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

Fully comprehensive car insurance

Fully comprehensive auto insurance is without doubt the most expensive. However, with so many automobiles financed by finance organization, it is also probably the most common type of insurance – as the finance company make it a requirement that the owner insure their auto fully comprehensive.

In short, as its name suggests, fully comprehensive automobile insurance insures the owner of the vehicle against all manner of events – from an chance event to theft of the car. 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 vehicle, who is at fault, doesn’t give you his vehicle insurance details, or, worse, is uninsured, you can still claim against your vehicle insurance company. Similarly, if your vehicle is stolen, then fully comprehensive insurance allows you to claim against the automobile insurance group.

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

Third Party, Fire & Theft

Third party, fire & theft car insurance is a middle of the road auto 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 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 chance event, the vehicle insurance company is only required to pay-out if you are at fault, and you hit another automobile. So, in the event that you hit a wall, or only damage your vehicle, the car insurance company will not be required to pay. Likewise, if you are involved in an car accident with another motorcar, and are not at fault, your automobile 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 vehicle.

Third Party car insurance

Third party automobile insurance is the ‘basic’ type of auto insurance, and only covers circumstances where you are involved in a vehicle collision, 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 automobile insurance is usually only purchased by those motorcar owners who have an old motorcar with little or no value.

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