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

Fully comprehensive vehicle insurance

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

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

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

Third Party, Fire & Theft

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

Under this type of 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 insurance group 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 car, the vehicle insurance firm will not be required to pay. Likewise, if you are involved in an auto fortuity with another car, 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 auto.

Third Party automobile insurance

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

Specialized vehicle insurance