Insurance Articles

At the time of getting auto insurance, many people do not know the reasons for getting it. In order to clear up these doubts, it is important to remember that having an automobile is necessary since it is an obligation established by most traffic laws, and it is also convenient to protect the patrimony of the policyholder and/or the driver.

The principal aims of the acquisition of car insurance are to keep the policyholder or the driver protected from what he should owe to a third party as a consequence of the damages caused by the insured vehicle, or by the load that it transports in proper conditions. This will also include the facts which appear in the agreed term that may lead to civil responsibility at the expense of the driver. This type of insurance is indispensable for the indemnification of the vehicle because of fire, accidents, or theft.

Although there is a wide range of offers on the market, one of the issues that should be taken into consideration at the moment of choosing automobile insurance is the coverage. Commonly, the civil responsibility does not cover the damages to third parties’ goods nor the claims for damages to third parties transported with profit motive. Regarding the different options of the possible risks that may be covered, some of them are the material damages (it covers the property damages that the vehicle suffers, which is assured as a result of accidents like scratches, crashes or collisions, and sometimes the ones that could be generated due to lock-outs or strikes.

In case of fire, the insurance covers the material damages as a result of explosions and direct or indirect contact with fire. Another advantage of the car insurance is the ability to be protected against theft or robbery of the car, as well as its original parts. The majority of the options available insure the car against robbery or the theft of its original parts, but does not cover the theft of the windshield wipers, fuel tank, mirrors, and other accessories that are included in the original equipment provided by the factory. Besides, it is also not allowed to insure stereos or any music equipment.

All the risks mentioned could be covered totally or partially. It is important to read carefully the clause that defines the total damages, since there are two modalities. The first one considers the partial damage if the value of the damaged unit overcomes 20% of the value of sale in cash at the market where the car had been assured. If not, it would be considered total damage. For other entities, the total damage would be only when the damage reaches 80% of the cost of the vehicle at the moment of the accident.