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

Fully comprehensive car insurance

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

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

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

Third Party, Fire & Theft

Third party, fire & theft car insurance is a middle of the road 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 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 collision, the vehicle insurance company 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 auto insurance organization will not be required to pay. Likewise, if you are involved in an vehicle car accident with another motorcar, and are not at fault, your vehicle insurance organization will not be required to pay-out, regardless of whether or not the other person has sufficient car insurance to pay for the damage done to your car.

Third Party insurance

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

Specialized vehicle insurance