FAQ about car insurance

FAQ about car insurance

It is well known that every owner of a motor vehicle is required to hire and keep in force an insurance policy covering civil responsibility of the driver to own damage-personal and material and against third parties as a result of a traffic accident . Although this obligation required the owner of the vehicle contrasts with the driver qualification as a subject responsible. That is, that although the owner of the vehicle is the same person as the policyholder, the insured is the driver, because what really is covered is not the responsibility of the owner, but the driver's responsibility.

If we had our conditional franchise insurance, it can be in two different ways. The most common case is the absolute franchise, for which the insurance company will pay compensation resulting from the difference between the damage and the amount of contracted franchise, because if damages were minor the franchise, the insurer any amount not indemnified.

In the case of relative franchise in which the amount of the loss suffered does not exceed the amount of the excess, the insurance company will not compensate, and if so, the insurer will pay the full cost of the damage suffered by the policyholder.

To prevent that errors or omissions, we charge premiums in the years following the effective date of our original insurance is highly recommended that before two months after the end of the period of insurance in force, communicate to the insurer our desire not continue the contract.

If tacitly our policy and increased insurance premium you were not foreseen in the contract, the increase must be accepted by us as takers. And if the proposed increase was for the next contract renewal period, shall notify with at least two months from the date of expiry; and if as insured not expressly accept the proposed increase and the contract not be settled by the insurance company or within two months not respected, happen that rising raw unable to apply without our consent, insurance company premium must respect the previous year.

Until the expiry of the term of the insurance, the insurance company may not rescindirnos reject the contract because the premium increase that was not foreseen in the contract; only if the revised amount of the premium were under our policy determining its new amount linearly, or failing that the method for calculating stated, only then the climb to apply would be made without our consent it is necessary.

Therefore, the recommendation is that we should read carefully the contractual terms of the contract and our insurance policy if we are not convinced, policy or switch to another insurance company. The best way is to inform us through the online insurance comparison Rastreator of the options available to us.

What if you are driving without insurance?

As we know there is the obligation to take out liability insurance stipulated by legislation. The driver, who circulates without insurance will be fined and in some cases you can immobilize the car.

Fines range from 600 euros to 3,000 euros. If you have an accident the responsibility lies with the uninsured driver, beyond the fault of the accident was the other driver. The uninsured motorist must pay the costs for the repairs of the other vehicle. Mostly the uninsured can not take care of the inherent economic repair expenses. In such circumstances involving the Insurance Compensation Consortium that will take care of payment.

How car insurance?

Car insurance is an agreement established between an insurance company and the insured (the policyholder or the policyholder), which is embodied in an insurance contract. The insured receives a premium payable mandatory coverage for bodily injury liability and property damage.

How is the premium price determined?

The premium is the price of insurance. A premium rate is established by evaluating several factors. It is taken into account age, sex, marital status of the insured, where the vehicle, driving record, the make and model of the car, prior insurance coverage and kilometers performed per year is saved. Generally, drivers with poor driving records statistically are more likely to intervene in an accident, so are drivers who will apply a more expensive rate. When it is determined its value must be added taxes, to have the price you will pay the insured. The insured can choose the method of payment, quarterly, yearly, etc. If the insurance company increases the premium has, to notify the insured with at least two months before the expiry of the annual policy, so that if the insured does not agree has time to terminate the contract before the next renewal.

How I can reduce the premium?

Insurance companies use to attract certain types of customers special offers or discounts. For example: for drivers with a spotless driving or have not committed any accident or securing more than one car with the same insurer. This way you can get the insurance company make a discount of X% depending on a particular feature.

Because premiums vary and are updated according to statistical data of accidents, costs of injury compensation, health care, spending on labor repair parts to replenish and everything that can influence risk (age, in the driving license, geographic area, etc.) it may happen that two people with the same car pay different premiums.

Insurers set accidents grouping groups with the same characteristics, such as:

The age and sex. Statistically younger are more reckless and has a higher loss ratio and women of a certain age make fewer accidents than men.

  • Seniority as a driver: the driving experience for several years reduces the risk of accidents.
  • Territorial scope: different areas reveal statistically more accidents, is set by the number of vehicles by province, traffic, weather (ice, fog, etc.) types of roads, population density, etc.
  • What a car? the bigger major damage, that is the relationship that is taken into account. Repair costs will be higher.

    What used car? those who use their cars as a working tool or an essential transportation for work, has much use and are more exposed.

    Insurers apply a system of bonuses and penalties (bonus malus) consists of discounts and surcharges on the basic premium according to claims reported in the last twelve months by the insured. If there were no casualties and discounts apply if claims can be declared to apply surcharges. These are applied on a mandatory or voluntary insurance liability, own damage, theft, fire and broken windows are excluded other coverages.

    Who are involved in the contract?

    In the car insurance contract involved:

    1. The insurance company that is offering the policy, you receive the value of the agreed premium and liable for the obligation to pay compensation in case of accident.
    2. The policyholder (policyholder), the policyholder may be different from the insured, because it is only responsible for paying the premiums for insurance.
    3. The person listed as the insured, and is none other than the owner or owner of the property or car is secured.
    4. The beneficiary is the person who has been chosen to receive the payment of compensation in case of accident.
    5. Generally the policyholder (policyholder), insured and the beneficiary is the same. But it may happen that the husband is the policyholder, the insured and his wife a third party beneficiary.
    6. When appointing the driver is the person who drives the vehicle clearly identified in the policy legally is who has the liability risk that may result from driving the vehicle, for damages caused to third persons or property of others as a result of the circulation.