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Auto Insurance

What valuation of the vehicle do insurers after a total loss



If we look at the automobile policy, we can verify that many of the covers included refer to the market value of the car or to the new value . At other times, we talk about replacement or market value. Do you know how your insurer is going to value the car in a total loss ? The answer is described in the policy, but it will help you to know what the Insurance takes into account when evaluating the vehicle after an accident.

Who more and who less has a special affection for their car, either because it is our preferred means of transport, because it makes our work easier and represents the best ally of family leisure. Every driver knows better than anyone the value that their car has for him, but we may not have noticed how Insurance values ​​our car . And it is important.

When you buy a vehicle it is easy to give a number. You have as a best reference the price you have paid for your car to the dealer, although that value lasts for a very short time. In fact, at the same dealership a new car can lose 10% of its value or more just because it is registered and becomes a kilometer zero.

In addition, the passage of time and use undermine the valuation of a vehicle significantly. So the price of new cars is very different from used, pre-owned or second-hand cars.

Car insurers also take this depreciation into account when valuing a wrecked car. In the coverage for loss of the vehicle or for Own Damages, the valuation of the vehicle is key when determining whether, in order to comply with the contracted coverage, the repair of the car or compensation that compensates the loss of the vehicle.

This is because a clause may be included in the Insurance condition that enables the company to declare the car totally sinister if the cost of the repair exceeds the value it gives to the vehicle.

In the event that the damaged vehicle is not the culprit of the accident, things change, since when the culprit is the opposite vehicle, the other party has the right to demand that their car be repaired.

Be that as it may, if unfortunately an accident leaves the car for scrapping or suffers a devastating fire or it is stolen from us and does not appear, then the user is affected by the way the car is valued by his insurer. That is why it is so important to know the valuation of the vehicle that the Insurance can make us.

In general, the value that the insurer gives to a car after a total loss is calculated based mainly on the age of the vehicle at the time of the accident.

The details of the valuation of the vehicle in an accident are established in the conditions of the contract, although insurers generally apply the following valuations to the car, depending on the circumstances:

  • The value to new
  • Venal value
  • The replacement or market value
  • The improved venal value

When the  Auto Insurance applies the value to new in the calculation of compensation after a total loss , it is valuing the vehicle for an amount equal to the cost of a new car with the same characteristics and including all taxes (VAT and registration).

In addition, if we have declared in the policy the accessories of the car that are not standard or these are included in the policy, they will also be included in the compensation in case of loss of the vehicle.

If the car in question is no longer manufactured, the Insurance must indemnify the amount corresponding to the equivalent model that replaces it. In addition, this payment can be made in money or with a new car.

The insurer applies the venal value to a car that is totally sinister in an accident, when it occurs after a period of time from its registration that is established in the policy.

When valuing the car at the market value , the Insurance applies the sale value of a vehicle with the same characteristics and age, at the time of the loss. We talk about model and year, regardless of other aspects such as mileage or vehicle maintenance.

In this case, non-standard accessories are also included if they were described in the policy. There is also an improved market value, in which some insurers increase the market value of the car by a percentage of their compensation.

In order to calculate the venal value of the car , it is normal for the insurance company to take as a reference tables that are published each year in the BOE with the valuation of hundreds of more or less old car models. These tables show the value in euros of the vehicles, according to cylinder capacity, year, horsepower, etc.

In this case, the purchase price of a car with the same characteristics and age as the damaged car is applied. As in the venal value, it does not matter the kilometers that you have or if the car is more or less careful, and non-standard accessories can be included if they are included in the policy.



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Auto Insurance

What does Third Party Car Insurance cover? Compulsory Civil Liability




When insuring a car, Third Party Insurance is the cheapest option. It is a basic Insurance, which includes the Compulsory Civil Liability coverage required by law in order to circulate. Although every time we find offers of policies to Third Parties with more guarantees and incorporated services. So today we are going to really see what Third Party Insurance for cars covers .

