You need to insure your car, you do not want to pay for what you are not going to use. Neither do you give up or avoid services that you will soon miss. Knowing the types of auto insurance that exist and what each of them entails helps you a lot. It is the first step in choosing the perfect cover for your car.
Kind of auto insurance
Third Party insurance
This first type of policy is the simplest and most basic, as its name indicates. It is the minimum that by law every car must have in order to circulate. It is known as basic or third party cover.
All third party insurance must include the civil liability required to circulate. This type of protection covers material and personal damages that the insured car causes to third parties. The insured and the driver himself are outside the protection of the required insurance.
This basic coverage usually includes an extension of civil liability. It is known as added civil liability that expands the insured’s liability cover.
Civil liability for trailers and caravans, and for objects transported in the car, is also usually included in third party cover. This will be made along with legal defense, damage claims and travel assistance.
Driver insurance also begins to be into third party policies. This is not always the case. It is important that you take this detail when comparing and choosing your car cover.
You can claim the insurance bonus for other reasons than the damage to the insured car. It could be the result of certain situations as: Natural disasters, crime, also it could be for actions in peacetime of the Armed Forces and the State Security Corps. It completes the coverage of which enjoyed with third party cover.
Extended Third Party cover
In accordance with the needs and demands of current drivers, insurance companies have increased their offer. Even more in auto cover to third parties. They offer now somewhat less basic type of policies. But, some of them are not as full as those called all risks.
In this group of extended or full third party car policies, you find a wide set of coverages that you can choose apart or in package format, according to the different groups.
The coverage of the total or partial breakage of windows or windshields, fire cover or the repair of damage to the car, if it runs over an animal, for example; are the most common in extended third party.
The most full third party policies offer the driver more specific services and assistance. Services such as the civil liability of the insured and declared driver of a cyclist.
It includes also the civil liability of the minor child driving without a license, defense in traffic fines, subsidy for deprivation of permission driving, theft of the car, cleaning the car for the transfer of the injured or the interest and expenses of the loan to repair the car.
This type of third party with extended coverage is very important so that the driver can complete his protection and that of his car depending on its use, priorities and needs, without having to give up anything essential, even if you choose a third party policy.
All risk insurance
Full risk auto insurance offers a complete range of coverage, assistance and services for the driver and his car.
They integrate, of course, the obligatory ones such as civil liability cover. But they also include all those that complete third party policies such as broken windows or theft of the car.
The full risk policies include coverage for both the driver and the insured car itself, that in the event of being involved in an accident regardless of whether or not it is the cause.
The insurance fully protects the car in these circumstances as well, even if there are no third parties. This is the same case of blows or damage during parking.
You, as an insured, could enjoy different bonus. Depending on your contract, you can enjoy car replacement or the defense of traffic fines.
There are two basic procedure within full cover. You can find full risk policies with or without franchise. Duty free insurance may be cheaper in principle but it only covers part of the expenses.
Whenever the repair or assistance costs are less than the prime amount that the contract sets. For example 300 USD it is the insurance holder who has to take care of the invoices.
Auto insurance breakdowns
Mechanical, electrical or electronic breakdowns can cause serious damage. Sometimes, the use of a temporary car remains undesirable.
As a general rule, its repair is associated with a significant financial outlay. So, in many cases the question often arises as to whether full covers this type of inconvenience.
The age of the car or the km it has traveled, nor by a traffic accident not usually causes these damages.
The reason is a failure that occurs unexpectedly. So, defining the causes or why it has occurred is usually quite not easy.
This implies that in addition to the labor required to solve the problem and the costs of replacing the parts, it is also necessary to add the resources used to detect the problem and carry out the corresponding tests.
Breakdowns in full auto insurance
Taking out full insurance is the best way to protect a car with the most full coverage.
However, the fact of signing this policy does not mean that certain exclusions do not exist in the general and particular conditions.
Although it depends on the policy of each insurer, the truth is that, in most cases, mechanical or other failures are not included among the guarantees.
In order to avoid error, all needs to be clear. The most common thing is that the conditions of the contract specify things as:
Exclusion of breakdowns and their consequences
When it comes to taking out all risk, it is essential to read the fine print to know exactly the scope of the coverage.
They are covered by the damages of the insured car provided that they occurred as a consequence of a traffic accident.
Despite this, it may be the case that at the same time damage appears due to an incident that occurred and mechanical breakdowns that already existed or were occurring at that time.
In this case, experts distinguish the two types of problems. This to clearly determine how far the importance of the insurer reaches. In addition to the car’s own damage coverage, full insurance also covers:
Breakage of the windshield and windows, plus damage to the car caused by fire, short circuit or combustion.
It is important to mention travel assistance. Could be in the event of a breakdown in the car, both when traveling within or outside the national territory.
How to cover mechanical breakdowns?
In the case of new cars, there is no need to worry if the full auto insurance does not cover breakdowns. As the law requires the company to offer a minimum two year warranty. If the car is second hand, this period is reduced to one year.
