This is a contract between the driver and an insurance company which establishes the conditions under which the company will pay the compensation corresponding to the policy chosen by the interested party.
The insurance policy must include all the coverages and assumptions that have been agreed with the insurer, as well as the compensation to which you will be entitled in the event of a claim, your personal details and the information of the insured car.
Auto insurance is a mechanism by which the risks related to the use of your vehicle are transferred from a natural or legal person to an insurance company. For example, payment to a third party in the event of a collision.
Types of car insurance
You need to insure your car, you don’t want to pay for what you won’t use, but you don’t want to give up or avoid services that you will soon miss. Knowing the types of insurance that exist and what each of them involves is the first step in choosing the perfect insurance for your car.
1. Third party insurance
This first type of policy is the simplest and most basic, as its name suggests. It is the minimum insurance that by law all cars must have in order to drive. This is known as third-party insurance or basic insurance.
All third party insurance must include the liability insurance required for driving. This type of cover covers material and personal damage caused to third parties by the insured car. The insured car and the driver himself are not covered by the compulsory insurance.
This basic insurance usually includes an extension of civil liability known as a supplementary civil liability which extends the insured’s civil liability insurance financially.
Liability for trailers and caravans, and for objects carried in the vehicle, is also usually included in third-party insurance. Along with legal defense, damage claims and travel assistance.
Driver’s insurance is also beginning to be incorporated into third-party policies but this is not always the case, so it is important to take this into account when comparing and choosing your car insurance.
2. Extended third-party insurance
In accordance with the needs and demands of today’s drivers, insurance companies have increased their offer of insurance to third parties by offering a type of policy that is somewhat less basic, but not as complete as the so-called all-risk policies.
In this group of extended or complete third party car insurance policies, you will find a wide range of coverages that you can choose independently or in the form of packages, depending on the different companies. Coverage for total or partial breakage of windows or windscreens, fire insurance or repair of damage to the car, if it runs over an animal, for example, are the most common in extended third-party insurance.
This type of third-party insurance with extended cover is very interesting so that the driver can complete his or her protection and that of his or her vehicle according to use, priorities and needs, without having to give up anything essential, even if you choose a third-party policy.
3. All risks
Comprehensive car insurance offers a comprehensive range of cover, assistance and services for the driver and his vehicle. They include, of course, the compulsory ones such as civil liability insurance, but also all those that complete third-party policies such as the breakage of windows or the theft of the vehicle.
The comprehensive policies include coverages that do cover both the driver and the insured car itself in the event of being involved in an accident, regardless of whether or not it is the cause of the accident; likewise, even if there are no third parties, such as in the case of blows or damage during parking, the insured car is also covered against all risks in these circumstances.
Practical services and services commonly used by drivers, such as the replacement vehicle or the defense of traffic fines, are also facilities that are enjoyed by holders of comprehensive car insurance.
There are two basic types of comprehensive insurance. You can find all-risk policies with or without excess. Insurance with excess may be cheaper in principle, but their disadvantage is that they only cover a part of the costs related to the claim.
Fully comprehensive insurance without excess is the most complete and effective insurance that can be taken out to protect a vehicle, the responsibility for the protection of the insured car falls exclusively on and integrates on.
It is important to keep in mind that each company establishes its policies according to its own criteria, so they will vary depending on the insurer. When taking out a car insurance policy, it is necessary to consult with your insurance company about any doubts you may have and to read carefully what it is that you are going to take out without exceeding the needs of each one.
What you should bear in mind before taking out car insurance
Finding the best car insurance isn’t always easy. There are currently several similar options on the market that have different coverage or different limits on their guarantees. Therefore, before contracting a policy it is necessary to pay attention to a certain aspect.
To help you choose the policy that best suits your needs, we will tell you the questions to ask yourself before you sign the policy:
What use are you making of the car?
You should consider whether you use your car often or only on weekends or sporadically. This way you will know if you will need to have certain coverages such as roadside assistance
What are the vehicle’s needs?
It is not the same to take out insurance for a new car as for one that is years old. Analyze the value of your car and the need to include coverages such as theft and assess the limits of compensation that include the different companies.
What type of contract do you want?
Third party insurance covers compulsory liability, i.e. damage we cause to third parties but not to our own vehicle. It is, therefore, a good choice for older vehicles with low value. Some of these policies do not include roadside assistance, although they have a very tight premium. Extended third-party insurance usually adds to the above guarantees such as glass breakage or theft and fire.