The auto insurance is mandatory to be able to circulate on the roads with your car. This is what Spanish legislation indicates. The offer of the car insurance market is wide and the options offered are very diverse, so the choice of the best product, the one that best suits your needs, is not always an easy task. In this we want to give you a series of keys so you can better know car insurance and choose the one that best suits you.
The first thing you have to know is that car insurance is used to cover the damages that your vehicle or third parties may suffer in case, for example, of suffering a traffic accident. However, in addition to compulsory insurance -which includes civil liability for damages caused to third parties and legal defense, up to a certain limit-, the user can choose between several types of auto insurance, including multiple voluntary coverage covering possible compensation in excess of the amounts included in the compulsory auto insurance.
The different types of policies that you can find are:
• Comprehensive car insurance:
There really is not a standard model. They are so called because in addition to the damages to third parties, whose insurance is obligatory, it also includes the own damages, that is to say, the insured car, whenever the holder of the same is the culprit. Each company has its own commercial products, but, in general, in addition to the damage caused to our vehicle, it is usual for these insurance companies to offer some complement such as mechanical assistance, coverage for the loss of points, legal advice and management, access to other insurance in preferential conditions …
• All-risk auto insurance with franchise:
These policies are very similar to those of previous auto insurance. The difference is that the cost of the damage caused will be borne, in part, by the owner of the vehicle considered guilty and, in part, by the insurance company. For example, if you have an insurance with a deductible of 300 euros, if, after an accident, the repair amounted to 1,000 euros, you, as insured, would pay 300 euros and the company, 700.
• Basic third party insurance:
The coverage of this type of car insurance is intended to cover the damages caused to third parties, as long as the owner of the insured vehicle is the culprit. That is, the minimum insurance required by law. This type of car insurance, in addition to covering mandatory civil liability, usually includes coverage such as Voluntary Civil Liability, travel assistance, legal defense or driver insurance.
• Extended third-party auto insurance:
This is a type of car insurance that includes the same coverage as third-party car insurance, but adds damage to the insured car’s windows, the theft and the vehicle’s fire. Some insurers also include coverage for the defense of fines, subsidy for the withdrawal of the card or replacement vehicle.[ How To Calculate Car Insurance ]
As you can see, in the market there are policies of all kinds that, based on compulsory car insurance, allow you to hire as many complementary coverage as you need.