Imagine you’ve just had your shiny new car and suddenly you have an accident that wrecks it. Would you be prepared to pay for it? With a all‐risk insurance with an excess you can have the peace of mind that your vehicle will be protected against these unforeseen events, while you control the cost of your policy by assuming only a portion of the claim.
But taking out this type of insurance is not so easy. To understand exactly how it works, from Ambler we have created a guide that will help you understand all the key points of all‐risk insurance with an excess.. Let’s find out!
What is all-risk insurance?
all-risk insurance is an auto insurance policy that offers the most comprehensive coverage available on the market. The differential factor compared to other more basic types of insurance, such as third party or extended third party insurance, this insurance covers damages caused to third parties as well as those suffered by the insured person’s own vehicle, even if the person responsible for the accident is the driver himself.
In this way, comprehensive protection is guaranteed for the insured vehicle. It includes both basic compulsory civil liability cover, which covers damage caused to third parties, and additional cover that protects the vehicle itself in the event of accidental damage, theft, fire and other unforeseen events.
Advantages of taking out all-risk insurance
Do you know all the cases in which comprehensive insurance can protect you? Let’s take a look below:
Complete coverage
The main advantage of all-risk insurance is that it offers comprehensive protection. both for own vehicles and for damage to third parties. This provides a total peace of mind as they are covered in the majority of possible accident cases.
Lower financial risk
In the event of an accident or claim, the insured will not have to bear the full cost of repairs to your vehicle. This is a great financial relief, especially in situations where the damage to the car can be significant.
Protection against all eventualities
What would happen if your car was vandalised?The repair costs would be covered by comprehensive insurance, as in cases of theft or fire.. In this way, the vehicle will be safeguarded against virtually any unforeseen eventuality that may arise.
Ideal for new or high value cars
You don’t need to fear damage to your new car. With all-risk insurance, reduces financial losses in the event of an accident or serious loss, which makes the investment in insurance particularly valuable.
What is an insurance excess?
It is time to address the topic of the excess, which is a sum of money that, in the event of a claim, the insured undertakes to pay. out of pocket before the insurer covers the rest of the costs. It is a concept used in several types of insurance and has the following characteristics objective of risk sharing between the insured and the insurer. The excess may vary depending on the policy and is usually agreed in advance when the insurance policy is taken out.
The way the deductible works is simple: when a claim occurs that requires repair or compensation, the insured pays the amount corresponding to the deductible, and the insurer covers the remaining amount. For example, if the excess is 300 Euros and the repair of the vehicle costs 1.000 Euros, the insured person will pay the first 300 Euros, and the insurer will cover the remaining 700 Euros.
The deductible applies only to certain claims.depending on the coverage included in the policy. Generally, it concerns own damage, theft or fire, but it It does not usually apply to civil liability (damage to third parties), as this is mandatory and cannot be subject to an excess.
How does comprehensive insurance with excess work?
Comprehensive insurance with excess is a type of insurance that combines all the coverage of comprehensive insurance with the concept of excess. In this type of insurance, the insured person is protected in front of the majority for any damage your vehicle may suffer or cause to third parties, but assumes a part of the cost of the claims through the excess. This combination allows the insured to enjoy a complete cover at a lower premium cost than a comprehensive insurance policy without excess.
What does comprehensive insurance cover and how does the excess affect the cost of a claim?
Comprehensive insurance with excess covers:
- Own damage: covers the damage sustained by the insured vehicle, regardless of who was responsible for the accident.
- Theft: protects the policyholder in the event of the vehicle or its parts being stolen.
- Fire: includes damage caused to the car by fire, whether accidental or due to a short circuit.
- Weather-related events: covers damage caused by climatic events such as hail or flooding.
- Vandalism: covers intentional damage caused to the vehicle by third parties.
- Civil liability: covers damage caused to third parties, both material and personal.
Examples
To better understand how the cost varies depending on the excess, let’s look at some practical examples:
€200 excess
If the policyholder has an accident and the cost of the damage amounts to €1,000, they must pay the first €200, and the insurer will cover the remaining €800. If the damage were only €150, the policyholder would bear the full cost, as it does not reach the excess.
€600 excess
In this case, if the damage amounts to €1,000, the policyholder must pay €600, and the insurer will cover the remaining €400. However, if the damage were only €500, the policyholder would have to pay the full amount, as the cost is lower than the excess.
Without excess
In a comprehensive insurance policy without excess, the policyholder does not have to pay anything in the event of a claim. If the damage amounts to €1,000, the insurer will cover the full cost.
It should be noted that the main advantage of opting for an excess is that it reduces the cost of the insurance premium, as the policyholder assumes part of the risk. However, a higher excess may mean a greater outlay in the event of an accident. That is why it is important to find a balance between the amount of the excess and the saving on the premium, so that it suits the policyholder’s needs and budget.
Security and savings
In response to the title of our article, we can say yes: taking out comprehensive insurance with excess is an excellent option if you are looking for full cover for your vehicle while reducing the cost of the premium. But it is very important to carefully analyse the amount of the premium and how it will impact in the event of a claim.
To this end, at Ambler we have a team of professionals who assess your situation to offer you a tailored policy. We advise you so that you get the best protection without compromising your peace of mind and security. Contact Us so that we can begin to assess your situation.
