One of the biggest problems faced by novice car owners is buying car insurance. With the endless technical jargon and confusing packages a new owner is at complete loss as to what to buy to protect his car. Also the fact that car insurance is expensive and a car also comes with various other expenses like road tax expense, servicing costs, MOT, repair expenses etc. buying the right type of car insurance can be extremely complex. Once this jargon and mystique is brushed aside the owner will discover that there are 4 basic types of insurance coverage. The owner can choose for himself the right type of insurance coverage from these four types which would help him in the long run and also cover his add on expenses.

The first type of car insurance is known as Personal Injury Protection. It is basically a medical policy which covers the person’s health and well-being in whichever vehicle he travels even if that vehicle is not is own. If the person gets involved in a crash then this car insurance will take care of the medical bills up to a set limit. This limit varies according to the law and also on the owner’s preference.

The second type of insurance is Collision. It is regarded as optional by government authorities but most of the companies giving auto loans demand for this type of car insurance. This insurance covers damages in case of an accident when the owner is at fault. It will either provide a loan to pay off the damages at a fair market value or will pay for the damages itself up to the fair market price of the car.

The third type of car insurance is Liability. This is the most important coverage for the driver. It covers the damage that a motorist may cause to the other person or his property in case of a crash. The minimum limit for paying for the damages is normally decided by law while the upper limit is decided by the buyer of the policy.

The last type of coverage is Comprehensive car insurance. The law does not force a person to get this coverage but companies usually insist on taking such an insurance so as to safeguard not only you but also their investment. This insurance covers all incidents that can take place without a crash for example: natural catastrophes, vandalism, fire etc. A person not taking this insurance will not only be in extreme debt but also will not be able to drive his car.

It is not imperative to buy all these insurance but it is always prudent to take them up. Since anything can happen on the streets it is just more sensible to be completely protected.