From there, so that the car is not totally unprotected against mechanical, electronic or electrical breakdowns, there are specific covers for this type of damage that can be contracted independently from the policy.
Their name is mechanical damage insurance or mechanical guarantee insurance. The covers usually focus on the most important parts of the set, such as the engine, the brake circuit, the steering, the chassis, etc.
Consequences of not hiring auto insurance
In the US, basic third party c insurance is mandatory for all cars. In the event of an accident, the minimum coverage covers compulsory civil liability, that is, injuries and material damage.
From there, it is advisable to include other coverages to circulate more calmly, yes, a car can’t circulate without insurance.
What happens if you drive without cover?
According to the Law on civil liability and insurance in the movement of motor cars, driving without cover is subject to a fine. If you do this, you should pay for it.
In addition, if you are the culpable, you must assume the personal and material damages that it causes to other people. In the latter case, it is not only civil, but also criminal consequences.
Fines for driving without cover
Fines can be imposed for driving without cover, whether the car is running or stopped. The latter applies even if your car is parked in a private space, off public roads. The only exception in this case is that the temporary or definitive withdrawal has been processed.
The deadline to pay in advance the fine for going without cover is 20 calendar days from the day after the sanction is notified.
In this way it is possible to benefit from a 50% reduction. Although if this voluntary period ends, the Tax Agency proceeds to inform how the payment should be made.
Other consequences of driving without cover
In addition to the fine for driving without cover, the Law on civil liability and insurance in the circulation of motor cars also establishes that the car can be deposited if it circulates through the national territory without cover.
It is important to know it as fast as possible. the offender has a period of 5 days to justify the existence of the insurance to the competent authority. Otherwise, the following happens:
Parties should agree the deposit of the car for a period of one month. In case of recidivism, it will be three months. In the event of a breach of the deposit, it will be one year. Everyone who reach this limit needs to test it.
If you are the owner, you should pay the expenses that originate as a consequence of the deposit of the car, who must pay them or guarantee their payment as a condition for the return of the car.
The policy supplement in auto insurance
Car insurance contract
At the time of signing the contract, you must have documents and history to back you. The risk assessment and the calcul of the premium are based on the veracity of the info provided. You only should give the info through a written document or verbally. You may also have legal asistance.
If there is any error or missing data, it is possible that the right to the benefit will be lost in the event of suffering a claim.
In this case, they could also reduce your bonus. There is a difference between the premium you agreed and the one that should really have been applied. Obiously, if they analyse the real risk at time of signing contract.
What does the Insurance Contract Law say?
Given that the marks of the insured and the car may change over a year or a longer period during which the policy remains in force, insurance contracts law requires updating information.
The insured or the insured shall, during the term of the contract, communicate to the insurer, as soon as possible, the alteration of the factors and marks declared in the request.
During the course of the car insurance contract, the insured or the insured may inform the insurer of all the marks. Inform them about any risk of any nature. If would be perfect while the contract goes one. You will conclude it under more favorable conditions.
Why is it important?
In this context, the policy supplement in car insurance is close to the new conditions that arise and that require updating the policy data, such as adding new coverage, including an additional driver. Also, it could be to request a change of address, integrate other car accessories, etc.
Specifically, it is a document that complements the policy where all the modifications the original contract includes, as well as other new statements made by the insured.
This concept is also known by the name of insurance supplement or supplement of increase or reduction of guarantees.
As in the first contract, in the policy supplement it is also essential that the insurer and the insured have agreed and signed for the new particular conditions to take effect.
Since this annex usually affects only a part of the contract, the rest of the clauses remain in force as long as they do not conflict with the new points.
Taking into account that, if you are insured, you must inform the insurer of any change that occurs. It is best to contact the company’s customer service.
You shouldn’t forget that cover is based on the good faith of both parties. So that, if the client does not fulfill his commitment, there are consequences. These can go as far as the cancellation of the contract.
What do I need to get auto insurance?
Nowadays it is basic and almost essential to have cover that protects your car in any case.
When you have already made the choice of cover for your car, only the procedures remain.
But sometimes it is not clear what are the documents you need to make the contract. You end up complicating yourself. Even more without being clear on what you need to be able to sign the contract.
It is important to know that each insurance institution or company is different. Each one establishes different internal conditions when formalizing the policy.
In general, the basic papers that they request you to do the hiring of the policy are:
- Official Id: You must prove the identity of the person who will sign the contract. Also of the regular driver if he is a different person.
- License or permit in order: To make the insurance valid is to have a valid driving license.
- Usual driver age: In some cases, insurance only process policies for adults. But there are also companies that insure minors as long as they have a driving license and financial support.
- State and postal code: The insurer must determine the total theft risk of the car. Also the propensity for an accident depending on the state where the car travels.
It is very important that you present the correct proof of residence. If you have an accident and you have submitted an incorrect info, the insurer is exempt from covering the damages.
- Technical sheet of the car: Model, age, circulation card, license plate number and serial number, as well as the use of the car (private, cargo driver).