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

Fully comprehensive car insurance

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

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

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

Third Party, Fire & Theft

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

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 car crash, the vehicle insurance firm 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 automobile, the auto insurance group will not be required to pay. Likewise, if you are involved in an automobile accident with another vehicle, and are not at fault, your auto insurance group 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 vehicle.

Third Party insurance

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

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