In previous occasions we have talked in our blog about the purchase of a car in Andorra and the insurance offer that currently exists in the principality. Today I will explain in more detail about the different types of basic options that we can find:
- Third-party insurance: It is the simplest insurance of all and that must have, at least, any driver. It is the more economic modality but also the one that covers less damages. As its name implies covers third parties involved in a accident (not the driver of the vehicle itself). Depending on the insurer we can find small differences but in general terms some of the main coverage are: car damage, physical damage of the other driver, medical expenses or compensation in case of disability or death.
- Extended third party insurance: This is a third party insurance to which additional coverages are added that may differ depending on the company with which we contract. In general, the classic offer, in this type of insurance, includes: guarantee of glass breakage, car theft, and fire, but we can already find options such as: defense of fines, run over animals, home repairs or replacement vehicle.
- All-risks insurance: If we want full coverage, this is the best option. There are two modalities: with or without franchise. The franchise is an amount that is agreed with the insurer and assumed by the policyholder in case of loss. That is to say if we have an accident and the franchise is 300 euros, if the cost of the repair is 500 euros, the company would only take care of 200 euros. The franchise allows you to reduce the amount of the all-risds insurance.
Of these three modalities, what can be the most convenient? It will depend on several factors such as the age of the car, if it is luxurious, our experience as a driver, etc. The important thing is that the insurance and coverages are adapted to our needs. It is not the same insurance for someone who rarely has an accident that for the one who usually has small losses, without much importance, with assiduity.