If you own a automobile, no doubt you’ll understand when people sit around complaining about the monetary value of their insurance. But, the fact is that the price of you automobile insurance is going to depend as much on what type of vehicle insurance you buy as it is on what vehicle insurance company you use to insure your car.
So, what are the dissimilar types of automobile insurance options available?
Fully comprehensive insurance
Fully comprehensive vehicle insurance is without doubt the most expensive. However, with so many autos financed by finance firm, it is also probably the most common type of automobile insurance, as the finance group make it a requirement that the owner insure their auto fully comprehensive.
In short, as its name suggests, fully comprehensive auto insurance insures the owner of the auto against all manner of events from an car accident to theft of the auto. 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 fender bender, which is not your fault, and the owner of the other automobile, who is at fault, doesn’t give you his auto insurance details, or, worse, is uninsured, you can still claim against your vehicle insurance firm. Similarly, if your auto is stolen, then fully comprehensive auto insurance allows you to claim against the car insurance group.
However, do read your insurance plan carefully, as most insurance companys refuse to insure 100% of the value of a motorcar, choosing instead to only insure 80%, or so, of the value. The vehicle insurance firms claim that doing this prevents fraudulent losses of motorcar where the owner of the car either no longer wants the motorcar, or is encountering financial difficulty.
Third Party, Fire & Theft
Third party, fire & theft car 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 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 collision, the car 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 car, the vehicle insurance group will not be required to pay. Likewise, if you are involved in an automobile accident with another vehicle, and are not at fault, your auto insurance organization 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 motorcar.
Third Party insurance
Third party insurance is the basic type of automobile insurance, and only covers circumstances where you are involved in a auto car crash, are at fault, and hit a third party. In all other events, the auto insurance group 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 vehicle insurance is usually only purchased by those vehicle owners who have an old car with little or no value.
Finally, strictly speaking any car over 25 years old is considered a classic. As such, this type of auto should be insured as a classic auto with all of the benefits and requirements of such. Although classic vehicle insurance usually has all of the benefits of fully comprehensive automobile insurance, one significant disadvantage that classic vehicle 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.