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

Fully comprehensive car 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 insurance – as the finance group make it a requirement that the owner insure their car fully comprehensive.

In short, as its name suggests, fully comprehensive automobile insurance insures the owner of the motorcar against all manner of events – from an car accident to theft of the motorcar. 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 insurance group. Similarly, if your auto is stolen, then fully comprehensive auto insurance allows you to claim against the automobile insurance organization.

However, do read your auto insurance plan carefully, as most car insurance groups refuse to insure 100% of the value of a motorcar, choosing instead to only insure 80%, or so, of the value. The auto insurance organizations claim that doing this prevents fraudulent losses of automobile 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 insurance is a middle of the road vehicle insurance package popular with those who have already paid off their car loans, but who still have a certain level of intrinsic value in their automobile.

Under this type of automobile 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 organization is only required to pay-out if you are at fault, and you hit another motorcar. So, in the event that you hit a wall, or only damage your vehicle, the insurance firm will not be required to pay. Likewise, if you are involved in an car car crash with another car, and are not at fault, your vehicle insurance organization will not be required to pay-out, regardless of whether or not the other person has sufficient car insurance to pay for the damage done to your auto.

Third Party insurance

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

Specialized automobile insurance