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

Fully comprehensive insurance

Fully comprehensive vehicle insurance is without doubt the most expensive. However, with so many autos financed by finance firm, it is also probably the most common type of automobile 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 auto insurance insures the owner of the auto against all manner of events – from an car accident 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 automobile, who is at fault, doesn’t give you his auto insurance details, or, worse, is uninsured, you can still claim against your vehicle insurance firm. Similarly, if your auto is stolen, then fully comprehensive auto insurance allows you to claim against the car insurance group.

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

Third Party, Fire & Theft

Third party, fire & theft car insurance is a middle of the road car 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 collision, the car insurance firm is only required to pay-out if you are at fault, and you hit another car. 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 automobile accident with another vehicle, and are not at fault, your auto insurance organization will not be required to pay-out, regardless of whether or not the other person has sufficient insurance to pay for the damage done to your motorcar.

Third Party insurance

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

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