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

Fully comprehensive auto insurance

Fully comprehensive automobile insurance is without doubt the most expensive. However, with so many automobiles financed by finance organization, it is also probably the most common type of car insurance – as the finance firm 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 vehicle. 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 vehicle insurance group. Similarly, if your automobile is stolen, then fully comprehensive insurance allows you to claim against the insurance firm.

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

Third Party vehicle insurance

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

Specialized auto insurance