Guarantees for your car insurance

Guarantees for your car and motor insurance

When we take out car insurance, it is common to ask: What guarantees does my policy really include? And most importantly: Am I well covered for any unexpected situation?

This guide to The Insurance Web will help you understand the main guarantees you can include in your car insurance. Many people don't know the real scope of their policy, and that can lead to unpleasant surprises. Read on to find out which coverages exist, which are compulsory and which are optional, and what you should look out for before taking out a policy.

Not all car insurances offer the same guarantees

The guarantees for your car insurance can vary greatly from one insurer to another. Some cover more, others less. That is why it is essential to read carefully the Special Conditions and the General Conditions of your policy. If you already have insurance in place, check these documents to find out exactly what is included.

Watch out for exclusions

Each guarantee also has its exclusionsi.e. situations that are not covered. Reading them will help you to avoid future scares.

Basic and optional car insurance guarantees

Compulsory Civil Liability Insurance (R.C.S.O.)

It is the coverage minimum required by law. It covers damage you cause to third parties:

Personal injuryup to €70,000,000 per claim.
Material damageup to €15,000,000 per claim.

Important: It does not cover damage to your own vehicle or your injuries if you are the driver responsible for the accident.

Voluntary Civil Liability (R.C.S.V.)

This is an additional guarantee that extends the cover of the compulsory insurance. It normally covers up to an extra €50,000,000. Some insurers also include liability for the trailer or caravan if it weighs less than 750 kg.

Always consult the Special Conditions to find out whether this coverage is included or must be purchased separately.

Legal defence and claims for damages

This warranty covers legal expenses if you have an accident. It includes:

Defence in judicial, administrative or extrajudicial proceedings.
Payment of bonds, costs and fees.
Claims for damages to third parties.

You can choose your own lawyer, but the insurer sets a maximum limit on expenses. Some insurers allow you to extend this limit.

Many policies also include the defence against traffic finesThe Committee has also been involved in the development of the European Union's legal framework, such as legal advice and appeals.

Accident insurance for driver and occupants

Remember that the driver is not covered by compulsory insurance. This cover protects the driver and, in some cases, the occupants against:

Death.
Permanent disability (total or partial).
Medical-pharmaceutical assistance.

Currently, many insurers only cover the driver, but it is possible to extend cover to all passengers if you wish. The sums insured vary depending on the company and the option you choose.

Travel assistance: much more than a tow truck

This guarantee may seem simple, but it offers much more than a trailer:

Vehicle performance

On-site repair if possible.
Towing to a designated workshop.
Rescue of the vehicle.
Sending parts abroad.
Repatriation of the vehicle.
Replacement driver if no one can continue driving.

Benefits for individuals

Hotel accommodation if the vehicle cannot be repaired on the day.
Transfer to continue the journey.
Legal defence abroad.
Health repatriation.
Sending a family member for hospitalisation.
Reimbursement of medical expenses abroad.
Early return due to the death of a family member.
Sending forgotten objects.
Transmission of urgent messages.

What if you don't go with the car?

Some insurers offer assistance even if you are not travelling in your vehicle. For example, if your spouse has an accident while travelling in another mode of transport, he or she may be covered.

Check the territorial scope

Normally the coverages for the vehicle include Spain, Europe and Mediterranean countries, and for persons, even the whole world.

Make sure you also know who has the status of insured in each case. It is usually the policyholder, his/her spouse and direct family members who live with him/her.

Always consult before contracting

Each insurer has its own conditions, limits and coverage. So, if you have any doubts about which guarantees for your car insurance may be of more interest to you, it is best to contact us. At The Insurance Web We will be happy to advise you to find the policy that best suits you.

Vehicle Windscreens:

This warranty covers the repair or replacement, as well as the cost of fitting the vehicle's windows, understood as the front windscreen, the rear window and the side windows.

Some insurers may also cover tinted windows and sliding sunroofs when they are standard or when they are expressly declared and included as an accessory. These and the translucent elements of the bonnets (in convertible vehicles) could also be excluded. It is therefore advisable to check the general conditions of your policy carefully.

Insurance companies have agreements with a wide range of specialised repair companies. In many cases, they take care of all the necessary arrangements with the insurers themselves, sometimes even providing additional useful services, such as a home service.

Fire:

This guarantee covers combustion or flaming, explosion and even lightning damage. Whether the damage is partial or total loss.
For the latter case, each insurer will specify in the general conditions, their valuation criteria for the vehicle, depending on the age of the vehicle, which can be "for example" 100% of the value as new for the first two years and 100% of the market value for the rest. Although there are many variations, some insurers even offer more than 100% of the value as new, others of course offer less.

When it comes to valuing a vehicle, in order to obtain its "market value", the insurance companies (appraisers) usually resort to the GANVAM (National Association of Motor Vehicle Dealers, Repairs and Spare Parts), which is a book where the value of each vehicle is listed according to the make, model, year of manufacture, etc...

The insurers also refer to the percentage of valuation applicable to the accessories that the vehicle may have, whether they are standard or optional and have been expressly declared in their particular conditions when contracting the policy.

