Car insurance: how does it work?

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How is car insurance defined?

Auto insurance is a contract signed between an insured, the motorist, and an auto insurance company such as GMF for example, which covers material and bodily damage for which the driver may or may not be responsible in the event of a claim. . It also protects any third parties involved in the accident, including passengers and drivers. Included in a contract, the car insurance formula is defined and completed according to different elements.

The insurance company notably takes into account our driver profile, whether it be our age, the date on which we obtained a driving licence, our driving frequency and environment, the statement of information (history of claims) if you have already been insured before, but also information relating to the insured vehicle such as the registration number, the model, the power or its date of entry into service. Once this data has been sent to the insurer, the latter will present you with the formulas and guarantees best suited to your profile and your driving habits.

The different car insurance formulas

As each driver is different, there are three main categories of car insurance that he can customize according to his needs. Considered as the legal minimum cover, third-party insurance includes the policyholder’s civil liability cover and at the same time protects the third parties involved financially, materially and physically (hospitalization costs).

Intermediate insurance covers more damage but only those included in the policyholder’s contract. Many guarantees can be added, including theft, fire, glass breakage, natural disasters or even personal belongings. The more guarantees you subscribe to, the higher the insurance premium will be. In return, your insurance company will cover the compensation costs calculated on the basis of the declaration of the insured, the amicable report as well as the complete report of the expert. Finally, all-risk insurance is the most comprehensive of all since it offers maximum coverage in the event of material, physical or environmental damage.

How to choose your insurance?

The choice of insurance must be made with care. Since its role is essential in the protection of the driver and third parties, it is important to ensure that the formula chosen best meets their expectations. So take the time to determine your profile and assess the risks before starting the prospecting phase.

Once you have identified what you need, don’t jump on the first offer and take the time to compare several quotes. The same insurance covering the same guarantees may not be offered at the same price depending on the insurance companies. Also, do not neglect the clauses of the contract and the exclusions of guarantees, sometimes listed in small, you could have unpleasant surprises.

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