So, what are the dissimilar types of car insurance
options available?
Fully comprehensive auto insurance
Fully comprehensive insurance is without doubt the
most expensive. However, with so many vehicles financed by finance company,
it is also probably the most common type of vehicle 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
car insurance insures the owner of the automobile against all manner of
events – from an accident 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 auto, who is at fault, doesn’t give you his vehicle
insurance details, or, worse, is uninsured, you can still claim against your
insurance organization. Similarly, if your automobile is stolen, then fully
comprehensive car insurance allows you to claim against the insurance
company.
However, do read your auto insurance plan carefully,
as most vehicle 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 firms claim that doing this prevents fraudulent losses of car
where the owner of the automobile either no longer wants the auto, or is
encountering financial difficulty.
Third Party, Fire & Theft
Third party, fire & theft auto insurance is a middle
of the road 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 motorcar.
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 collision, the vehicle insurance group is
only required to pay-out if you are at fault, and you hit another
automobile. So, in the event that you hit a wall, or only damage your
automobile, the auto insurance group will not be required to pay. Likewise,
if you are involved in an car car accident with another automobile, and are
not at fault, your vehicle insurance organization will not be required to
pay-out, regardless of whether or not the other person has sufficient auto
insurance to pay for the damage done to your car.
Third Party auto insurance
Third party car insurance is the ‘basic’ type of
automobile insurance, and only covers circumstances where you are involved
in a automobile fortuity, 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 auto insurance you can purchase. That
said, this type of automobile insurance is usually only purchased by those
car owners who have an old auto with little or no value.
Specialized auto insurance
Finally, strictly speaking any automobile 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’ car insurance usually has all of the benefits of
fully comprehensive auto insurance, one significant disadvantage that
classic 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.