Third Party Liability Insurance
There are many different kinds of automobile insurance available with one of the types being third party liability insurance. This type of insurance is required by most every state before you are legally able to operate your vehicle on the road. It is common for this type of coverage to simply be known as liability insurance. With this policy, if you are in an accident that is your fault, your insurance will cover a certain amount towards the property damage and medical expenses of the other party. The coverage requirements differ from state to state, you can easily look up your state's requirements or ask your insurance agent.
If you choose not to get third party liability insurance, some states will allow you to pay an uninsured motorists fee, which permits you to drive but provides no coverage in the event of an accident. Therefore, it is far more cost efficient to get liability insurance because in life there is no way to predict unfortunate events, especially on the road. Just looking at statistics about automobile accidents is enough to tell you that insurance coverage is a must have. Some drivers may choose to get more coverage than just liability which offers them more protection.
For automobile owners who have a lien on the title of a financed car or have a new vehicle, full coverage may be required. While there is no policy actually called full coverage, this phrase refers to a policy that covers a variety of things. For example, it would include liability insurance. It would also include collision insurance, which protects you even if the accident is your fault.
Comprehensive insurance would most likely be included as well, which protects against damage to your vehicle from theft, vandalism or natural disaster among other things. Uninsured/underinsured motorist coverage will also likely be included, which is wise to have because it covers you if you are in an accident with a negligent driver who does not have insurance or who does not have enough insurance to cover your property damage and/or medical expenses.
There are many websites where you can get free instant quotes for third party liability insurance as well as the other types of insurance described here. These sites will request you to fill out a short form that asks you about your basic information, driving record and vehicle. The quote returned to you will be based on the data you submit. It is not the actual amount you would pay, only an estimate. After completing the formal application process with an insurance agency you would be notified of your policy amount and premium payments.
Your premium payments can usually be paid either monthly, semi-annually or annually. Sometimes paying by the year can save you money. However for those on a budget who cannot afford to pay all at once monthly payments are they way to go. You can always change your payment schedule and even your coverage amount as your finances and/or coverage needs change. You can also add other drivers and automobiles to your policy as needed, sometimes there is a discount for multi-car policies.