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

Fully comprehensive automobile insurance

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

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

However, do read your vehicle 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 auto insurance organizations claim that doing this prevents fraudulent losses of vehicle where the owner of the automobile either no longer wants the auto, or is encountering financial difficulty.

Third Party, Fire & Theft

Third party, fire & theft vehicle 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 vehicle insurance, most of the pay-out events covered under fully comprehensive v are covered – such as fire & theft. However, in the event of an chance event, the car insurance group 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 auto, the car insurance organization will not be required to pay. Likewise, if you are involved in an car accident with another motorcar, and are not at fault, your car 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 automobile insurance

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

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