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

Fully comprehensive vehicle insurance

Fully comprehensive car insurance is without doubt the most expensive. However, with so many autos financed by finance group, it is also probably the most common type of auto insurance – as the finance organization make it a requirement that the owner insure their auto 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 collision to theft of the car. 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 motorcar, who is at fault, doesn’t give you his vehicle insurance details, or, worse, is uninsured, you can still claim against your auto insurance organization. Similarly, if your motorcar is stolen, then fully comprehensive automobile insurance allows you to claim against the vehicle insurance organization.

However, do read your auto insurance plan carefully, as most automobile insurance firms 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 vehicle where the owner of the automobile either no longer wants the automobile, or is encountering financial difficulty.

Third Party, Fire & Theft

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

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

Third Party auto insurance

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

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