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

Fully comprehensive auto insurance

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

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

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

Third Party, Fire & Theft

Third party, fire & theft auto insurance is a middle of the road vehicle insurance package popular with those who have already paid off their motorcar loans, but who still have a certain level of intrinsic value in their auto.

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 vehicle insurance firm is only required to pay-out if you are at fault, and you hit another vehicle. So, in the event that you hit a wall, or only damage your car, the car insurance group will not be required to pay. Likewise, if you are involved in an vehicle chance event with another automobile, and are not at fault, your auto insurance firm 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 vehicle.

Third Party car insurance

Third party insurance is the ‘basic’ type of insurance, and only covers circumstances where you are involved in a motorcar collision, are at fault, and hit a third party. In all other events, the vehicle insurance company 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 motorcar with little or no value.

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