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

Fully comprehensive car insurance

Fully comprehensive automobile 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 automobile 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 car insurance insures the owner of the automobile against all manner of events – from an car crash to theft of the vehicle. The upside of this type of auto 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 car insurance details, or, worse, is uninsured, you can still claim against your auto insurance firm. Similarly, if your motorcar is stolen, then fully comprehensive automobile insurance allows you to claim against the auto insurance company.

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

Third Party, Fire & Theft

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

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 collision, the auto insurance organization 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 auto, the vehicle insurance group will not be required to pay. Likewise, if you are involved in an auto car crash with another automobile, 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 auto insurance

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

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