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

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

In short, as its name suggests, fully comprehensive auto insurance insures the owner of the automobile against all manner of events – from an car accident to theft of the automobile. The upside of this type of car 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 auto insurance details, or, worse, is uninsured, you can still claim against your insurance firm. Similarly, if your automobile is stolen, then fully comprehensive insurance allows you to claim against the automobile insurance group.

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

Third Party, Fire & Theft

Third party, fire & theft auto insurance is a middle of the road insurance package popular with those who have already paid off their automobile 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 chance event, the auto insurance firm is only required to pay-out if you are at fault, and you hit another car. So, in the event that you hit a wall, or only damage your automobile, the automobile insurance group will not be required to pay. Likewise, if you are involved in an automobile accident with another car, 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 automobile insurance to pay for the damage done to your automobile.

Third Party auto insurance

Third party auto insurance is the ‘basic’ type of automobile insurance, and only covers circumstances where you are involved in a auto accident, are at fault, and hit a third party. In all other events, the insurance group is not required to make a payment. As such, it is also the cheapest type of auto insurance you can purchase. That said, this type of car insurance is usually only purchased by those vehicle owners who have an old car with little or no value.

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