Urban sprawl never used to be an issue. Even though the latest development might be miles from where you work or the nearest shops, this was never a problem. Most families owned two vehicles. Some three or more. No-one walked. Everyone just jumped in the nearest vehicle and off they went without a second thought until the price of gas rocketed up. Now we have the credit crunch and a recession just bottoming out. Car ownership has become an expensive proposition. Too expensive for some who have been reborn as a one-car family to cut their losses. The first step in crisis management is to find out which of your vehicles is the cheapest make and model to insure. Now balance that against the likely costs of maintenance and repair over the next twelve months. And which will sell for the highest price? When you know which vehicle you are keeping, maximize the number of discounts on the policy, including bundling auto and home together with the same insurer. Except, one vehicle for a busy family may not be practical. What are the options?

Many families talk to their neighbors and work out a carpool. This is reasonably easy to organize for routine journeys. But there is one slight problem. If you are going to carry passengers, you should have insurance to pay their medical costs should they be injured in an accident. It is not safe to drive your neighbors around on the state’s minimum liability cover. Then we come to the always difficult question of sharing the costs of the gas. If the passengers always pay something towards the cost of the journey, many insurers treat this as a business arrangement and require the vehicle owner to take out a commercial policy as a taxi. Needless to say, this turns a friendly social service into an expensive excuse to argue with your neighbors over prices. Of course, you could all agree to lie about the arrangement. But the stories can change rapidly if everyone ends up in a hospital and big bills are presented.

The second option is the new rental plans which site vehicles for rent by the hour in local garages. You book what you want over the internet, travel to the garage for the pick-up and drop it off at the same garage when your time is up. The cost per hour on the standard plans are attractive and, assuming you do not want a vehicle more than an average of one hour every day, you will save money on car ownership. But you do need to look carefully at the insurance offered in the standard plans. Some have poor cover of medical expenses for you as the driver and passengers. Others do not include the loss of use charge if the vehicle is off the road being repaired. Always read the small print. Summing up, finding insurance for a single vehicle means getting multiple auto insurance quotes and finding the one that works for you. If you are going to use your car to drive neighbors around, you also need to get auto insurance quotes to cover the additional liabilities. If you use one of the new rental plans, consider paying extra for LDW which gives more comprehensive protection against loss.

There are so many accidents people can have with their cars in daily life, in these cases liability insurance is beneficial to the user. In comparation between liability insurance and car insurance, liability insurance is compulsory giving more complete services than car insurance. In those cases, the insurance company would cover a percentage of the damages done to the person. The compensation for damages done to property is less significant.  There are some services offered: travel assistance, legal support and driver’s insurance.

In Spain driving insurance is compulsory and required by law. This has been done to avoid further problems when car accidents happen. For instance, liability insurance would cover a third party in case of an accident. Auto Insurance is highly important because even if the responsible for the accident claims bankruptcy, the third party involved will be compensated by the insurance company.

Auto insurance covers the driver of the vehicle from the damages that may be caused to third party drivers and their property.

This type of insurance covers the liability of the driver and the vehicle owner. This means that any person who drives will be covered even if it someone else is driving the vehicle. But if the driver is younger than 25 years and has a driver’s license that expired two years ago the insurance company may reduce the compensation if an incident occurs.

Some countries, like Spain, require liability insurance by law. This means that in order to drive your car you need to have it. This insurance guarantees that the insured will pay, through the insurance company, for the damage done to a third party.

Advantages: the insurance company pays for property and personal damage with the compensation limits set by law.

Nevertheless, liability insurance does not cover what happens to the car of the insured in the accident.

Who buys only Auto insurance? Those who have an impeccable driving record and are convinced they have little chance of an accident. Generally, they look for insurance that is not very expensive and that covers third parties in case of accident. If you buy a new vehicle, this insurance will not be enough because liability insurance does not give protection for the damages caused to your own car.

Liability insurance will not give coverage if the insured was involved in an accident while under the influence of alcohol or drugs or if the car was stolen.