Reader’s Question:

I need car insurance for my newly bought car. What are the different kinds of insurance from which I can select that will fit my budget?

Arlo

Kansas City

There are three basic kinds of car insurances that you can look at and see which one fits your budget. These are third party liability, third party theft and fire, and comprehensive insurance. The third party liability covers only the damages done by your car to the other party’s car during an accident. This insurance will not pay you any amount if your car is damaged. This is the cheapest of the basic kinds of insurances. The third party theft and fire insurance covers both your car and the other party’s car. The insurance company will pay any damage to your car and the other party’s car if the damage is caused by theft and fire. It will not pay any damage if the cause is accident. The third is comprehensive car insurance. It covers any damages to your car and the other party’s car in case of accidents. The cost of repairs needed by your car and the other party’s car would be shouldered by comprehensive insurance during accident.

Depending on your budget you have options of the insurance policy that you will purchase. The premium you will have to pay would also depend on the kind of vehicle you have, the kind of insurance you choose and the amount of coverage you prefer. You could always research online to select the cheapest but suits your preference car insurance policy. The insurance companies are being rated by other customers and you should take a look at that.