It is not usual, but possible, that some insurers apply an excess in this guarantee. It is advisable to make sure.

Theft:

The purpose of this guarantee is to compensate the insured person for the damage or loss of the vehicle in the event of its unlawful removal or attempted removal.

That is to say, the insurer will compensate you if your vehicle is stolen and it does not appear within the established period of time, which is usually approximately 30 days. If the vehicle appears before this period, the insurer will then proceed to compensate for the repair of the damages that the vehicle presents due to this theft.

In the same way, if they only cause damage to your vehicle without actually stealing it, for example they have forced the lock, or broken a window, to gain access to the interior of the vehicle and steal personal objects or accessories, you should know that the insurer will cover the damage produced, but will not compensate you for the personal objects, nor for those accessories that did not come as standard in your vehicle and have not been expressly declared in your policy.

It is possible that some insurers may limit this cover by applying an excess, so please bear this in mind.

Also the valuation conditions in the event of a claim that each insurer specifies in their general conditions, i.e. the percentage of the vehicle's value that they will cover depending on how old it is. For example, they could compensate with 100% of the value as new for the first two years and then the rest of the years at 80% or 100% of its market value (there are many variations and possible combinations). As well as the valuation for accessories, tyres, battery, etc...

Own Damage (with and without excess):

This is undoubtedly the guarantee that offers the most peace of mind in car insurance. By means of it, the insurers cover the damages that the insured vehicle may suffer, whether it is on the road or at rest.

However, it is worth noting that there is a big difference between contracting with or without franchiseThe exact consequences and the way in which the excess is applied can vary considerably depending on the type or amount of the excess applied, but you should also be aware of the exact consequences and the ways in which the excess is applied.

The best way to make it easier for you to understand is to give some examples.

Imagine that you have just bought your new vehicle and you take out an insurance policy at All Risks with an excess 200 per claim.

Case 1: You are involved in an accident with your car, which even flips over several times. The vehicle is damaged all over. The repairs amount to €5,900. In this case, the insurance company will only deduct €200 from the compensation. It will pay €5,700 and you will pay the €200. All the damage was caused by the same act or incident.

Case-2: As a result of parking and driving for several months, your vehicle has suffered some scratches and scrapes all over, so one day you decide to report the damage to your insurance company to have it repaired. It will then be the expert appointed by the insurance company who will determine the number of claims and therefore the number of deductibles to be applied. It is not surprising that if the entire vehicle has to be painted, the applicable deductibles are up to 5. In this case, if the complete repair amounts to €1,500 and they deduct 5 deductibles of €200, you will have to assume €1,000.

It is possible that some insurers limit the number of applicable deductibles, we advise you to be aware of this fact and also to know if these parts will affect the bonus of your insurance.

Imagine now that you have taken out insurance at All Risks without excessIn any of the cases described above, you will not have to pay anything at all for the repair of the vehicle, regardless of the number of claims that the insurer considers necessary to carry out the repair.

In this modality, as in the Fire and Theft guarantees, you will not be covered for any possible accessories that are not standard and have not been expressly declared in your policy.

Finally, also check the valuation conditions in case of loss that each insurer specifies in their general conditions, i.e. the percentage of the vehicle's value that they will cover in case of "total loss", depending on how old the vehicle is. For example, they could compensate with 100% of the value as new for the first two years and then the rest of the years at 80% or 100% of its market value (there are many variations and possible combinations).

Total Loss:

This guarantee, which is typical of car insurance, is perhaps not very common or well known.

By means of this modality, the insurer will compensate you for the total loss as a consequence of the damage suffered by your vehicle when the value of the repair exceeds the market value of the vehicle at that moment.

Here is an example to make it easier for you to understand.

Let's assume that your car is a 2007 car with a current market value of €6,500. Let us assume that you are at fault in an accident and therefore the damage to your vehicle cannot be claimed from the other party.

By means of this guarantee, if you have it contracted, your company would proceed by means of an expert to appraise the damage to your car, and there could be two cases:

1º- If the value of the repair exceeds 6.500 € (market value), the insurer will consider your vehicle as a total loss, and will proceed to compensate you for this amount.

2º- If the value of the repair is less than €6,500, then you will not be entitled to any compensation.

Withdrawal or deprivation of driving licence:

Your car insurance may include the guarantee of withdrawal or deprivation of your driving licence.

This guarantee will cover the driver stated in the particular conditions of the policy and only when such loss occurs with the vehicle insured therein.

This is a guarantee to be taken into account with the new system of deprivation due to loss of points. If you drive several vehicles, we advise you to take out a personal insurance policy that covers all of them.

Replacement Vehicle:

Some insurers may offer you, as an additional or optional guarantee, a replacement vehicle in the event of an accident or even theft. The usual practice in these cases is to limit the period of days to which you would be entitled.

Similarly, coverage may not be immediate, and requirements may have to be met, which each insurer will clearly state in its general conditions.

As you have seen, the guarantees for car insurance are very extensive, and although we have detailed only the most common ones, it is possible for insurers to incorporate others in addition.