How many types of car insurance are there and which one suits me?
You need to insure your car, you don’t want to pay for what you’re not going to use, but you also don’t want to waive or avoid services that you’ll soon miss. Knowing the types of insurance that exist and what each of them entails 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 indicates. It is the minimum insurance that by law every car must have in order to circulate. It is known as third party insurance or basic insurance.
All third-party insurance must include the civil liability insurance that is required to circulate. This type of coverage covers material and personal damage that the insured car causes to third parties. The insured car and the driver himself are not covered by compulsory insurance.
This basic insurance usually includes an extension of civil liability known as supplemental civil liability that economically expands the insured’s civil liability insurance.
Civil liability for trailers and caravans, and for objects transported in the vehicle, is also usually included in third party insurance. Along with legal defense, claim for damages and travel assistance.
Driver’s insurance is also beginning to be included in third-party policies, but this is not always the case, so it is important that you take this detail into account when comparing and choosing your car insurance.
The claim to the Insurance Compensation Consortium for damage to the insured vehicle and/or personal injury as a result of certain natural catastrophes, terrorism or actions in times of peace by the Armed Forces and the State Security Bodies, completes the coverage for which It is enjoyed with third party insurance.
2. Extended third-party insurance
In accordance with the needs and demands of today’s drivers, insurance companies have increased their third-party insurance offer, offering a type of policy that is somewhat less basic, but not as complete as those called all risk.
In this group of extended or complete third-party car insurance policies, you will find a wide range of coverage that you can choose independently or in package format, depending on the different companies. Coverage for total or partial breakage of windows or windshields, fire insurance or repair of damage suffered by the car, if an animal is run over, for example; are among the most common in extended third-party insurance.
The most complete third-party policies offer the driver more specific services and assistance such as the civil liability of the policyholder and driver declared as a cyclist, the civil liability of the minor child driving without a license, defense against traffic fines, subsidy for deprivation of license of driving, theft of the vehicle, the cleaning of the vehicle for the transfer of injured or the interest and expenses of the loan for the repair of the vehicle.
This type of third-party insurance with extended coverage is very interesting so that the driver can complete his protection and that of his vehicle based on its use, priorities and needs, without having to give up anything essential, even if you choose a third-party policy.
3. All risk
Comprehensive car insurance offers a complete range of coverage, assistance and services for the driver and his vehicle. They include, of course, the obligatory ones such as civil liability insurance, but also all those that complete the policies for third parties such as broken windows or vehicle theft.
Comprehensive policies include coverage that does 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; Similarly, even if there are no third parties, as in the case of bumps or damage during parking, the fully insured car is protected in these circumstances as well.
Practical services that are commonly used by drivers, such as the replacement vehicle or the defense against traffic fines, are also facilities that fully comprehensive car insurance holders enjoy.
There are two basic modalities within the comprehensive insurance. You can find comprehensive policies with or without excess. Excess insurance may be cheaper in principle, but they have the disadvantage that they only cover part of the expenses related to the claim. Whenever the costs of repair or assistance are less than the amount established -premium- in the contract -for example 300 euros- it is the insurance holder who has to bear the bills.
Comprehensive insurance without excess is the most complete and effective that can be contracted to protect a vehicle, the responsibility for the protection of the insured car falls exclusively and fully on the insurance company. The maximum coverage for any eventuality or possibility is included in this type of insurance that responds to all the needs and demands of drivers regardless of their circumstances.
To complete their offer of car insurance, insurance companies market exclusive policies with different coverage for specific drivers, such as young drivers, experienced drivers, professional drivers or ecological cars. These types of contracts enclose cheaper premiums or advantages for certain clients, in addition to discounts or exclusive coverage of great interest.
Car insurance can therefore be comprehensive or third party, but keep in mind that within each of these two options there are a large number of details that can change from one company to another. On the other hand, the insured must pay attention to the economic amounts that are insured –expenditure limits- in each of the coverages and that can suppose a significant difference in the final price, but also a very different degree of protection.