October 2, 2019 admin 0Comment

You bought a car? If it is mandatory to take out liability insurance at least, you can also look for more comprehensive cover for yourself and your vehicle with comprehensive insurance. We explain the differences.

You have taken out a car loan and it is now time to take out car insurance. Be aware that this is simply required to compensate other vehicles and pedestrians for damage you may cause while driving.

This obligation is very strict. In the absence of car insurance, you risk big: withdrawal of license, confiscation of the vehicle and up to $ 3,750 fine. Above all, in the event of an accident, you will have to pay for the material and bodily damages that can be exorbitant.

Now, what insurance for your car?

Liability insurance or “third-party insurance”

Liability insurance or "third-party insurance"

This is the minimum guarantee that must cover any vehicle running on public roads, even very occasionally. Note that some companies offer mileage insurance policies whose cost – usually very low – is calculated based on the distances covered by the insured each year.

Third-party liability insurance is often referred to as “third-party insurance” because it covers people and property that would be the victims of an accident that you may have caused. It can also be your passengers.

Third-party insurance is economical for a simple reason: you or your vehicle are not compensated for damage resulting from an accident that you may be causing.

Of course, if you are the victim, you and your vehicle will be covered by the insurance of the driver responsible, whether he has taken out liability insurance or comprehensive insurance.

All risks insurance

All risks insurance

All-risk insurance is aptly named: it covers all types of risks to the vehicle. Certainly more expensive, it is a welcome protection, especially if your credit consumption auto allowed you to buy a new car.

You and your vehicle are compensated even when you have a liability in the accident. And including, depending on the contract, when you are the only casualty of a disaster: if your car slips on a plate of ice and lodge in a ditch, for example.

With an insurance against all risks, you benefit from all the guarantees provided to compensate third parties, but also guarantees to compensate you in case of:

  • bodily injury to the driver (you);
  • collision damage (you cause an accident with a vehicle, a bicycle, a pedestrian, etc.);
  • damage all accidents (you hit a concrete flower bin while doing your niche);
  • theft or fire of the vehicle (useful if your car is new);
  • broken windows (broken pares or windows broken due to attempted theft);
  • theft or destruction of present objects and amenities;
  • natural disasters.

An all-risk insurance also allows you to benefit from very practical services such as troubleshooting-zero kilometer towing, legal protection or the loan of a replacement vehicle during the repair period.

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