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

Fully comprehensive car insurance

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

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

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

Under this type of auto insurance, most of the pay-out events covered under fully comprehensive v are covered – such as fire & theft. However, in the event of an car crash, the insurance organization 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 vehicle, the automobile insurance firm will not be required to pay. Likewise, if you are involved in an automobile accident with another automobile, 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 auto.

Third Party car insurance

Third party car 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 auto insurance firm 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 car owners who have an old automobile with little or no value.

Specialized automobile insurance