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

Fully comprehensive insurance

Fully comprehensive insurance is without doubt the most expensive. However, with so many vehicles financed by finance organization, it is also probably the most common type of insurance – as the finance group 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 car crash to theft of the car. The upside of this type of automobile 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 vehicle, who is at fault, doesn’t give you his insurance details, or, worse, is uninsured, you can still claim against your auto insurance group. Similarly, if your motorcar is stolen, then fully comprehensive car insurance allows you to claim against the vehicle insurance company.

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

Third Party, Fire & Theft

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

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 fortuity, the insurance group is only required to pay-out if you are at fault, and you hit another vehicle. So, in the event that you hit a wall, or only damage your car, the auto insurance group will not be required to pay. Likewise, if you are involved in an automobile accident with another car, and are not at fault, your auto insurance firm 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 motorcar.

Third Party insurance

Third party vehicle insurance is the ‘basic’ type of insurance, and only covers circumstances where you are involved in a motorcar 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 automobile insurance you can purchase. That said, this type of automobile insurance is usually only purchased by those motorcar owners who have an old auto with little or no value.

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