The 10 Most Important Types of Car Insurance Coverage

Car Insurance Coverage: While different states have different mandates for car insurance, most basic car Coverages consists of 10 Types of Car Insurance Coverage. Here’s what you need to know about each.

Car Insurance Coverage
Car Insurance Coverage

Types of Car Insurance Coverage

1. Obligatory Civil Liability

Civil liability is the obligation that falls on the driver guilty of indemnifying or satisfying a capital for the damage caused. It is assumed by the insurance company and is responsible for:

Bodily damage: the driver’s insurance must pay the expenses of the bodily harm caused to all persons other than the guilty driver. The regulation of the EU requires that companies cover up to 70 million euros.

Material damage: materials are understood as animals, houses, other vehicles, etc. That is, all that are not people. The company of the guilty driver is the one that assumes the expense of the compensation, with a maximum of 15 million euros.

Healthcare: the insurance company of the guilty driver is responsible for covering the medical bills produced by the physical damages to the victims, such as medicines, hospital bills, etc. Also, if your company belongs to the CIDE / ASIDE agreement (LINK DICC), the guilty driver will also be covered.

Burial expenses: when a driver causes an accident and there are dead, the insuring company of the guilty driver is responsible for paying the expenses of the funeral of the victim following the customs of the place of origin of the deceased.

Car Insurance Coverage

2. Moons

They are the windows of the car, both the front and rear doors and, usually, the companies also include the sunroof. Guarantees the value of the moons and their placement. It does not usually include headlights, mirrors, flashers or other glass objects.

When we hire a moons insurance, we are automatically including coverage of own consortial damages, which would involve the repair of damages caused to the vehicle by extraordinary factors and assumed by the Insurance Compensation Consortium.

3. Theft of the vehicle and its accessories

The company agrees to indemnify the insured in case of theft of the vehicle. This type of compensation usually includes:

Theft of the vehicle: 100% of its value at the time of the theft

Theft of fixed parts of the vehicle: 100% of its value again

Battery/tire theft: 100% of its value at the time of the theft

Damage due to theft (eg locks): 100% of the amount of the repair

Car Insurance Coverage
Car Insurance Coverage

To these basic theft insurance covers can be added others such as the automatic inclusion of all accessories, objects in the vehicle, etc.

4. Accidents

Also known as the driver or occupant insurance. Covers all bodily injury to the insured or person occupying the vehicle due to a traffic accident. In this case, a capital is satisfied for death, disability or cure, and that is additional to that received for the civil liability of the guilty driver.

5. Travel assistance

Guarantees welfare benefits for people and vehicles. Among them, the repatriation or transport of wounded, sick or deceased, medical and surgical expenses or accommodation expenses. In the case of vehicles, it is responsible for towing them in case of breakdown or accident, offering technical service, moving it, sending spare parts, etc.

6. Vehicle replacement

A replacement vehicle is a complementary option offered by some companies during a specific time due to an accident due to damage and fire, theft or repair of the vehicle.

7. Own damages

This insurance covers the damages caused to the insured vehicle accidentally, whether the car is in circulation or at rest and whenever the damage is caused by an external cause. This type of accidents are usually due to fires or explosions, collision, overturning or collapse of the vehicle, land sinking, etc.

There are two forms of contracting for this insurance:

Coverage without deductible: The company assumes the totality of the damages and the insured must pay nothing.

Duty-free coverage: The insured stipulates a minimum amount up to which the insurance company shall not indemnify any amount. In this way, the company avoids compensating for small repairs, which significantly reduces the price of insurance.

8. Other coverages

Criminal defense, bonds, and claims

The insurance company assumes the personal defense of the driver and the owner of the vehicle, as well as the payment of court fees. On the other hand, the broker deposits the value of the bond to guarantee the payment of the costs or the provisional freedom, provided that it is within the amount stipulated in the particular conditions. On behalf of the insured, the company guarantees the claim to the responsible party, either in a friendly or judicial manner.

Insurance of subsidy for temporary deprivation of the driving license

Car Insurance Coverage
Car Insurance Coverage

In case of temporary withdrawal of the driving license, the insured can negotiate with the company a monthly amount for travel expenses.

Repair loan

This coverage allows the insured to receive a loan to pay the amount of the repair of the damages. These loans are granted when the amount to be repaired has a minimum of € 600. The maximum established is, generally, € 6000 and the loan repayment period of 36 months.

Free choice of workshop

The companies have agreements with a wide selection of mechanical workshops. However, many offer the possibility that it is the insured who chooses the workshop to which he wants to take his vehicle. Depending on the company, the cost of the repair is paid by the insurer directly to the workshop or paid by the insured and the brokerage is reimbursed later.

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