Vehicle insurance can be of many types depending on several facts: the vehicle you drive may be your property, or it can be rented, or leased by your employer. In each case the coverage is different, the limits, exclusions, and extras should be studied beforehand. As any type of insurance, this has a standard policy which can be developed later by many additional premiums and supplements according to your actual needs. These additional packages may refer to damages different from general accidents and collisions: they include burglary, theft, and even fire damage. Standard vehicle insurance is mandatory for all registered vehicles in many countries; this usually means an annual coverage for all car owners which should be renewed each year.

There are a lot of insurance companies from which you can purchase your policy, but before beginning to request information try to decide first what kind of policy best suits your needs. Vehicle insurance is purchased in case of cars, motorcycles, trucks and any other types of vehicles owned, rented or taken in custody. In most countries laws and regulations refer not only to the vehicle but also to the driver, however the degree of each differs a lot.

The levels of vehicle insurance coverage are the following:

1. The insurance regarding the vehicle (auto, motorcycle, truck etc)
2. The insurance regarding the person/driver
3. Third party only insurance (which is the minimum, basic policy)

The jurisdiction of each country defines very clearly the levels of vehicle insurance, the facilities of the basic packages, as well as the general features of damage and liability coverages. For supplementary policies a lot of factors must be taken into consideration. Companies usually pay attention to the following issues while shaping their premium packages:

- The personality of the driver:
a. gender (men drive more, thus they represent a higher accident risk),
b. age (teenagers and students have many discounts),
c. unmarried versus married (unmarried people are charged higher premiums),
d. driving history (surely a clear driving history brings about more discounts and benefits)

- The type of the vehicle: higher premiums are accorded to sport cars, motorcycles, than to luxury cars.

- Vehicle usage: estimated distance driven in a year.

Here are the most important types of vehicle insurance policies:

1. Full Coverage: this includes collision and non-collision policies. In case of damage happening as a result of collision, a financial support is provided. This is essential, as repairs require a great amount of money, not to speak about the full cash value of irreparable vehicles. Non-collision policies offer coverage in case of incidents like theft, burglary, vandalism, fire as well as natural disasters (extreme weather conditions).

2. Property damage liability: this offers coverage in case you are responsible for some damage or collision, in other words when you are the one who causes an accident.

3. Rental policy: means a paying back of the rental expenses in case the vehicle must be repaired due to some damage covered.

4. Underinsured or uninsured policy: this offers you protection if you suffer bodily and/or property damage from a third party which doesn’t have insurance at all, or has a limited insurance only. Thus, your medical bills and hospital treatment is covered.

5. Bodily injury or death liability: this offers coverage for the medical expenses of the person whose health condition is affected in the collision or accident caused by you, as well as funeral expenses in case of death.

6. Road Assistance or towing: this includes both accident and non-accident related tows, like flat tires, mechanical problems, etc.

Before selecting the type of coverage which is the most convenient for you, try to shop around and request some quotes from the websites of insurance companies. Also think about the factor how much your pocket can afford. The most expensive policy is not always the best solution: sometimes you can get the same policy for a lower cost. It is recommended to choose a flexible coverage, so you can easily make some online operations: add or remove vehicles, and drivers, change addresses and make payments.