In France, any owner of a vehicle in circulation must have at least civil liability insurance (required by Article L211-4 of the Insurance Code).
Beyond the legal provisions, several coverage options are available to you.
Third-party insurance is the entry-level guarantee level. Mainly including civil liability coverage, this type of contract offers basic risk coverage in the event of an accident.
What exactly does third-party auto insurance cover?
Under what circumstances can this level of guarantee be advantageous?
When to subscribe? We bring you answers.
1. Definition of third-party auto insurance
Third-party insurance provides the legal minimum coverage
Third-party car insurance offers the minimum legal level of cover imposed by the Insurance Code, even if the vehicle is not in circulation or is parked. It includes, at a minimum, the driver’s civil liability guarantee .
This guarantee makes it possible to repair damage caused to others by their vehicle during an event (road accident, fire, etc.), whether it involves bodily injury or material damage.
What is the difference between third-party insurance and comprehensive insurance?
Unlike more comprehensive car insurance contracts, third-party insurance does not take into account the damage you suffer.
if you are responsible for the accident. It also does not reimburse costs related to damage caused by natural disasters, fires and theft , unless these specific guarantees have been added to your insurance contract.
Third-party insurance is the least expensive solution, but also the least comprehensive .
However, it may be of interest in certain specific cases.
2. When to take out third-party insurance
An advantageous solution for low-value vehicles
Owners of vehicles that have been in circulation for more than ten years and of low value may consider taking out a third-party insurance contract .
Indeed, the value of a vehicle drops drastically over time.
In this case, it is often unnecessary to opt for all-risk insurance.
In the event of an accident, it is likely that the amount of the compensation for the vehicle will not be advantageous compared to the amount of the premiums or contributions of your contract.
And with the savings made, you can add guarantees or options to your contract.
To reduce the expense when the insurance premium is too high.
Thus, young drivers or malussé motorists, who have to pay an annual insurance premium higher than the average, often tend to take out third-party insurance to reduce the expense.
The question to ask when making this choice concerns both the value of the vehicle in relation to the amount of the premium or contribution, and the ability to re-equip in the event of destruction of this vehicle.
Read our article: when to switch your auto insurance to a third party?
3. How to take out third party insurance for your car
When purchasing your vehicle , all you have to do is contact the insurer of your choice to be able to insure your vehicle.
You will then be asked for several documents:
- The registration certificate
- The driving license corresponding to the category of the vehicle
- The information statement, if this is not your first insurance contract
Conclusion
Hope you now have better understanding on what third party Insurance is and how to go about it.
Leave a Reply