A High-Level Overview: What Car Insurance Covers (and What It Doesn’t)

Message from 05/30/2022

Motor vehicle insurance or, more precisely, motor vehicle liability insurance is mandatory. Partial and full insurance can be chosen voluntarily for car insurance. For an old car, which will only have a relatively low value, motor vehicle liability insurance is usually sufficient. If it is a more expensive car, at least partial comprehensive insurance will make sense. For a new car or an expensive used car, as well as an electric car, comprehensive insurance is probably the best option in most cases.

Photo source: pixabay.com/tama66

The price of the insurance policy depends largely on the individual characteristics. This may depend on the age of the vehicle owner, the occupation of the driver/owner, the place of residence and the vehicle itself. It also depends on the insurer and the corresponding rate. An individual car insurance estimate, like the one on Friday.de, can be very helpful if you want to choose the right car insurance.

What is the class without claims?
For every accident-free year, customers get a better class with no claims, which tends to make the premium cheaper. But if you cause an accident, you fall back into a more expensive category with no claims. Sometimes it can be financially worth paying for minor accidents yourself so you can keep the favorable class without claims.

What are the important benefits of car insurance?
You should know that many important car insurance benefits are not automatically included. Flexible services are certainly also a problem. In general, it is important that the sum insured is as high as possible and, in the case of comprehensive insurance, that there is a clause that establishes that the insurance company pays in full in the event of gross negligence.

How to save money
In fact, it is possible to save a lot of money on car insurance. For example, with an annual payment instead of semiannually, with a realistic deductible or with a workshop commitment, as well as some other discounts (for example, for parking in a garage).

The following examples of auto insurance benefits may be important:

The amount of coverage
For a relatively small charge, you can get coverage amounts higher than those required by law.

a rental car
A matching rental car can also be an addition to motor vehicle liability insurance. It may be that the sums insured by law for rental cars abroad are low in some holiday countries. With the addition, your own motor vehicle liability insurer can increase coverage for the borrowed car.

In case of gross negligence
Gross negligence is an important clause in partially comprehensive motor vehicle insurance and also fully comprehensive motor vehicle insurance. If you cause damage through gross negligence, partial and full insurance can reduce compensation or even reject it altogether.

In wildlife accidents
In the case of accidents with game animals, many partial car insurance rates only pay if they are fur game animals (for example, deer, deer or wild boar). However, this does not include accidents involving, for example, a lost dog, partridge, or stray cattle. It is advantageous if all animals are listed in the contract.

Replacement value compensation
The clause relative to compensation of the replacement value is important in partial and all-risk insurance. Because new cars in particular lose value quickly. If an accident later occurs, you will receive less comprehensive or partially comprehensive vehicle insurance. Therefore, the contract must provide compensation at replacement value and the period must be at least 12 months. There is something similar for high-quality used cars. The purchase price will then be reimbursed by the insurer.

consequential damage
With partially comprehensive simple fees, it is often the case that only direct damages are compensated. The resulting consequential damage can be much more costly. Therefore, indirect damages must also be insured.

Foreign Damage Protection
Foreign damage protection also applies as an addition to motor vehicle liability. If you are involved in an accident abroad through no fault of your own, your motor vehicle liability insurer may settle the damages with the foreign company. (pm)

Author: silva knopp


.

Leave your vote

Leave a Comment

Log In

Forgot password?

Forgot password?

Enter your account data and we will send you a link to reset your password.

Your password reset link appears to be invalid or expired.

Log in

Privacy Policy

Add to Collection

No Collections

Here you'll find all collections you've created before.