Question from Claude: “I want to insure my car. I am offered third -party or all risk insurance. What is the difference between the two?”
There is no shortage of differences between these two insurance formulas. First of all “third party” insurance is compulsory while “all risks” insurance is optional. Then, the third -party insurance only covers you in the event of a collision with a vehicle whose driver is known, with a pedestrian or even with an animal whose owner is identified. Consequently, all accidents caused by strangers are not affected. So, if you find your car vandalized in a parking lot without knowing the fault, you will not be compensated. The same goes, if you are responsible for the damage suffered.
More complete all -risk insurance
Conversely, the “all risks” formula offers more extensive guarantees. Whatever your share of responsibility, it provides you against shocks with a fixed or mobile body, outside the vehicle (car, sidewalk, animal …). And even if the latter is parked. It also includes reversal, the fall of the vehicle, the degradations related to floods, storms, earthquakes … Certain contracts may even compensate you against damage suffered following the towing of the vehicle, but in the majority of cases, the responsible driver will have to pay a deductible. Only limits of “all risks” insurance: theft, fire or glass breakage is only taken care of if you have taken out the optional options associated with the contract.
Finally, there is a notorious price difference, and logical, given the guarantees offered. “All risks” insurance being more complete, it is more expensive than third party insurance. This is not the only explanation. The prices vary according to the profile of the insured. Thanks to statistics, insurers determine degrees of risk. Thus, the proposed rate will depend on the personal elements that you communicate when subscribing to insurance (type of car, use, socio -professional category, place of residence, etc.). In total, for the same warranty, the prices vary from one company to another. So do not hesitate to play the competition to obtain the best price with equal guarantees.
Learn more :: Compare car insurance prices