a normal vehicle. If one wants to have the full replacement cost or value of a restored vehicle covered, they will need an antique, or stated value policy. Most policies pay actual cash value for property damages, and these pay either the replacement cost, or an agreed upon amount, in the event of a loss.

Commercial Auto Policy

If a vehicle is used in the course of business, your auto insurance comparisons may lead you to realize you’d be better covered with a commercial or business policy. These policies may provide better coverage for contents (tools, materials, product, etc.) as well as better liability limits for passengers in the vehicle. Most personal companies are limited in the amount of business they will cover under their policy and claims on vehicles that exceed their allowed use can sometimes be denied.

More Auto Insurance Articles
General Insurance Homepage

.