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

Fully comprehensive insurance

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

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

Third Party, Fire & Theft

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

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 chance event, the auto insurance firm 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 vehicle, the insurance organization will not be required to pay. Likewise, if you are involved in an vehicle car crash with another car, 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 insurance to pay for the damage done to your auto.

Third Party vehicle insurance

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

Specialized vehicle insurance

Finally, strictly speaking any auto over 25 years old is considered a ‘classic’. As such, this type of car should be insured as a classic motorcar – with all of the benefits and requirements of such. Although ‘classic’ insurance usually has all of the benefits of fully comprehensive car insurance, one significant disadvantage that classic car insurance has is that you are usually limited to the number of road miles you can drive in any given year – so check your plan carefully.

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