Basic car insurance offers minimal coverage when it comes to your vehicle. This coverage includes two areas, bodily injury and property damage. Bodily injury liability means that the insured person is protected if they injure or kill another person while on the road. Note that this only covers third parties and it does not extend to the insured man or woman who is driving the automobile. Property damage liability takes care of another person's property such as real estate or a second vehicle. Keep in mind that this coverage does not protect your car in case of an accident. The sole purpose of a basic car insurance policy is to look after third parties who are involved in an accident. This very simple plan will protect you from getting sued if you injure someone else or damage their property.
This type of basic coverage has severe limitations however, and most people generally opt for a more comprehensive version. Taking out one of these car insurance policies will not cover your own vehicle in case of a collision or if it experiences damage from events such as fires, hailstorms, falling objects or vandalism. You will also not receive any personal injury protection which covers the driver and passengers in case anyone is harmed. It is for these reasons that these types of plans are very risky for all involved. While they are very affordable and protect third parties, they offer no safety net for the insured person, their passengers or their automobile. These limitations have resulted in the basic car insurance policy becoming less popular as the general population moves to coverage which offers a greater degree of protection and better peace of mind.
Because of this lack of popularity, some insurance companies are phasing out their basic auto policies. More consumers are opting to sign up for full or comprehensive insurance and so the basic models are less in demand. There is also the issue of third party insurance being compulsory within the USA. While basic plans cover all these mandatory points, most people are choosing something offering more protection. Of course, this depends on the company that you are dealing with and some may still provide basic car insurance policies. However, because of their risky nature plus their decline in popularity, these companies are few and far between nowadays. If you are still interested in these minimalistic plans, ask your insurance provider if they can supply you with basic coverage. Be warned that these policies will not give you or your car any protection if an accident does occur and you will be forced to pay for damages to your person and property out of your own pocket.