All-risk auto insurance is the most complete package that a driver can take out for his vehicle. It offers an excellent level of protection to the driver, the vehicle and possibly to a third party involved in the accident.
That said, before taking out such insurance, it is essential to know its other advantages, but also the disadvantages associated with it. Learn more about all-risk auto insurance later in this file.
Benefits of all-risk car insurance
It is important to notify that offers ofCar Insurance all risks offered by the companies may vary even if they all have high levels of guarantees. However, there are certain aspects which are common to them.
Material damage coverage
Generally, all-risk auto insurance contracts provide basic damage coverage. The latter implies that the insured is compensated for any damage to his vehicle when an accident occurs for which he is responsible.
In the event that the loss is caused by a third party, the insurance company of the person at fault will be obliged to bear all the costs of compensation to be paid to the other party.
This is a solution that covers all bodily injury as well as medical expenses generated by the care of the insured.
This car insurance also covers the costs of hospitalization, surgery and the payment of compensation in the event of sick leave. The driver’s guarantee can also cover funeral expenses in the event of death.
The possibility of readjusting the different insurance options
As mentioned earlier in this article, the offers contained in the formulas can vary according to the companies. However, the insured has the right to add additional guarantees to his contract in order to make his coverage more complete.
These guarantees include:
- The “any accident” damage guarantee which is valid regardless of the time, place or nature of the accident occurring;
- The “glass breakage” guarantee which covers the repairs or the complete replacement of the windshield of the car as well as the side windows of the car;
- The “theft” guarantee which covers cases of theft or attempted theft of the car. However, the validity of this guarantee is conditioned by the provision of proof of the break-in;
- The “fire and explosion” guarantee which concerns damage caused by fire, explosion, lightning, etc. ;
- Legal protection implies that the insurer offers financial cover to the insured in the event that there is a lawsuit following a dispute related to the car.
Click here to view a comparison of this type of insurance to third-party auto insurance.
The disadvantages of all-risk car insurance
It is obvious that this formula allows those who subscribe to benefit from many very useful guarantees. However, it also has some drawbacks that are important to highlight.
The particularly high cost of insurance
This is the first disadvantage of taking out all-risk car insurance and it leads some drivers to resign themselves to choosing more economical formulas.
Indeed, given that this insurance offers significant coverage, its cost can be particularly high (up to €1,000 per year).
Taking out such insurance does not automatically imply being compensated for all types of situations.
Indeed, there are exclusions of legal guarantees that can invalidate the car cover. Some are defined by law and others are freely defined by the insurance companies themselves.
Among the exclusions of legal warranties, we can mention:
- Driving the vehicle without having a valid driver’s license;
- Non-compliance of the driver and/or vehicle with basic safety conditions.
It is important to note that the consumption of alcohol or narcotics is not automatically seen as a legal exclusion of guarantee by the insurance companies.
However, in most cases, it leads to one or more loss of cover as well as a forfeiture of the compensation that the insurer should pay to the insured. This article provides information on the specifics surrounding the refusal to indemnify for exclusion of warranty.
What you must remember
Even if this insurance formula is interesting on many points, it is essential that the person concerned precisely identifies his insurance needs before proceeding with any subscription.
Opting for this insurance must depend on several factors such as the age of the vehicle, the level of risk presented by the sector, the experience of the driver, etc. It is especially recommended for classic cars, high-value cars and new cars.
Indeed, all-risk car insurance will considerably reduce the costs associated with its repair in the event of an accident, for example.