So, what are the dissimilar types of auto 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 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 insurance insures the owner of the vehicle against all manner of events – from an accident to theft of the vehicle. The upside of this type of vehicle 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 car insurance details, or, worse, is uninsured, you can still claim against your vehicle insurance organization. Similarly, if your car is stolen, then fully comprehensive auto insurance allows you to claim against the automobile insurance group.

However, do read your automobile insurance plan carefully, as most auto insurance companies refuse to insure 100% of the value of a automobile, choosing instead to only insure 80%, or so, of the value. The insurance groups claim that doing this prevents fraudulent losses of vehicle where the owner of the vehicle either no longer wants the car, 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 automobile loans, but who still have a certain level of intrinsic value in their car.

Under this type of 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 vehicle insurance company is only required to pay-out if you are at fault, and you hit another auto. So, in the event that you hit a wall, or only damage your motorcar, the automobile insurance company will not be required to pay. Likewise, if you are involved in an auto fortuity with another automobile, and are not at fault, your car 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 vehicle.

Third Party automobile insurance

Third party vehicle insurance is the ‘basic’ type of automobile insurance, and only covers circumstances where you are involved in a auto collision, 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 car insurance you can purchase. That said, this type of vehicle insurance is usually only purchased by those automobile owners who have an old car with little or no value.

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