Imagine that you are going to buy a car. First, choose whether you want new or used. It then sets a budget and from there compares various cars on the market. The next step is the purchase: a car loan is usually used to make the purchase and, finally, an analysis of the insurer’s options for underwriting coverage.
If you take the road without civil liability insurance, you will incur a serious infraction, which will result in a fine of 500 to 2,500 euros and the possibility of confiscating the vehicle. However, there is another type of insurance that is optional and extends the usual guarantees: this is insurance against all risks.
What does “insurance against all risks” mean?
Also known as “self-injury insurance”, it allows you to choose additional coverage in addition to the mandatory coverage, which is not normally covered by this policy. It’s more expensive? Yes. But it is (probably) the best option for those who are the most cautious and demanding with their excellent vehicle, considering that the car is much safer (unless the end of the world… so there is not much to do!).
On the other hand, civil liability insurance (the most common, and we usually have it), also known as “third-party insurance”, only guarantees that, in the event of an accident, damages to third parties are covered, but never to the condemned damage to the person. . So if this is your insurance and when you have an accident and you are at fault, the insurance company does not cover the damage done to you and your vehicle, only the other driver.
What will you regret not having?
Self-destruct insurance was born out of the need to manage risk and protect individuals from financial loss and other contingencies such as:
1) Natural disasters
Imagine you live in Lisbon and it’s mid-December and it’s cold and pouring rain. A storm that lasted more than 24 hours caused flooding in downtown Pombalina, where he parked his car. With liability insurance, it’s time to say “you’re gone!”.
2) Robbery or theft
After a long day in the capital and an hour at Fertagus, Joel arrives at Palmela station, heads to the car park and thinks “Dude, where’s my car?”. Well, it was stolen, which isn’t covered by normal liability protection.
3) Own damages
If you have civil liability insurance, it covers the damage you cause to third parties in the event of an accident. But, for example, if you make a small mistake like Pedro, who was parked in the center of Porto, on a steep climb, he ignored the clutch point and hit the rear of the car on a pole, leaving two dents in the trunk. , only the All Risks Warranty covers this situation (because it is personal injury).
Are you one of the victims of the 422 cars burned at the Andansas Festival? Even if not, imagine yourself in this situation. Burnt out vehicles are lost vehicles. This is where the phrase “set the machine on fire” is no longer interesting, and self-injury insurance can come in handy.
Imagine the same thing happening to you, like José, when he parked his beautiful car in an alley of a troubled neighborhood for a few minutes, when he got there, he received a gift: the graffiti on the left, which even prevents his visibility. To make matters worse, he immediately activated all his risks.
6) Isolated glass breakage
For example, in case of a cracked or cracked windshield, with this protection, the cost of repair is zero for the insured.
7) Extended travel assistance
Unlike normal coverage, it includes many additional services such as trailers, sources of useful information (for example, if you want to know which pharmacies are open on specific days), and ongoing medical advice.
In addition to the above, personal injury insurance may also include other more specific protections in additional contracts, such as: pet protection; granting a replacement vehicle; providing additional assistance in the event of a fuel error or loss of keys; among others. It’s a matter of getting information from insurers and comparing them.
Do you need to be rich to get this protection?
To give you an idea of how much your damage insurance might cost, we performed a simulation at Seguro Directo, assuming that the vehicle in question is dated November 2015 (so it is relatively new), such as an Audi A3 S Line diesel, driver 30 years old, driving 10,000 to 20,000 km a year, no garage at home.
Includes mandatory civil liability of 6 million euros, breakage of insulating glass, normal travel assistance, driver insurance up to 25,000 euros, legal protection and a 2% deductible for three protections such as theft or theft, fire, lightning or shock, collision or rollover, the annual premium for this self-destruction insurance is €638.77.
It is also important to point out that the premiums also depend on the deductibles of the insurers, which can vary greatly, that is, a single policy will never cover everything that is possible without paying anything for the insured and imagined risks.
The deductible is the value of the loss borne by the customer. In practice, in the simulations carried out, in the event of a fire causing damage to the vehicle, the insured would cover all risks with 2% of the value of the loss.
Holding All Risks: How to Make a Decision?
Car insurance, especially if it is against all risks, is an investment, so it needs to be thought about and compared.
In addition to the premium amount, this choice must take into account several factors related to the type of coverage best suited to each driver’s profile. If you live in a troubled neighborhood, you will definitely value a product that covers vandalism and theft or theft. In fire-prone areas, this is also an aspect to consider.
Civil liability insurance is the most used by the Portuguese because it is also the most affordable and, in fact, for an old car, it is not worth buying damage insurance on your own. Therefore, the decision is also related to the characteristics of the vehicle.
Sometimes insurers also have promotions and prices even vary from month to month, in which case it is important to be aware and always try to negotiate a premium in your favor in terms of value. You should do a market analysis in advance and see which insurers offer such products.