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

Fully comprehensive car insurance

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

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

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

Third Party, Fire & Theft

Third party, fire & theft car insurance is a middle of the road vehicle 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 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 motorcar. So, in the event that you hit a wall, or only damage your car, the automobile insurance firm will not be required to pay. Likewise, if you are involved in an car car accident with another motorcar, and are not at fault, your vehicle insurance firm 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 auto.

Third Party vehicle insurance

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

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