So, what are the dissimilar types of car insurance options available?

Fully comprehensive auto insurance

Fully comprehensive vehicle insurance is without doubt the most expensive. However, with so many automobiles financed by finance firm, it is also probably the most common type of vehicle insurance – as the finance organization make it a requirement that the owner insure their auto fully comprehensive.

In short, as its name suggests, fully comprehensive insurance insures the owner of the automobile against all manner of events – from an collision to theft of the car. The upside of this type of vehicle insurance is there is no need to show ‘fault’ in order to claim. So, if you have an fender bender, which is not your fault, and the owner of the other motorcar, who is at fault, doesn’t give you his car insurance details, or, worse, is uninsured, you can still claim against your car insurance organization. Similarly, if your auto is stolen, then fully comprehensive vehicle insurance allows you to claim against the vehicle insurance group.

However, do read your vehicle insurance plan carefully, as most automobile insurance firms refuse to insure 100% of the value of a car, choosing instead to only insure 80%, or so, of the value. The insurance groups claim that doing this prevents fraudulent losses of vehicle where the owner of the vehicle either no longer wants the motorcar, or is encountering financial difficulty.

Third Party, Fire & Theft

Third party, fire & theft auto insurance is a middle of the road car insurance package popular with those who have already paid off their auto loans, but who still have a certain level of intrinsic value in their automobile.

Under this type of automobile insurance, most of the pay-out events covered under fully comprehensive v are covered – such as fire & theft. However, in the event of an accident, the car insurance group is only required to pay-out if you are at fault, and you hit another motorcar. So, in the event that you hit a wall, or only damage your motorcar, the vehicle insurance company will not be required to pay. Likewise, if you are involved in an auto fortuity with another automobile, and are not at fault, your car insurance organization will not be required to pay-out, regardless of whether or not the other person has sufficient auto insurance to pay for the damage done to your car.

Third Party auto insurance

Third party vehicle insurance is the ‘basic’ type of vehicle insurance, and only covers circumstances where you are involved in a automobile collision, are at fault, and hit a third party. In all other events, the auto insurance company is not required to make a payment. As such, it is also the cheapest type of car insurance you can purchase. That said, this type of vehicle insurance is usually only purchased by those car owners who have an old car with little or no value.

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