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

Fully comprehensive auto insurance

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

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

However, do read your car insurance plan carefully, as most insurance organizations refuse to insure 100% of the value of a car, choosing instead to only insure 80%, or so, of the value. The auto insurance firms claim that doing this prevents fraudulent losses of car where the owner of the automobile 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 auto 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 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 chance event, the auto insurance firm 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 automobile, the auto insurance group will not be required to pay. Likewise, if you are involved in an car car accident with another automobile, 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 vehicle insurance to pay for the damage done to your vehicle.

Third Party car insurance

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

Specialized automobile insurance