Have you just bought a new car? In this case, which car insurance formula to choose? Third party car insurance is the lowest formula for auto protection. Cheaper, but it only covers damage caused to others in the event of a liability claim. Compared to all-risk car insurance, the most comprehensive on the market, why choose the third-party formula? Answers to help you make your choice.
Car insurance: when are you insured by a third party?
When you choose to insure your car with a third party, you choose the least comprehensive insurance formula. Therefore, the cost of contributions is lower, but so is the level of protection.
Third party insurance is defined as the mandatory legal minimum and provides third party liability cover. Obviously, it provides compensation for bodily injury and property damage caused to third parties by your car. Unlike all-risk insurance, which is the most comprehensive formula, third-party coverage does not cover damage caused to your vehicle in the event of a liability or non-liability claim. If you suffer material damage without an identified third party, you will not receive any financial support.
What does third party insurance not cover?
If you choose to take out third-party car insurance, the following guarantees are excluded and do not give rise to compensation:
- Broken glass covering headlight glass, windows, windshields, skylights
- The driver’s guarantee covers bodily injury to the insured
- Vandalism
- Theft with and without burglary
- Fire
- Natural disasters
- parking accident
- Replacement vehicle in case of breakdown
To benefit from these guarantees, you must take out an all-risk car insurance policy or an intermediary car insurance company that issues some of them.
Good to know: Depending on the insurer, legal protection is included in third party car insurance.
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Third party insurance: who cares?
A third party car insurance contract is cheaper but also less protective. So in which case is it recommended to choose this formula?
- For cars with a low value: The compensation amount is determined according to the actual value of the vehicle at the time of the damage. A car with a low argus rating will result in minimal financial compensation.
- For small riders: The risk of an accident is generally proportional to the number of kilometers covered. If you drive less than 10,000 km per year, it makes sense to choose third-party insurance.
Some young drivers choose to take out third-party car insurance. The reason comes from the fact that insurance companies apply additional premiums for these profiles that are considered to be at risk, which increases the price of contributions. However, some companies offer specific formulas for young drivers.
How much does third party insurance cost?
Third party insurance is by definition the cheapest guarantee as it gives you the least protection. However, the price of the contributions depends on each individual insurer. To find the best price, it is interesting to make online comparisons and make free quotes.
In short, you can supplement your third-party contract with options that increase your level of protection: glass breakage, 0 km breakdown assistance, replacement vehicle, driver warranty, etc.). All insurance companies offer intermediate car insurance (third party +). This formula represents a good alternative and makes it possible to optimize car coverage while controlling prices.
Please note: the price of your car insurance is adapted to your driver profile. The insurance companies take into account your bonus-malus coefficient, the number of license years and the number of responsible claims in recent years. In these cases, an additional premium will be applied.
