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

Fully comprehensive automobile insurance

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

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

Third Party, Fire & Theft

Third party, fire & theft automobile insurance is a middle of the road car 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 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 car accident, the auto insurance group is only required to pay-out if you are at fault, and you hit another car. So, in the event that you hit a wall, or only damage your auto, the automobile insurance company will not be required to pay. Likewise, if you are involved in an car collision with another car, and are not at fault, your vehicle insurance company will not be required to pay-out, regardless of whether or not the other person has sufficient automobile insurance to pay for the damage done to your vehicle.

Third Party automobile insurance

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

Specialized car insurance