Mandatory Insurance is normally associated with this type of car policy. However, insurers have long offered basic insurance that is cheaper , but that includes more benefits to attract their clients. The idea is to attract customers with these offers who do not want or cannot spend more money to insure their vehicle.

Although Third Party Insurance is not, in essence, a compulsory Civil Liability Insurance for automobiles that will respond in the event of an accident involving a third driver, for damages caused to this, in the event that the accident was caused by the driver of the insured car.

The Compulsory Insurance covers the Civil Liability of the driver and the owner of the car (even if they are not the same person) for the damages caused to third parties in a traffic accident that has been caused by the insured.

When we talk about Third Party Damage , we mean:

Damages produced in other vehicles (such as dents and damage caused to other cars), damage to the property of other people (damage to walls, lampposts, street furniture, etc.) and wounds or injuries to animals run over.

It covers all kinds of injuries caused to other people involved in the accident, be they pedestrians, occupants of another vehicle or passengers of the insured car, with the exception of the driver.

It is important to highlight that the compulsory RC Insurance only covers the damages caused to the victims and that in no case will it compensate the person responsible for the accident for the own damages that may be suffered, either in their vehicle or in their own person.

For this reason, and to complement the Third Party Insurance, it is advisable to incorporate Driver Insurance in the policy, which at least offers coverage to the person behind the wheel of the car, regardless of their responsibility in the accident. If you are interested, we will tell you how Driver’s Insurance works in cars .

If what we want is to protect the damages that the vehicle may suffer, then it would be necessary to level up (and also the price) and subscribe an own damage policy . Here you have more information about this Comprehensive Insurance .

The Third Party Insurance Liability coverage offers quite a wide coverage. Our insurer will be responsible for paying compensation for material and personal damages caused by the insured in a claim, but up to a limit set by law.

Currently, the maximum amount of coverage varies depending on the damage caused:

In the case of coverage for personal injury and death compensation, the maximum amount per claim, regardless of the number of victims, is 70 million euros.

The coverage for damages to other vehicles and goods is covered up to a maximum of 15 million euros of compensation.

It is important to know the limits of the compensation, because if the amount contributed by the insurer was not enough to cover the civil liability of the driver.

That is, if you do not have Voluntary Civil Liability Insurance , a complement to the Mandatory Insurance that includes practically all the main insurers. If you did not know it, this post on  RC Voluntary Insurance can be useful for you.

In addition to establishing limits on compensation, in Third Party Insurance there are various cases that are not covered by this policy.

For example, there are cases in which Compulsory Civil Liability Insurance does not cover damages to third parties when those affected are close relatives or personal objects of the insured and his family.

In addition, damages to the spouse’s car or property corresponding to the Policyholder, Driver and Owner listed in the policy would not be covered when they are different persons.

Other exclusions from Third Party Insurance have more to do with the circumstances surrounding the claim. In this way, accidents that have occurred as a result of the consumption of narcotic drugs or the alcohol rate is exceeded are excluded from coverage.

If the car has been stolen and the thief causes an accident, the insurer would respond, but would repeat against the driver for the damage caused in the accident.

As you can see, there are several cases in which the Mandatory Car Insurance does not cover. If you want to go deeper into the subject, this post on what Third Party Insurance does not cover will be very interesting.

When insuring the vehicle, there are many factors that influence the choice of the ideal policy. But it is possible to establish a profile of the driver interested in purchasing basic insurance for your car .

The Automobile Insurance Third Party is often hire vehicles that already have a few years and does not deserve the punishment include guarantees covering the loss of the car, because its market value has shrunk over the years.

They are also used in those cases in which the user wants to pay as little as possible in the Insurance and prefers a cheaper policy, although their coverage is very basic.


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Auto Insurance

How to cancel Auto Insurance correctly




Disregarding Auto Insurance is becoming more common. There are cancellations that are motivated by the loss or sale of the vehicle, but most of the times it responds to a change of insurer. It is an upward trend, especially when we are looking for a better service or better prices to save when contracting a new policy. However, it is important to cancel the Insurance properly to avoid problems.

