Car Insurance Group Types

• Drivers should know the two types of car insurance and what type they need.car talk image by Ivanna Buldakova from Fotolia.com
  
  Car insurance is required in America in 49 of the 50 states, making it one of the most common legally required items in the country. New Hampshire is the only state in America that does not require car insurance; however, proof of financial responsibility is required. While most states require car insurance, the laws governing it vary from state to state. It is important to understand that there are two main types of car insurance and to determine which type of policy you have or should obtain.
  
  

Third Party Liability

• Third party liability covers the damage to body and property of any person with whom the policy holder has an accident. The two types of Third Party Liability insurance are Bodily Injury and Property Damage policies. Bodily Injury policies cover the damage done to life and limb of the victim to whom to the policy holder injured. These policies pay victims for medical expenses, lost wages due to time off work as a result of injury from the crash and other related expenses. Property Damage policies provides compensation for the damage of personal property caused by the policy holder, whether that be auto damage or structure damage.
  
  

First Party Expense

• First Party Expense car insurance provides compensation to the policy holder in the event they are involved in an auto collision with another driver who does not have insurance or have adequate insurance to cover the expenses incurred by the policy holder. The most common types of First Party Expense car insurance are Collision (providing for repair of the policy holder's vehicle) and uninsured/under-insured motorists insurance (providing for coverage of expenses should the policy holder be involved in a collision with an uninsured or under-insured driver).
  
  

Further Information

• When choosing a policy, it is important to know some generally accepted items pertaining to the car insurance industry. Good credit ratings affect your insurance premium amount. Most insurance providers consult the credit reports of their customers or potential customers. Additionally, the make and model of a car can have an impact on the premiums that a driver will pay for car insurance. Most insurance companies have information compiled on most cars that are the basis for their premiums. The most pertinent information collected is the cost of the car, the theft statistics for a particular model and the safety rating for a certain model.