The 5 essential coverages in the insurance of a new car

The 5 essential coverages in the insurance of a new car

It is usually more entertaining for any driver to decide which car to buy than to study what insurance is best for your new vehicle. However, one thing is linked to the other, and that is that if the user does not get his car insurance right, he can lose a lot of money. And it is that beyond the particularities of each one, which range from the economic capacity of each driver to the type of vehicle that he has acquired, there are some coverages that we consider essential for any new car and that we will detail.

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Travel assistance is a coverage that includes the vast majority of Third Party and Extended Third Party car insurance along with Compulsory Civil Liability (the only compulsory coverage). Suppose it is included in the Basic Third Party of most insurers. In that case, it is because the fact of assisting your client when a breakdown -or any other circumstance- prevents the car from continuing to circulate is like any car insurance. However, this assistance service will be more or less complete depending on each company.

Keep in mind that Travel Assistance provides service on the one hand to the vehicle and the other to the person. In the person’s case, it will take care, for example, of providing an alternative means of transport so that the client can reach their destination after suffering an accident/breakdown. However, some companies offer this service from kilometer 0 (from the same address declared in the policy), but others will do it from kilometer 15 and others from 25. Similarly, travel assistance may be provided from kilometer 0 in case of an accident but from kilometer X in the breakdown.

In the case of the vehicle, although practically all insurance companies assist kilometer 0. This service may be limited to towing the car and not cover more common incidents that would prevent the transfer of the vehicle, such as lack of fuel, flat tire, lost keys, or dead battery. Regarding this last point, it may be the case that some insurer includes travel assistance from a kilometer 0.5 so that you would not be covered if. For example, you leave the lights on at night and, when you go to start the vehicle in the morning, it has no battery.

Finally, if a breakdown or accident requires leaving the car in the workshop for several days, it is convenient to know if the travel assistance cover includes the replacement vehicle. As it is a costly service for companies, almost none have it in their basic policy, although it is possible to contract it by paying a small extra cost.

Theft Coverage

Therefore, your car is new and can be quite a sweet tooth for “thieves.” Of course, the better (or more expensive) the vehicle, the more risk of being robbed. And we are not just talking about them taking the car, but that they can open it and take some of its accessories. Such as the radio equipment, that your wheels are stolen, or even that you are covered in the event of theft or attempted theft that has caused damage to the bodywork or upholstery.

The truth is that the theft of a new vehicle is more common than that of an old one, so including this coverage in your new car insurance will be an intelligent decision, and more considering that it does not suppose a significant increase in the final price of the policy.

From there, when you compare insurance, pay special attention to the services offered by this coverage. For example, almost all companies cover vehicle damage due to theft or attempted theft. However, in the case of total loss (total theft of the vehicle), and although most insurers will offer the value again during the first two years, some may compensate with the market value (lower) from the second year. Likewise, an important aspect to consider is whether the service includes coverage for non-standard accessories since often these must be detailed in the policy, and their coverage will mean an increase in its price.

Fire Coverage

In this case, unlike theft, being a new car does not incur a greater risk of loss. However, contracting it is just as convenient since the money to be recovered in an accident is much more important than the slight increase in price that includes the coverage in the policy.

This means that, in the vast majority of cases, since it is a new vehicle, the insurer will compensate you for the new value in case of partial or total damage. If you do not have this coverage contracted, if you have the misfortune that your car is affected by a fire without a third party assuming the fault, your insurer will not be responsible, and you will have to bear the repair costs yourself.

Again, you must remember that even if you have purchased coverage, many companies will not cover non-series accessories that have not been declared explicitly when contracting the insurance.

Moon Coverage

Together with Theft and Fire, the Moons coverage is the one that complements Civil Liability and Travel Assistance in Extended Third Party insurance. Again, it is quality/price ratio makes it one of the essential covers for a new vehicle since its cost is meager. Instead, it will allow the insurer to pay compensation for damage caused to the windshield, side windows, and rear window. 

Also, this coverage includes workshop labor and, in almost all cases, damage to the sunroof if it is a standard part of the car. Some companies offer their policyholders the advantage of repairing their windows at home, thanks to agreements with specialized companies. For example, Direct Seguros has a mobile repair shop service, which it provides through Carglass.

Own damage

You already know that Own Damage coverage is synonymous with All Risk Insurance, which in turn is usually the antonym of cheap car insurance. Based on this premise, in the case of a new car, what is affordable can be expensive.

Indeed, unlike in the case of Windows, Fire, and Theft, including Own Damages in the policy does mean a significant increase in its price. In addition, you should bear in mind that this coverage deals with damage to the vehicle that is not attributable to other ranges, so if you have suffered damage to your car related to fire, theft, or broken windows, these would already be covered. Even without having comprehensive insurance. So why hire Own Damages?

Even if you consider yourself a good driver, you can eventually have an accident where you are at fault, and only this coverage would cover the repair costs. In addition, in the event of a total loss, as it is a new vehicle, practically all insurers would indemnify you for the new value the first year and many of them also during the second.

On the other hand, if you want to save money on the All Risk insurance, you can hire it with excess, which will reduce the policy’s price but will force you to face part of the repair. Of course, if you do, remember that many insurers divide the vehicle into five parts: front, rear, left, right and roof. Ensure that your excess of 150 euros (or 300, or 400) forces you to pay 150 euros in total, not 150 euros for each part if the collision has damaged several sides of your vehicle. In this sense, some insurers stand out for offering certain advantages. This is the case of Axa All Risk Car Insurance, which applies to a single deductible of 500 euros for scratches. It does not matter how many times you repair the car: you will only pay the first time.

By aamritri

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