Home Money Insurance What Types of Auto Insurance Exist and What Is It for Me?

What Types of Auto Insurance Exist and What Is It for Me?

What Types of Auto Insurance: In Mexico, the laws vary greatly regarding the obligation to have your car insured as they vary depending on the state where you are.

Types of Auto Insurance
Types of Auto Insurance

However, having a car insurance protects you in case of eventualities and above all damage to your vehicle, which can be a great relief. Know what types of additional options exist so you can take them into account when buying your auto insurance.

In Mexico, 7 out of every 10 cars do not have any type of auto insurance that protects them against any type of accident (either to them or to some pedestrian), theft or damage to another vehicle.

Damage to third parties

Types of Auto Insurance
Types of Auto Insurance

This type of coverage helps you pay for the costs of damage or injury to other drivers or people who have resulted from an accident caused by you. This type of coverage, also known as civil liability, is mandatory if you are a person who circulates a lot through federal channels.

Crashes or that covers any risk?

This type of coverage is optional in most cities in Mexico, but there are cases that in some type of work, your bank or even the tenant of your car require this type of auto insurance even if it is limited coverage.

Crash coverage does exactly that, paying for the damages your car will suffer in an accident, while full risk coverage protects you in situations where your car is damaged for any reason other than a crash (vandalism, theft, hail, etc).

3 Types of Auto Insurance

Depending on your needs you can find different types of coverage options. There is specialized auto insurance for people who work as drivers or companies where they transport their products on a large scale.

Types of Auto Insurance
Types of Auto Insurance

A medical expenses coverage allows you to cushion the costs of medical attention that you or your passengers need in case of a car emergency.

Currently, there are additional options to ensure even your electronic accessories inside your vehicle, the important thing is that you identify what your needs are and compare the options that your insurer offers you. It has been shown that people who insure their car automatically feel calmer since they know that a company will answer for them in case of an accident.

This starts from not having to argue with another driver if you run, as the agent of the insurer is the one who should be in charge of talking and reaching an agreement with the other driver.

1. Third party insurance

The insured car and the driver themselves are excluded from the compulsory insurance protection.
This basic insurance usually includes an extension of civil liability that is known as a supplementary civil liability that extends the insured’s civil liability insurance economically.
Types of Auto Insurance
Types of Auto 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, damage claim, and travel assistance.
Driver insurance also begins to be incorporated into 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, as a result of certain natural disasters, terrorism or actions in peacetime by the Armed Forces and the State Security Corps, completes the coverage of which you enjoy with third party insurance.

2. Extended third party insurance

The coverage of the total or partial breakage of windows or windshields, insurance for fire or repair of the damage suffered by the car, if it runs over an animal, for example; they are the most common in extended third party insurance.
Types of Auto Insurance
Types of Auto 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 responsibility of the underage child driving without a license, the defense in traffic fines, subsidy for deprivation of permission of driving, theft of the vehicle, the cleaning of the vehicle by transfer of injured or the interests and expenses of the loan for the repair of the vehicle.
This type of insurance to third parties with extended coverage is very interesting so that the driver can complete their protection and that of their vehicle according to their use, priorities, and needs, without having to give up anything essential, even if you choose a third party policy.

3. All risk

Types of Auto Insurance
Types of Auto Insurance

The all-risk car insurance offers a complete range of coverage, assistance, and services for the driver and his vehicle. They incorporate, of course, the obligatory as the civil liability insurance, but also all those who complete the policies to third parties such as the breaking of windows or the theft of the vehicle.

All-risk policies include coverage that covers both the driver and the insured car itself in case of being involved in an accident regardless of whether or not it is the cause; Also, even if there are no third parties, as in the case of blows or damages during a parking, the car insured at all risk is protected in these circumstances as well.
Practical services and for habitual use by drivers, such as the replacement vehicle or the defense of traffic fines, are also facilities enjoyed by holders of car insurance at all risk.
Types of Auto Insurance
Types of Auto Insurance
Franchise insurances may be cheaper in principle but have the disadvantage that only covers a part of the expenses related to the loss.
All-risk 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 integrally on the insurance company. The maximum coverage before any eventuality or possibility is included in this types of car insurance that meets all the needs.
The insurers market to complete their offer of car insurance, exclusive policies and with different coverage for specific drivers such as young drivers, experienced drivers, professional drivers or green cars. These types of contracts include cheaper premiums or advantages for certain clients, in addition to exclusive bonuses or coverage of great interest.

Types of Auto Insurance
Types of Auto Insurance
Car insurance can, therefore, be either at all risk or to third parties, but keep in mind that within each of these two options there are a lot 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 – limits of expense – in each one of the coverages and that can suppose an important difference in the final price, but also a very different degree of protection.

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