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

Fully comprehensive automobile insurance

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

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

Third Party, Fire & Theft

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

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 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 auto insurance firm will not be required to pay. Likewise, if you are involved in an vehicle collision with another automobile, and are not at fault, your insurance firm will not be required to pay-out, regardless of whether or not the other person has sufficient automobile insurance to pay for the damage done to your vehicle.

Third Party car insurance

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

Specialized auto insurance