Category: Auto

To legally drive around in your car, insuring your car is as important as getting a driving license. There are a lot of companies that provide automobile or auto insurance in a variety of policies. Here, auto refers to automobiles such as cars and other four-wheelers. These policies keep you economically protected in case of any unforeseeable mishap happens. So, if you are going to buy a new car, do a thorough research on the insurance companies and policies for insurance for first car.

History

The first auto insurance in the world was given to Gilbert J. Loomis in Dayton, Ohio. He purchased the policy in order to protect himself if his car caused damage to person or property. From there on, there was a boom in the insurance companies giving rise to many types of policies that helps you in case of an accident. Basically, you opt for a plan for which you will be paying a monthly or annual fee and when in need, the company provides you with financial help.

Types of Car Insurance

In general, car insurance policies can be divided into two: Comprehensive Car Insurance Policy and Third party car insurance policy.

• Comprehensive car insurance policy: In this type, the insurance protects you vehicle and its accessories from any damage. It can also cover for theft of vehicle as long as the vehicle was in a not in active use. There will be different policies available as per your requirements. Approach a reputed institution and find what’s best for you.
• Third Party insurance policy: Third party refers to anyone who is not involved with the insurance agreement, for example, pedestrians, public bus users, etc. Now, when an accident occurs, it might cause death or permanent injury to any of these third parties and to cover your legal liability, by compensation, is what this policy is for.

In some places, both are necessary for valid first auto insurance.

Researching for the Best First Car Insurance

Research is very important when you are choosing the best first car insurance. There are a lot of policies available out there and it can be overwhelming. Read the reviews about the companies and policies. Make sure what you are opting for. Go for combo plans that you actually need. The more the coverage, more expensive it becomes, so wisely choose your option.