How many types of car insurance are there and which one suits me?

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You need to ensure your car; you do not want to pay for what you are not going to use, but do you not give up or avoid services that you will soon miss? Knowing the types of insurance that exist and what each of them entails is the first step in choosing the perfect protection for your car.

1. Third-party insurance

This first type of policy is the simplest and most essential, as its name indicates. It is the minimum insurance that by law, every car must have to circulate. It is known as third party insurance or necessary insurance.

All third party insurance must include the civil liability insurance required to circulate. This type of coverage covers material and personal damages that the insured car causes to third parties. The insured vehicle and the driver himself are outside the protection of the compulsory insurance.

This basic insurance usually includes an extension of civil liability known as additional civil liability that economically expands the insured’s liability insurance.

Civil liability for trailers and caravans, and objects transported in the vehicle, is usually included in third-party insurance, legal defense, damage claims, and travel assistance.

Driver insurance also begins to be incorporated into third-party policies, but this is not always the case, so it is crucial that you consider this detail when comparing and choosing your car insurance. 

The claim to the Insurance Compensation Consortium for damage to the insured vehicle or personal, as a result of specified natural disasters, terrorism, or actions in peacetime of the Armed Forces and the State Security Corps, completes the coverage of which enjoyed with third party insurance.

2. Extended third-party insurance

By the needs and demands of current drivers, insurance companies have increased their offer of coverage to third parties by offering a somewhat less necessary type of policies, but not as comprehensive as those called all risk.

In this group of extended or complete third party car insurance policies, you find a comprehensive set of coverages that you can choose independently or in package format, according to the different companies.

The coverage of the total or partial breakage of windows or windshields, fire insurance, or the repair of damage to the car if it runs over an animal, for example, is the most common in extended third-party coverage.

The most comprehensive third-party policies offer the driver more specific services and assistance such as the civil liability of the policyholder and declared driver of a cyclist, the civil liability of the minor child driving without a license, defense in traffic fines, subsidy for deprivation of permission driving, theft of the vehicle, cleaning the car for the transfer of the injured or the interest and expenses of the loan to repair the car.

This type of third party insurance with extended coverage is exciting so that the driver can complete his protection and that of his vehicle depending on its use, priorities, and needs, without giving up anything essential, even if you choose a third party policy.

3. All risk 

Full risk car insurance offers a comprehensive range of coverage, assistance, and services for the driver and his vehicle. They incorporate, of course, the obligatory ones such as civil liability insurance, and all those that complete third-party policies such as broken windows or theft of the vehicle.

The full-risk policies include coverage that does cover both the driver and the insured car itself in the event of being involved in an accident regardless of whether or not it is the cause; Likewise, even if there are no third parties, as in the case of blows or damage during a parking lot, the fully insured car is protected in these circumstances as well.

Efficient and commonly used services by drivers, such as the replacement vehicle or the defense of traffic fines, are also facilities enjoyed by all-risk car insurance holders.

There are two primary modalities within comprehensive insurance. You can find full risk policies with or without a franchise. Duty-free insurance may be cheaper in principle, but it has the disadvantage that it only covers part of the expenses related to the claim.

Whenever the repair or assistance costs are less than the amount set-prime- in the contract – for example, 300 euros- it is the insurance holder who has to take care of the invoices.

Full risk insurance without excess is the most complete and adequate that can be contracted to protect a vehicle; the responsibility for the protection of the insured car falls exclusively and integrates on the insurance company.

The maximum coverage for any eventuality or possibility is included in this type of insurance that responds to all the needs and demands of drivers regardless of their circumstances.

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Insurance companies market to complete their offer of car insurance, independent policies, and with different coverage for specific drivers such as young drivers, experienced drivers, professional drivers, or green cars. This type of contract contains cheaper premiums or advantages for satisfied clients, in addition to exclusive bonuses or coverages of great interest.

Car insurance can, therefore, be fully comprehensive or third-party, but keep in mind that within each of these two options, there are a large number of details that can change from one company to another. On the other hand, the insured must pay attention to the economic amounts that are guaranteed – spending limits – in each of the coverages. That can make a significant difference in the final price, but also a very different degree of protection. 

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