Car insurance is insurance that covers damage done “with” or “to” a motor vehicle.
What is it, how does it work, what are the different types of car insurance? We’ll explain in this file.
The main function of car insurance is to provide compensation for damage that may be caused to a third party by a driver and/or one of his passengers. It covers the costs of injuries caused to an individual (hospital treatment costs, etc.) and in case of material damage (to other vehicles, but also to real estate, etc.).
How to subscribe a car insurance ?
Today, there are many insurers whose main mission is to offer car insurance to drivers. The car insurance contract (guarantees offered, options, rates, etc.) varies from one driver to another. The vast majority of insurers take into account the experience of the driver (young or experienced driver), but also the number of kilometers driven in a year, the type of vehicle insured (city car, luxury sedan, etc.), the driver’s past record (number of accidents in his or her driving life), etc.
It is therefore very important when choosing a car insurance to compare offers. In recent years, the trend in the field of car insurance has been towards a maximum of “customization” to reduce the rates for good drivers and increase them for drivers who are not very careful on the road. It’s a bit like the “bonus-malus” principle, but even more personalized.
Car insurance: what guarantees?
In addition to the compulsory third-party liability coverage (which is different from private life liability), car insurance can offer different types of coverage that are more or less useful depending on your situation. There are the classic guarantees such as “glass breakage” or protection against theft and fire, but also other more specific guarantees such as the “natural disaster” guarantee.
As for any type of insurance contract, we can only advise you to carefully study the clauses and coverage of these guarantees before subscribing.