Choosing between third-party auto insurance and all-risk auto insurance can sometimes be a headache. To be able to do it, it is necessary to know what it is? What guarantees are covered?
Just like having a driver’s license, taking out insurance is compulsory. This obligation concerns all passenger cars used frequently or rarely. At least, a contract for compulsory coverage of public liability must be established. This is third party insurance. In the event of an accident caused by the insured, the insurance replaces him to reimburse the damage suffered by a third party. This type of contract therefore does not cover the driver himself and the occupants of his car. In details, insurance covers material and bodily injury caused to a person outside the car, to a building or to another vehicle. The reimbursement does not concern the insured, as much for his car, his relatives, his animals as for the cases of theft, fire or broken glass. On the other hand, it is covered by the civil liability guarantee of the other driver if the latter is not at fault. Otherwise, the driver will have to pay out of pocket if he is also covered by third party insurance.
All-risk auto insurance: what guarantee?
For broader coverage, comprehensive auto insurance or all risks is more suitable. Indeed, this type of contract concerns the reimbursement of the insured person suffering bodily injury and non-material damage. Even more interesting, compensation is provided whether the driver is at fault or not. Please note, this does not mean that the field of application of all-risk auto insurance is unlimited. Basically, it allows the contracting party to benefit from cover for damage suffered by himself and by other people, even if the offender has fled. The contract also provides for reimbursement for damage to the vehicle caused by sinister, the natural disasters, the attacks, the fires, etc.
However, the terms of the contract should be read carefully to avoid misunderstandings. Insurance companies from time to time review the conditions of application. Among other things, many insurers add clauses stipulating that the compensation becomes null if the driver is not licensed, under the influence of illegal substances or alcohol.
What is the risk of the uninsured driver?
Subscription to insurance is governed by law. In the event of a fault, the driver incurs more or less serious penalties in the event of an inspection:
- Withdrawal of the permit with a ban on taking the exam for three years or more;
- Suspension of driving license for a maximum of 3 years;
- Prohibition of driving even cars without a license;
- Immobilization of the vehicle;
- General interest work ;
In addition to these penalties, the driver will have to compensate by his own means the third parties involved in the accident. To avoid these constraints, it is better to take out auto insurance.
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