Law requires that all vehicles used on public roads or highways be insured. In this way all drivers and passengers on the roadways are protected. With new laws enacted in recent years, there are fewer uninsured drivers on the roads. With the enforcement of this insurance law, automobile insurance has helped many consumers who have been involved in accidents.

Today, if you operate a vehicle on any public road you must have insurance. If you have an accident and don't have insurance it is a crime and punishable by, not only criminal action against you, but possible civil action as well; you may be held financially liable to cover the damages, both personal and property. Depending on the circumstances, a lawsuit can cost an awful lot of money.

As we talk about liability here, it is good to know that in an accident scenario, while driving a vehicle insured in your name, if you are found under alcohol or drug influence, you will not be provided any cover by the insurance company. In fact, the insurance company is more likely to withdraw the cover, if they find out that you were driving the vehicle under influence of alcohol or drugs when the accident occurred. It is considered extremely negligent to drive when intoxicated and such negligence is the sole responsibility of the person insured and not the insurance company.

Third party policies are available to consumers from every car insurance company. If you have been found at fault for damage resulting from and accident, or injury from an accident, you need coverage from a liability policy. Depending on which policy you purchase, you may obtain different levels of coverage. Make sure you thoroughly read your policy and understand what it says because anything not specifically covered by the policy is something that you will have to pay for out of your own pocket.

Third party car insurance means you are insured against death or injury (caused by your vehicle) to pedestrians, occupant of other vehicles, and outsiders other than passengers, for unlimited amounts. Passengers of private vehicles and pillion riders are also deemed covered.

The automobile insurance that pays for damage due to robbery, violence, collision, and injury to others is called comprehensive insurance. In the case of an accident, it protects not only you but also the passengers. The expenses for medical treatment or funeral function for the passengers as well as for others involved in the accident will be covered by this policy.

Based on the information about car insurance given above, you can see that you can save money by getting the minimum third party insurance. However, that option will only save you money if you are not in an accident and your car is never stolen or damaged. To make a good decision, you need to compare your possible savings with the likelihood that you will be in an accident or have your car stolen or damaged. It's possible that in the long run comprehensive car insurance will save you more money.