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

Fully comprehensive insurance

Fully comprehensive 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 organization make it a requirement that the owner insure their car fully comprehensive.

In short, as its name suggests, fully comprehensive vehicle insurance insures the owner of the car against all manner of events – from an fortuity to theft of the car. The upside of this type of auto 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 insurance details, or, worse, is uninsured, you can still claim against your auto insurance company. Similarly, if your automobile is stolen, then fully comprehensive vehicle insurance allows you to claim against the vehicle insurance organization.

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

Third Party, Fire & Theft

Third party, fire & theft automobile 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 car.

Under this type of auto 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 auto insurance firm 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 auto, the vehicle insurance group will not be required to pay. Likewise, if you are involved in an vehicle car crash with another motorcar, and are not at fault, your auto insurance company will not be required to pay-out, regardless of whether or not the other person has sufficient vehicle insurance to pay for the damage done to your vehicle.

Third Party auto insurance

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

Specialized automobile insurance