Types of insurance for cars

Types of insurance for cars

When it comes to hiring car insurance, one of the main things we need to look at is about the coverages it includes. To help you choose the one that suits you the most, we do a quick review of the most common differences in car insurance policies.

To third parties, to third parties extended, to all risk, to all risk with franchise... Not all car insurance is the same. The market is full of different types of policies that offer varied coverages ranging from the basic ones that relate almost exclusively to the damages that may be caused to third parties in the event of an accident, until reaching those that even help and advise the driver in Specific circumstances such as the withdrawal of the card.

Depending on the type of policy contracted, the coverages vary in a very significant way, and with them also varies the price of the annual premium to pay for the car insurance. For example, policies with lower annual premiums are usually those for car insurance to third parties: they are the most basic and mainly cover the damage that the insured driver may cause to other drivers or vehicles. 

It is important to note that not all policies to third parties are the same: each insurer establishes its conditions and includes specific coverages to try to differentiate itself from the competition: roadside assistance, fines management, legal advice, by example, your most basic third party insurance policy includes travel assistance, as well as legal advice for loss of driver's license points, aspects that other companies only allow to hire as extras.

In general, insurance companies offer the possibility to supplement their car insurance policies to third parties with additional coverages. For example, it allows hiring extras such as roadside assistance, the free choice of workshop and the possibility of obtaining a replacement vehicle if the car is insured to suffer a claim that has it for a time in the workshop, or is stolen.

In addition, the insurance companies also offer the extended car insurance to third parties, which includes the basic coverages of any insurance policy to third parties, plus a series of extras that although they make a little more expensive the price of the premium, together they can represent An attractive option for those seeking a policy that also protects part of their interests and those of the insured car. 

On the other hand, car insurance at all risk are those that include the greatest amount of guarantees, which translates into a greater peace of mind for the policyholder, ie for whom he hires, although these coverages as it is logical are a higher premium. This type of insurance is usually recommended for new vehicles, since they protect practically all aspects related to the safety and care of the insured car. 

Franchised full-risk car insurance is a good choice for drivers who have a new or relatively new vehicle, and do not often suffer many claims per year. It is important to note that the franchise is pre-established with the insurance company and that it is a fixed amount that is agreed in advance. 

Given such a variety of options, and conditions, the ideal is to analyze very carefully what are the real needs we have when hiring insurance for our vehicle, evaluating aspects that go beyond the price of the premium and go to evaluate Our driving habits, experience in front of the wheel, and even if the car spends the night parked in the street or in a private garage. The key to buying smart is to compare, and hiring the ideal car insurance is no exception.

Read more ...