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

Fully comprehensive car insurance

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

However, do read your auto insurance plan carefully, as most car insurance firms refuse to insure 100% of the value of a motorcar, choosing instead to only insure 80%, or so, of the value. The auto insurance firms claim that doing this prevents fraudulent losses of automobile 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 vehicle insurance is a middle of the road vehicle 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 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 collision, the 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 auto, the auto insurance company will not be required to pay. Likewise, if you are involved in an car chance event with another auto, and are not at fault, your automobile 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 auto.

Third Party automobile insurance

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

Specialized vehicle insurance