DIFFERENCES BETWEEN THIRD PARTY INSURANCE, INSURANCE AND ALL RISKS INSURANCE KM

by Roberto Luciano Education & Finance &...

When you check, your contract (and therefore pricing) is established based on criteria that you cannot choose your age, date of license, you’re driving history (bonus / malus), vehicle characteristics ( power, age of vehicle). Your home also has an impact on the amount of the fee. However, you can choose between several types of contract: liability insurance, liability insurance and insurance km. What are the advantages of each of these contracts? How to choose?

The third party insurance (liability)

The all-risk insurance

The PAYD insurance km or "Pay as You Drive"

The third party insurance (liability)

The third party insurance is the minimum formula to roll your car. It mainly includes the liability; it is often the cheapest car insurance. This formula allows compensating the damage and injury to third parties. But there shall be no compensation for your vehicle or a very small amount if it is not repairable for example, or my personal damage. This type of formula is suitable for small cars that are not listed on the Argus and whose purchase value is very low and sometimes less than the amount of insurance.

The all-risk insurance

Comprehensive insurance is the third party insurance (liability, legal and glass breakage) but with a little more attractive franchises. You get such additional guarantees, warranty damages, collision damage and injury drivers, Roadside Assistance...

It is possible to take additional collateral as a guarantee theft, fire and natural disasters. There are also many other additional options such as loan guarantees replacement vehicle, the driver enhanced protection...

Two types are possible troubleshooting: Troubleshooting with an excess mileage (50km most often) and roadside assistance 0km. The amount of the bonus depends. Franchises are sometimes a percentage of the amount of damages.

The PAYD insurance km or "Pay as You Drive"

This type of insurance is designed to pay less. It is especially interesting when you realize a few kilometers. It is widely used by young drivers. There is a monthly fee or by charging to truly km or two with a monthly fee and a variable beyond the planned km traveled.

A meter is installed in your car by a licensed professional. The insurer saves and retrieves information every month in an automated fashion. There may be a limit beyond which you stop paying kilometer.