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

Fully comprehensive automobile insurance

Fully comprehensive automobile 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 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 insurance insures the owner of the automobile against all manner of events – from an chance event to theft of the automobile. 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 car, who is at fault, doesn’t give you his vehicle insurance details, or, worse, is uninsured, you can still claim against your insurance company. Similarly, if your motorcar is stolen, then fully comprehensive auto insurance allows you to claim against the car insurance group.

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

Third Party, Fire & Theft

Third party, fire & theft automobile insurance is a middle of the road car 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 auto.

Under this type of vehicle 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 automobile insurance company 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 insurance company will not be required to pay. Likewise, if you are involved in an car collision with another car, and are not at fault, your vehicle insurance company 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 vehicle.

Third Party insurance

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

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