Before insuring your vehicle, take the time to find out what you will be paying and the terms and conditions of your insurance contract. You should also ask questions about the extent of cover, how the premium is calculated, how it works and so on. The fact is, they may seem insignificant, but they're details you'd be better off knowing. So here's what you need to know about your car insurance to make sure you're properly covered.
Car insurance: definition
The principle behind car insurance is quite simple. The aim is to protect the insured against various risks in exchange for the payment of a premium. The only compulsory cover provided by mobile insurance is third-party liability cover. This covers damage caused by the driver to a third party: a pedestrian, another vehicle, a passenger in your vehicle or in a third-party vehicle.
Third-party liability covers everything except the driver and his car. That's why it's called third-party insurance.
More often than not, you will find that this minimum cover is backed up by other optional, paid-for cover to cover other risks. Note that some of these coverages protect the vehicle against specific risks such as fire, glass breakage, theft, terrorist attack, natural disasters, etc.
Personal and vehicle assistance cover is also an option that allows you to benefit from immediate support from your insurance company in the event of a breakdown or accident. These options are often included in the 'all risks' package. When choosing your cover, in addition to that required by law, you'll need to take into account your budget, the value of your vehicle, your risk aversion and the financial impact this could have.
What does car insurance cover?
As with all types of insurance, car insurance includes both compulsory and optional cover. To benefit from basic cover, you need to take out third-party insurance. There is also an all-risk insurance policy, which includes a number of additional cover options. As far as compulsory cover is concerned, we only have third-party liability, which covers material damage and bodily injury that may be caused by the vehicle to a third party.
If you have opted for insurance with additional cover, you can benefit from more extensive protection. Extended cover usually includes bodily injury to the driver in the event of an accident, theft and glass breakage.
It should be noted that drivers can take out car insurance to protect themselves against natural disasters. It should also be said that breakdown and assistance services are among the services that can really help a driver.
Is car insurance compulsory?
The real question is: what are the risks of driving without car insurance? When you've had enough of car insurance, you're often tempted to drive without it. This is a serious mistake, because it constitutes a "lack of insurance". If you get caught, the penalties go beyond a simple fine. The fine for this type of offence is €3,750, which can be combined with a 3-year licence suspension and confiscation of the vehicle. Additional penalties may also apply, such as community service, cancellation of the licence with a ban on holding it for up to 3 years and, above all, a ban on driving certain types of land vehicle.
What's more, not having insurance for an extended period of time can be a serious disadvantage. If your vehicle has been without insurance for a long time, it can be difficult to find a new insurer.
The worst-case scenario is when you are involved in an accident even though you are not insured. In this case, the motor guarantee fund is responsible for compensating the victim. The uninsured person will then have to reimburse the motor guarantee fund with all the penalties that follow.
It should be noted, however, that third-party insurance is the only compulsory insurance. It only covers damage for which you are responsible.
Car insurance: how is the premium calculated?
When it comes to paying for car insurance, there are many factors to consider. So don't expect to pay the same price as your neighbour. The criteria taken into account in calculating car insurance are the model and power of the vehicle, the place where it is parked, the age and experience of the driver, his or her driving record, gender and, finally, the cover chosen by the insured. The list of pricing criteria is not exhaustive, and some insurance companies have specific criteria.
Car insurance: what are the criteria for choosing?
When taking out car insurance, you need to take a number of criteria into account. First of all, you need to define the use of your vehicle (personal or professional use). Next, you need to take into account how old the car is. If you're a new insurer, you'll need to take your excess into account. By "excess", we mean the amount you pay in the event of an accident. You will have to pay this sum yourself, and it will depend above all on the insurance package you have chosen.
Compare offers!
You can visit our website to request a free quote for insuring your vehicle. Then you can compare the different offers to make the right choice when it comes to car insurance. Don't forget to take into account your cover needs and your budget. When making your comparison, you'll need to take into account a number of specific criteria, such as deductibles and exclusions. As far as the latter are concerned, the absence of a driving licence and non-compliance with safety criteria are the main causes.
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