Auto Insurance – Which Type Is Right For You?
By Joseph Kenny
Auto insurance is a form of insurance available to consumers who own cars, trucks and other vehicles. It covers the insured party against the risks involved in owning or driving a vehicle. This may be a car accident, damage caused to other cars or property, loss to passengers in your car, and damage to your car itself.

Optional Covers

There are different levels of insurance available depending on what risks you wants to cover. You can cover against the costs of repairing your vehicle after an accident. You can cover the cost of purchasing a new car should yours be stolen or damaged beyond repair. These are optional covers.

Liability insurance on the other hand is compulsory for all drivers. This will cover the risk of claims being made against you as the driver or owner of the vehicle that caused damage to the property of another, the vehicle of another, for medical expenses of others injured as a result of an accident, including passengers in your car. If you have liability insurance, it will only cover these risks. If you have comprehensive insurance it will cover also the risks to yourself and your own vehicle.

GAP Insurance

However, even comprehensive insurance will not fully cover your risks. First of all there is the issue that, as soon as you buy a new car, its price suddenly drops significantly because it is no longer new. It is used.

Erie Insurance Review: Misled by Erie Insurance
Reviewed by Screwed.By.Erie from Illinois on February 12, 2010. Recommend: No.
Nationwide Review: Nationwide falsely reported my claim.
Reviewed by exNationwideCustomer from Pennsylvania on February 11, 2010. Recommend: No.
Progressive Review: 180 dollars a month
Reviewed by Tammy from st petersburg, fl on February 7, 2010. Recommend: No.
State Farm Review: Nicole DellaPorta
Reviewed by WOOD0905 from Saratoga Springs, NY on January 16, 2010. Recommend: Yes.
USAA Review: USAA is by far the best.
Reviewed by Tim Johnson from Phoenix AZ on January 2, 2010. Recommend: Yes.
USAA Review: Watch Out For Cars With A USAA Bumper Sticker
Reviewed by zootmancars from San Antonio on December 8, 2009. Recommend: No.
AAA Review: Bad, Bad, Bad. Really Bad.
Reviewed by Joe Lindsay from San Diego, California on November 20, 2009. Recommend: No.
USAA Review: gouging paying customers
Reviewed by sickandtired from austin, texas on October 5, 2009. Recommend: No.
Nationwide Review: Undecided
Reviewed by Brandy H. from OH on September 22, 2009. Recommend: No.
State Farm Review: Two high quality claims experiences
Reviewed by AB from Kansas City, MO on September 20, 2009. Recommend: Yes.
Esurance Review: HELL NO!
Reviewed by ihateesurance from charleston, sc on August 4, 2009. Recommend: No.
Farmers Insurance Review: Bottom of The Barrel
Reviewed by Farmers Sucks from Right Here on July 12, 2009. Recommend: No.
Progressive Review: Horrible horrible service/ customer service
Reviewed by pissed off from ca on June 30, 2009. Recommend: No.
Liberty Mutual Review: Great Company
Reviewed by Firefly from Pennsylvania on June 22, 2009. Recommend: Yes.
Progressive Review: Not worth the risk
Reviewed by gimp from Warren on June 22, 2009. Recommend: No.

So if you were to destroy your car the day after buying it, the insurance company would likely assess the value as something less than what you paid for it, even though you may still owe a good deal more than that in payments and financing.

To cover the chances of this happening, so called GAP insurance was developed. This covers the difference in the actual value of your car, and the amount you still owe in payments. The growth of vehicle leasing has also led to GAP insurance becoming more important.

Extra Cover

In the US, the insurance policy will generally cover the owner of the vehicle and any others who drive the vehicle so long as they do not live at the same address. For those living at the same address, you should have them specifically added to your insurance policy for an extra fee. This means that if you crash someone else's car, while driving it with their permission, you will be covered by their policy, not your own. Non-owner policies are available to cover you on other people's cars but these will only be available if you do not own your own car.

About the Author
Joseph Kenny is the webmaster of the insurance site http://www.insure121.com/ where you will find information, news and links to the leading providers of car insurance in the UK.