Fully comprehensive vehicle insurance

Fully comprehensive automobile insurance is without doubt the most expensive. However, with so many autos financed by finance organizations, it is also probably the most common type of auto insurance – as the finance organizations make it a requirement that the owner insure their automobile fully comprehensive.

In short, as its name suggests, fully comprehensive auto insurance insures the owner of the vehicle against all manner of events – from an accident to theft of the automobile. The upside of this type of vehicle insurance is there is no need to show ‘fault’ in order to claim. So, if you have an accident, 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 auto insurance firm. Similarly, if your vehicle is stolen, then fully comprehensive automobile insurance allows you to claim against the vehicle insurance group.

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

Third Party, Fire & Theft

Third party, fire & theft auto insurance is a middle of the road automobile 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 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 fender bender, the 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 vehicle insurance company will not be required to pay. Likewise, if you are involved in an fender bender with another car, and are not at fault, your automobile 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 vehicle.

Third Party vehicle insurance

Third party automobile insurance is the ‘basic’ type of auto insurance, and only covers circumstances where you are involved in an car accident, are at fault, and hit a third party. In all other events, the automobile insurance firm 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 car insurance is usually only purchased by those auto owners who have an old vehicle with little or no value.

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