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

Fully comprehensive vehicle insurance

Fully comprehensive auto 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 vehicle fully comprehensive.

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

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

Third Party, Fire & Theft

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

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

Third Party automobile insurance

Third party car insurance is the ‘basic’ type of car 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 automobile 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 car insurance is usually only purchased by those auto owners who have an old auto with little or no value.

Specialized automobile insurance