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

Fully comprehensive automobile insurance

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

In short, as its name suggests, fully comprehensive automobile insurance insures the owner of the car against all manner of events – from an fortuity to theft of the auto. 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 car, who is at fault, doesn’t give you his auto insurance details, or, worse, is uninsured, you can still claim against your insurance firm. Similarly, if your car is stolen, then fully comprehensive auto insurance allows you to claim against the car insurance company.

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

Third Party, Fire & Theft

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

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

Third Party insurance

Third party vehicle insurance is the ‘basic’ type of auto insurance, and only covers circumstances where you are involved in a vehicle car crash, are at fault, and hit a third party. In all other events, the insurance group 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 auto owners who have an old auto with little or no value.

Specialized automobile insurance