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Cheap auto insurance – full coverage vs basic coverage

As a customer, your choices when buying different things seriously affect the price you pay for a good or a product. This is especially important when dealing with such a complex matter as cheap auto insurance. Since auto insurance policies consist of different aspects and include different coverage options, the things you choose can make your policy either affordable or very expensive. It's usually a matter of choosing between two extremes – full coverage and third party liability – that affects the final cost of the policy. So let's take a look at these extremes in order to see what cheap auto insurance possibilities are available and what additional aspects should be considered.

Full coverage (also called fully comprehensive) and third party liability are two distinct types of auto insurance policies each carrying a particular coverage set to insure your house with. Full coverage, as the name suggests, delivers the broadest selection of coverage that will protect your car not only in cases of direct collision with other vehicle but also in cases of theft, natural disaster damage, accidents with uninsured drivers and many others. Of course, it would be wrong to say that full coverage provides protection against virtually any peril your car can face, since there are always some minor or major exceptions. However, it's the broadest set of coverage you can get for your car. And the most expensive, since the abundance of coverage options will automatically raise your premiums sky high.

On the other side of the spectrum we have third party liability coverage which is the most stripped down policy type you can get for your money. It only carries third party liability coverage, which is required by state laws and will only pay out in case you have caused an accident with another vehicle. Since there's nothing but the basic coverage option this type of policies will guarantee you with cheap auto insurance and you will hardly find anything cheaper on the market. But the question is whether it will be enough for your vehicle.

Some of you may say that liability coverage is the only possible option for cheap auto insurance. However for many drivers who have used loans in order to finance their vehicles full coverage is the only real option since it's required by the contract. Yet, some drivers who have used proper funds for purchasing the vehicle may also feel like full coverage policies meet their requirements better regardless of the price because they need the broad set of coverage. It's hard to say which policy type is better because it's a subjective matter and depends totally on your personal insurance needs. So make sure to set them right before looking for cheap auto insurance.

More about Cheap Auto Insurance

More about Cheap Auto Insurance