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

Fully comprehensive auto insurance

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

In short, as its name suggests, fully comprehensive vehicle insurance insures the owner of the vehicle against all manner of events – from an car crash to theft of the car. The upside of this type of car 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 auto insurance company. Similarly, if your car is stolen, then fully comprehensive car insurance allows you to claim against the auto insurance firm.

However, do read your vehicle 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 car insurance organizations claim that doing this prevents fraudulent losses of automobile 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 vehicle insurance package popular with those who have already paid off their auto 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 car accident, the car insurance organization 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 automobile, the car insurance organization will not be required to pay. Likewise, if you are involved in an vehicle collision with another motorcar, and are not at fault, your insurance company 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 vehicle.

Third Party car insurance

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

Specialized auto insurance