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

Fully comprehensive vehicle insurance

Fully comprehensive insurance is without doubt the most expensive. However, with so many automobiles financed by finance company, it is also probably the most common type of vehicle insurance – as the finance organization 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 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 automobile, who is at fault, doesn’t give you his auto insurance details, or, worse, is uninsured, you can still claim against your car insurance company. Similarly, if your auto is stolen, then fully comprehensive auto insurance allows you to claim against the automobile insurance organization.

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

Third Party, Fire & Theft

Third party, fire & theft car insurance is a middle of the road vehicle 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 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 insurance group 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 automobile chance event with another vehicle, and are not at fault, your auto insurance group 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 motorcar.

Third Party car insurance

Third party insurance is the ‘basic’ type of vehicle insurance, and only covers circumstances where you are involved in a car fortuity, are at fault, and hit a third party. In all other events, the automobile insurance company is not required to make a payment. As such, it is also the cheapest type of auto insurance you can purchase. That said, this type of car insurance is usually only purchased by those automobile owners who have an old auto with little or no value.

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