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

Fully comprehensive auto insurance

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

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

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

Third Party, Fire & Theft

Third party, fire & theft automobile insurance is a middle of the road automobile 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 motorcar.

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 crash, the car insurance group 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 car accident with another auto, and are not at fault, your car insurance firm 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 vehicle insurance is the ‘basic’ type of insurance, and only covers circumstances where you are involved in a auto collision, are at fault, and hit a third party. In all other events, the 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 car owners who have an old motorcar with little or no value.

Specialized vehicle insurance