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

Fully comprehensive automobile insurance

Fully comprehensive vehicle insurance is without doubt the most expensive. However, with so many vehicles financed by finance company, it is also probably the most common type of vehicle insurance – as the finance company 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 motorcar against all manner of events – from an chance event to theft of the automobile. The upside of this type of auto 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 automobile, who is at fault, doesn’t give you his insurance details, or, worse, is uninsured, you can still claim against your auto insurance group. Similarly, if your motorcar is stolen, then fully comprehensive automobile insurance allows you to claim against the automobile insurance company.

However, do read your vehicle insurance plan carefully, as most vehicle insurance companys refuse to insure 100% of the value of a car, choosing instead to only insure 80%, or so, of the value. The car insurance organizations claim that doing this prevents fraudulent losses of motorcar where the owner of the auto either no longer wants the motorcar, 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 motorcar 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 fortuity, the car insurance firm 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 car, the car insurance organization will not be required to pay. Likewise, if you are involved in an vehicle car crash with another car, and are not at fault, your insurance company will not be required to pay-out, regardless of whether or not the other person has sufficient insurance to pay for the damage done to your automobile.

Third Party auto insurance

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

Specialized auto insurance