3 keys to understanding Total Loss and All Risk insurance

The protection that insurers offer to your car, are located at different levels. On the one hand it has the basic protection, which is that of Civil Liability, and that many acquire because it is one of the cheapest. This type of policy includes things similar to a DSOA, but with extra benefits such as roadside assistance, replacement driver, among others.

But if you want to go further, there are two key hedges:

Total Loss and All Risk.

1. Both cover the victims. The first thing you should know is that both policies include civil liability, that is, damages caused to those involved in an accident and their belongings.

2. With Total Loss, ensures the return of your car in case of theft or an accident. This is provided that the damages caused to the car exceed 70% of the commercial sum (percentage that is assigned by the insurer). However, it does not cover damage to the car when these are less than that percentage, that is, a loss or partial theft.

All Risk coverage is the maximum protection you can opt for.

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In the case of the last policy, it covers both civil liability, total loss and also the damages caused to the car in different circumstances (crashes, theft, damage by nature, etc.). The company must ensure that your car was actually stolen and if after 30 days it has not appeared, the total loss is assumed and they proceed to indemnify you. If after this period and that you have received the insured amount, the car appears, it now belongs to the insurer.

If you are thinking of renewing your vehicle insurance or purchasing one for the first time, evaluate well what coverage you need and remember that before getting carried away with the first option, it is better to compare the alternatives. You would be surprised to see everything you can save.

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