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

Fully comprehensive automobile insurance

Fully comprehensive 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 car insurance – as the finance group make it a requirement that the owner insure their motorcar fully comprehensive.

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

However, do read your vehicle insurance plan carefully, as most automobile 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 firms claim that doing this prevents fraudulent losses of automobile where the owner of the auto 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 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 auto 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 auto 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 motorcar, the car insurance group will not be required to pay. Likewise, if you are involved in an vehicle car accident with another car, and are not at fault, your insurance group 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 automobile.

Third Party automobile insurance

Third party insurance is the ‘basic’ type of vehicle insurance, and only covers circumstances where you are involved in a car accident, are at fault, and hit a third party. In all other events, the insurance organization is not required to make a payment. As such, it is also the cheapest type of auto insurance you can purchase. That said, this type of car insurance is usually only purchased by those automobile owners who have an old motorcar with little or no value.

Specialized auto insurance