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

Fully comprehensive auto insurance

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

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

Third Party, Fire & Theft

Third party, fire & theft vehicle insurance is a middle of the road car insurance package popular with those who have already paid off their vehicle loans, but who still have a certain level of intrinsic value in their vehicle.

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 insurance organization 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 motorcar, the vehicle insurance group will not be required to pay. Likewise, if you are involved in an vehicle collision with another auto, 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 vehicle insurance to pay for the damage done to your car.

Third Party auto insurance

Third party vehicle insurance is the ‘basic’ type of insurance, and only covers circumstances where you are involved in a motorcar car crash, 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 vehicle insurance you can purchase. That said, this type of car insurance is usually only purchased by those vehicle owners who have an old vehicle with little or no value.

Specialized vehicle insurance