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There are 3 basic car insurances available on the market:
Fully Comprehensive Insurance
These types of car insurances are usually the most expensive, but are also the most
common due to finance companies insisting that full cover be taken out to protect
them from incurring losses.
Comprehensive
car insurance covers the owner
of the car against various types of events including accidents and theft. With this
type of policy there is no need to prove ‘fault’ by another party in order to claim.
You can claim against your own insurance company.
Most
vehicle insurance providers do not provide
100% cover for the value of the vehicle and usually only provide 80% cover. They
do this in order to prevent insurance fraud by vehicle owners who want to get rid
of the vehicle or who can no longer afford payments on the vehicle.
Third Party, Fire & Theft Insurance
These types of insurances are popular with people who have paid off their motor
loans, but who still want a certain level of cover for their vehicle.
With this type of policy the insurance company only needs to pay-out to another
driver if you caused the accident. If you did not cause the accident, the insurance
company will not pay out to you or the other parties involved. If the driver of
the vehicle that caused the accident is not insured then you may be unable to get
compensation.
Cover is provided at the same level as comprehensive insurance for things like fire
and theft.
Third Party Insurance
This is a very basic type of insurance that pays out to the owner of another vehicle
should you cause an accident and cause damages. All other incidents are not covered.
This is the cheapest type of car insurance and is usually suitable for vehicles
that are not worth much.