Cars can run through a gamut of damages, making the financial difficulty great for those without insurance. In exchange for paid premiums every year, many forms of coverage could be given including coverage against collisions, liability coverage, theft, bodily injury liability, etc. In addition, car insurance can protect its owners from threatening lawsuits by offering the finances to battle in court.

Car insurance policies are split into two types: first party insurance and third party liability. In layman?s terms, first party refers to the owner of the car. The ?third party? includes the people involved in the accident. First party insurance covers all of the damages caused by the driver of the insured automobile, whereas vice versa for third party liability. The law encourages all drivers to have a third party liability plan, since a large percentage of car accidents are caused by someone else.

Bodily injury and property damage makes up the two major kinds of third party liability policies. Bodily injury liability awards medical expense compensation of those affected by the driver of the insured car. Your property damage policy covers the dents and bent hoods you caused in a multiple car wreck on Interstate 65. In order to cash in on insurance, the policy owner must file a claim immediately following the accident. Filing claims involve keeping accurate accident records and providing proof of damage and level of responsibility. With more proof comes a better insurance estimate for your accident, which is what you should strive to record detailed information. Right after accidents, it is normal for each vehicle?s driver to collect each others information (license plate, insurance ID) and file a police report with names of witnesses. Of course, a strategically placed phone call to your personal insurance agent would also expedite the recovery process.