Not sure what type of car insurance to choose? Here are 4 types of car insurance you can take out, Find out about the coverage of each one to choose the modality that suits you.
The different forms of contracting insurance for our automobiles will allow us to adapt to certain prices, assuming greater or lesser risks depending on the modality.
Depending on the age of the vehicle and the type of driver you are, you can assess which insurance is most appropriate for you and consider the price to pay.
What is auto insurance?
car insurance helps you protect your vehicle, yourself, and your passengers – against collisions, theft, damage, and other services – as well as third parties, affected in an accident.
What does car insurance cover?
Depending on the contracted product, your auto insurance may have the following coverage:
- Material damage to the vehicle
The coverage for damage to the insured vehicle may apply for partial damage to the vehicle and/or for damage that constitutes a total loss of the vehicle.
The vehicle is considered to suffer a total loss when the value of the damage exceeds a percentage of the commercial value of the vehicle at the time of the loss indicated in the particular conditions of your policy.Some examples in which with this coverage you will be protected by your car:
- You crashed your vehicle.
- They crashed your vehicle.
- They hit your car while it was parked and they fled.
- Damages to third parties and Civil Liability
The coverage of damages to third parties seeks to indemnify any person who has suffered a patrimonial and personal loss due to an accident in which the insured vehicle has participated and has coverage.With Civil Liability coverage, you will be protected in case of:
- Lost profit. For example, you hit a kiosk or a taxi.
- Moral damage. For example: in case you affect the physical and/or moral integrity of a third party.
- Damages. For example, you crashed another person’s vehicle and caused damage to someone else’s property, such as colliding with the wall of a house.
Is anyone who drives my car covered?
Auto Insurance product is a free drive, this means that the coverage applies to the insured matter (car) and not directly to the driver, however, there must be an insurable interest relationship with the insured.
4 types of car insurance
Below are 4 types of car insurance you can take out.
1. Third party insurance
It includes compulsory civil liability insurance so that in the event of an accident in which the damages were caused by us being the offenders, it is the insurance that bears the cost of repairing the damaged vehicle.
In addition, this insurance covers damage caused to the driver of the vehicle and its occupants. Keep in mind that there are limits established by law and that in the event of an accident caused by the contracting party, the damage suffered by your car will not be covered.
Insurance is usually contracted by those who are not prone to accidents but bearing in mind that if the vehicle is new this insurance will not cover damage to it, so if this is the case it would be more advisable to contract other modalities of sure.
2. Extended or combined third-party insurance
Depending on the insurer, the name may vary. It includes the standard third-party insurance coverage and is complemented by the possibility of covering damage caused to the windows, as well as theft or fire of the vehicle.
3. Comprehensive insurance
Made up of all the benefits of the third-party insurance combined and also with coverage for personal accidents of the occupants of the insured vehicle, as well as the damage caused to said car. Preferred insurance modality for all those who have just bought a new car or Km 0.
4. Franchise comprehensive insurance
It differs from the previous one in that in the event of an accident, the insured will pay an established fixed part and the rest will be paid by the insurance company. It is a modality that is spreading and is becoming increasingly popular because it has the advantages of comprehensive insurance at a lower price when it is considered appropriate to share risks (excess) with the insurer.
Some reasons to have auto insurance:
Peace of mind when driving your car
There are events that, when they occur, cause you a significant economic loss. For this reason, having insurance for your car will help you drive with peace of mind since, for example, it can provide you with support in the event of:
- Theft of your vehicle.
- Damages to third parties.
- Damage to your vehicle.
- Passenger injuries.
Auto insurance is a mechanism by which the risks related to the use of your vehicle are transferred from a natural or legal person to an insurance company. For example, payment to a third party in the event of a crash.
Automobile insurance can protect you, in Chile or abroad, from the following situations: material damage to your vehicle, damage caused to third parties, civil liability, theft (total or accessories), damage caused by malicious acts or natural phenomena, among others. depending on the type of insurance you hire.