Many people think that to cancel the policy it is enough to stop paying the receipt of the Insurance, but it is a mistake. The truth is that unsubscribing from Auto Insurance can be more complicated than expected if we don’t do things right.

Devolving the receipt of the Insurance without informing the insurance company is not the way to cancel the policy. In addition, it can be expensive because the insurer of the car with which we no longer want to continue can claim the full amount of the policy by not having communicated in time and form our intention not to renew the Insurance.

To avoid these situations, today we are going to analyze how to cancel a car policy . For this, we will not go into the motivations that can lead us to change Insurance , although we will analyze the reasons why it is necessary to cancel the Insurance in an appropriate way. In this sense, it is essential to understand how the renewal of Auto Insurance works and its validity.

The renewal of Auto Insurance

When insuring a vehicle, we sign a contract by which the insurer agrees to provide the coverages detailed in the policy for a period of time, which is usually one year, renewable.

The Insurance Contract Law 50/1980 determines that the policy must include the duration of the contract and that its renewal will occur automatically on the expiration date, in terms not exceeding one year.

Generally, the validity of the Auto Insurance is annual and is extended every year, without the need for the client or the insurer to notify of this renewal.

It is important to note that, if it is annual, when paying the premium, the Auto Insurance coverage is contracted for the whole year. Although most insurers offer the possibility of paying the premium in several installments, the Insurance’s payment facilities do not affect the duration of the contract : coverage is signed throughout the year, even if the premium is paid by quarters or semesters.

This question is relevant, since the expiration date of the Insurance is the one that appears in the policy. And not the next premium payment. That is why it is important not to confuse the expiration date of the Insurance with that of deferred payments.

It is the expiration date that we must take into account when canceling the Insurance, when requesting the non-renewal of the policy.

Cancel Auto Insurance, step by step

If a client wishes to cancel Auto Insurance, the easiest way to do so is by requesting non-renewal of the policy. However, you do not have to wait for the end of contract date to do it, but you must notify it before. Specifically, one month before the expiration date.

When should you notify the non-renewal of Auto Insurance?

Until 2016, the Law required the policyholder of a Car to notify him of his decision not to renew the policy two months before expiration. This term is the same as that required by the insurer to report any change in the policy.

However, it was excessive for users to have to notify the cancellation as soon as possible. Finally, the rule changed and as of January 1, 2016, it is no longer necessary to communicate the non-renewal of the Insurance so far in advance.

With the regulatory change, the term to notify our insurer that we do not want to continue with them was reduced to one month, so that the policy can be canceled.

Thus, in order to cancel Auto Insurance, it is necessary to notify the company at least 30 days before the expiration date of the policy. Thus, you can change the Insurance of your Car without further problems.

By the way, the insurer can also refuse to extend this contract, although in his case he has to notify his client with two months of margin.

In this way, article 22 of the Insurance Contract Law, which is the one that regulates the terms of these communications, establishes that “the parties may oppose the extension of the contract by means of a written notification to the other party, made within a period of at least one month in advance of the end of the current insurance period when the person who opposes the extension is the policyholder, and two months when he is the insurer ”.

Once the non-renewal of the policy has been communicated within the period established by the Law, the other party may not object.


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Auto Insurance

5 tips to get the best Auto Insurance




When choosing the best Auto Insurance, different factors must be taken into account to get adequate protection and not end up spending more money on the account. The insurance offer is very large and, frequently, we find promotions that, sometimes, lower the price of the policy at the cost of lowering the insurance coverage . But is that what really interests you?

The truth is that a good Auto Insurance does not have to be expensive and must include the guarantees that the user needs to drive with ease, knowing that the insurer can really help you in the event of any problem.

Finding the best Auto Insurance is not an easy task, so we are going to give you some tips that will help you make the best decision when it comes to insuring your vehicle and saving!

