All-risk car insurance is quite popular in Spain. It is estimated that around 30% of the 24.5 million insured vehicles in our country, according to the Spanish Union of Insurance and Reinsurance Entities, have this type of policy for their insurance.
We had already told you when you are interested in comprehensive insurance. Normally drivers choose these insurances when they have to insure a new car, since a car depreciates and the compensation from insurers tends to decrease the older a car is. You have to know the market value of the car for when to switch to third-party insurance.
There is another value of all-risk insurance, which is the tranquility. These car insurances cover own damage in case of an accident…. But not in all cases. There are different circumstances that not even comprehensive insurance covers you.
- Damages in bad faith: An all-risk insurance does not cover damage voluntarily caused by the insured, for which the work of experts (and sometimes detectives hired by the company) is essential.
- late payments: It is also not a good idea to be late in paying the premium, as there is a risk that the insurance company will not want to cover claims.
- Clashes with relatives or neighbors. Be careful, because the companies are suspicious. The most common thing is that they do not want to fix the damage to a vehicle when there has been a collision between family members, because, by default, they consider that there is an intention to fraud. Neither of the two companies (the one of the guilty relative and the one of the one who is not) will want to take charge of anything. Some even object (and private inspectors) when an incident occurs between neighbors or co-workers.
- young drivers. Youth insurance policies are more expensive. And be careful with leaving the vehicle to a person under 25 years of age. And it is that almost no insurer covers their own damage (or third parties) if the person who was driving during the accident is not that old and does not appear on the policy as a driver.
- Not having the ITV in force. From the fourth year of a car’s life it is mandatory to pass the Technical Vehicle Inspection (first every two years, then every year). It’s not only that they can fine you… but in the event of an accident, your insurance company will never cover the damage.
- Participate in races: For motor competitions (in rallies or circuit) you must have a specific policy. If you suffer an accident and you do not have it, you bear the costs.
- modified cars: Something that people do not know is that insurance companies only cover what the car has as standard. If you’ve changed something and haven’t informed the insurance company, they may refuse to cover the damage. There are special insurances for modified vehicles.
- stolen vehicle. They steal your car. Bad news. The thief has a sinister with him. worst news. But don’t worry, as long as you have reported the car theft. It will be the insurance consortium who bears the costs of the damages that you cause. And then they will go against the culprit to claim damages.
- Driving under the influence of alcohol. No company will deal with their own damage to the car of a drunk driver who has caused an accident. Nor if he has taken drugs.
- Driving without a driver’s license. Whether you do not have a driver’s license or have it withdrawn and have a car accident, the insurance company does not cover the damages.
- too many occupants. All vehicles pass an approval for a specific number of passengers (usually five, including the driver). If you carry more passengers than allowed, even fully comprehensive insurance will not cover the damage.
- Docks and ports. These are areas where you should pay special attention… since many insurers do not cover damage in these places by the sea. When you take the car on a boat, it is the shipping company’s insurance that covers damage to the car if it occurs, by the way.
- off road. SUVs and, above all, true SUVs, have many capabilities to drive on dirt tracks. But beware, many companies do not cover assistance in those areas or expenses caused by an accident. Find out if this is your case and, to go more calm, hire a special policy.
- Omission of relief. Failure to care for the injured in an accident is a crime. Beyond that, on many occasions insurers use this argument to not pay for damages caused to their own car (yes, damages to third parties) if the scene of the accident is abandoned.
- national catastrophe. There are certain damages (flood, earthquake, storm, volcanic eruption, hurricanes, terrorism, demonstrations…) that your policy does not cover. You have to deal with the Insurance Compensation Consortium.
