Car insurance. When do you switch from all risks to a third party?

Do you think your car insurance premiums are too high given the age of your car? Moving from all risky formulas to third parties is not pointless in certain circumstances. Argus Your details.

Different types of insurance

In France, there are two formulas for insuring your car:

  • Only civil liability, also known as “third party” insurance,
  • All-risk insurance for multi-risk insurance.

Third party insurance is the minimum coverage required by law. It guarantees against personal injury and property damage caused by others. However, it does not cover damage incurred by the insured himself or his vehicle. In many cases, additional warranty is added, such as warranty against theft, fire, and broken glass. Next, let’s talk about “third party +”.

Car insurance
The all-risk formula is more complete, but also more expensive.

The all-risk formula is the most complete, but also the most expensive. It guarantees all damage suffered by the vehicle, in addition to third parties, regardless of the type of accident (responsibility), whether or not the person responsible has been identified. It also protects against the risk of natural disasters and terrorist attacks. According to the French Insurance Federation (FFA), the average cost in 2020 was 508 euros / year. It costs more than twice as much as third-party insurance (€ 245 / year) and accounts for nearly two-thirds of the insurance policies that French drivers take out.

In some situations, it may justify abandoning this extended coverage and considering moving to a third party. This is more economical.

To read. Car insurance. The end of the green card soon?

Significantly depreciated vehicle

If it seems obvious that you choose to insure a new or modern vehicle in an all-risk manner, the problem of migrating to a third party arises as the vehicle gets older and has longer mileage. The lower the value of a vehicle, the less insurance you need. Deciding when to switch to a third party is not easy. However, if your annual premium exceeds the 10% standard for your vehicle’s rating, you may begin to reflect on your question.

Crashed car

The most cautious people don’t take the plunge, but the modest ones are on the side of reducing insurance by a third. Choosing an additional mechanical failure warranty is always useful and reassuring, as the car will be older and therefore more likely to be exposed to mechanical failures. A solution that allows you to benefit from assistance in the event of a breakdown even in front of your home if the option you select does not provide a mileage deduction (support for “breakdown 0 km”). However, please be careful not to subscribe to this warranty more than once. In most cases, manufacturers provide this assistance to their customers when the vehicle is being maintained in the network.

Reduce vehicle use and move to rural areas

The insured may use less car. The purchase, movement, carpooling, unemployment, and confinement for health reasons of another major vehicle are all events that can lead to reduced vehicle use and adjustment of vehicle insurance, even temporarily. .. Reducing driving also means reducing the risk of accidents for the insured.

Rolling car
If you move out of a major city, your choice of third-party insurance may be justified.

In this case, you can consider switching to a third party or choosing “per kilometer” insurance to insure the vehicle according to the actual mileage traveled.There really isn’t an objective mileage threshold, Relocation to rural areas is an additional factor that may encourage relocation to third parties. Accidents are less likely to occur in some areas than in others, and generally speaking, the less traffic there is, the lower the risk of an accident. Therefore, while case-by-case is appropriate here, it is clear that strength and location are parameters that should be considered in order to adapt its coverage as much as possible.

Responsible post-billing economic choice

The occurrence of negligence claims directly affects the amount of insurance premiums. Bonuses / Mars that benefit the insured may be affected the following year, making it difficult to bear the financial burden of contributions. Switching your insurance to a third party may be the only solution that allows you to continue to insure your car and thereby comply with the law.

Car insurance assessor
In France it is mandatory to insure your car.

because It is a legal obligation to insure your car Non-compliance subject to criminal sanctions. Not insuring your car is a crime punishable by a fixed fine of € 500 (€ 400 if the fine is paid within 15 days) in case of the first violation. In the event of a new verbalization, the offender will in particular be at risk of fines of up to € 3750, suspension of the driver’s license for up to 3 years and even confiscation of the vehicle. Not to mention the risk of having to pay large amounts of compensation over the years in the event of a responsible accident.

Therefore, adapting car insurance to your needs is a complex issue that involves a variety of factors, as everyone’s situation is diverse. Various insurance companies offer simulators on their websites to find out the exact cost of contract changes. An essential tool to use without moderation to make informed choices and choose the best cost-benefit compromise.

To read.Car insurance: Cancel the contract and participate in the competition