To choose well, it is necessary to compare. So what you have to do before making a decision and hiring a car policy is to make a good comparison between Auto Insurance from different insurers.

To do this, you can turn to our Car Insurance comparator , where you only have to leave the vehicle data and an advisor will carry out that comparison for you and offer you an adjusted and tailored budget.

If you are looking for the best Car Insurance, this is the option we recommend.

But if you prefer to do it by yourself, perhaps the best advice we can give you is not to be impressed by the great offers and promotions.

The price is not the only factor that must be taken into account when comparing Insurance , it is also necessary to pay close attention to the guarantees offered and the price-quality ratio of the coverage offered.

The decision to hire a better Car Insurance, many times comes from not being in accordance with the current policy. Whether for the price or for the service you have received from the insurer, it is common to change Insurance in search of better conditions.

If that is your case, do not forget to cancel your policy early enough to save yourself trouble. You should know that to cancel your policy you have to communicate it at least one month before the date its validity ends. This will prevent it from automatically renewing.

This advice seems obvious, but many people ignore it: You have to ensure the car with a policy that suits its characteristics. Not all policies are the most recommended for all cars.

In this way, if we want to insure a high-end car or look for a new vehicle policy, the most advisable thing is to opt for Full Risk Insurance.

Why, if it is much more expensive? Well, because the repairs that may arise will be quite expensive if you make them on your own and because if there is a total loss of the vehicle due to an accident, the insurer is likely to offer you compensation valuing your car with a new value.

This of the valuation is important. If you want to know more, in our blog we give you more information about how insurers value your car after an accident.

For this reason, if you have an older car and are unlucky enough to have a serious accident, it is most likely not worth repairing. The passage through the workshop would be more expensive than the vehicle itself and the insurer can declare it total loss . In those cases, a more basic Insurance may be sufficient.

Depending on the characteristics of the car, one policy or another will be convenient. In general, an Extended Third Party Insurance with the coverages that the client needs is the most contracted option. In this post we tell you what the Extended Third Party Insurance offers .

Sometimes, whether or not you get the best Auto Insurance at a cheap price depends more on the driver. Prudence while driving is something that insurance companies reward and that can lead to an interesting reduction in the price of Insurance.

In this way, the absence of claims is a reason for a bonus in the premium, which means that the fewer incidents, the greater the bonus in successive premiums. Here we tell you how bonuses work in Car Insurance

If we want to change the insurer keeping our bonuses for being good drivers, it is important to make sure that the company that is going to insure the vehicle takes this bonus into account.

In addition to claims, there are other personal factors that can be decisive when contracting an Auto policy. For example, age can also influence the price, and even the insurer’s decision to accept car insurance .

In fact, being less than 25 years old or having passed the age of 65 makes the price of the Insurance more expensive or, even, can make the insurer refuse to insure us. It is something you should keep in mind to avoid encountering unpleasant surprises.

A key element in choosing the best Auto Insurance is its coverage. Insurers offer the possibility to personalize the policy and include and discard guarantees that may increase the price of the Insurance.

Think about your vehicle and how you use it to include only those coverages and services that you really need.

However, it is advisable to include some coverages that, beyond the Mandatory Insurance, all car policies should have:

  •  Compulsory Civil Liability
  •  Voluntary Civil Responsibility
  •  Travel assistance
  •  Driver’s insurance
  •  Legal Defense

These are the most necessary coverages, but not the only ones. In our blog you will find a lot of information about the guarantees with which you can insure a car, although in this post we tell you what are the coverages that are most included in the Car Insurance policies .

For many vehicles, the best Auto Insurance is an All Risk , the type of policy that offers greater protection. Insuring a fully comprehensive car is more expensive, but offers more guarantees and services to policyholders.

In this sense, if we want is to enjoy the coverage of an All Risk at a cheaper price, we have the option of hiring a franchise , which will allow us, in case of repair, to have the service covered with the payment of a fixed amount .

You know how it works? In this post about the franchise in All Risk Insurance we tell you everything you need to know about this type of contract.

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