In a market where, according to the Insurance and Pension Funds Supervision Authority (ASF), the secure car park reaches almost 7 million insured cars.
What is car insurance?
Motor insurance is a contract between two entities - the policyholder and the insurer - which sets out the conditions under which the transfer of liability from the policyholder to the insurer arising from the use of a motor vehicle occurs.
Motor insurance is compulsory with respect to third party liability, whether or not they are transported and for personal injury or property damage caused by the insured vehicle.
The obligation to contract insurance falls on:
- Owner - who owns the vehicle;
- Usufructuary - who uses it but has not acquired it;
- Purchaser with reservation of ownership - who uses, bought, but does not have it in his or her name;
- Lessee - uses under finance lease;
- Garagista - who performs a function / activity related to the automotive sector.
Why did car insurance come about?
Insurance was born as a socioeconomic factor, the need to manage risk and protect against financial losses and other uncertainties. The potential costs involved in an accident are too significant - ranging from vehicle repair costs to death or disability compensation resulting from the accident.
Having auto insurance is the best way to cover these financial risks by complying with a legal and moral requirement of citizenship.
In addition, the car insurance is required by law for all land vehicles with engine (and respective trailers) for which a driving title is required. If you are driving on the road without effective and valid motor insurance, your vehicle may be seized and you may incur a serious offense and a fine ranging from € 500 to € 2,500.
Then, if you do not pay the auto insurance by the scheduled date, you are prevented from being able to drive with the respective vehicle, because the insurance automatically lapses, leaving the contract to take effect. In these circumstances, if you have an accident, even without fault, insurers are completely free of liability to pay compensation.
Thus, each vehicle with the aforementioned characteristics even has to have associated insurance, and the insurance may be in the name of the owner or driver.
Main Types of Car Insurance
First, you should consider selecting extended coverage or the minimum required by law:
ompulsory motor liability insurance (third party insurance)
This insurance is the minimum requirement for motor insurance , and in the event of an accident, insurance is provided for compensation for material and bodily harm caused to third parties and to the persons transported, excluding the driver responsible for the accident. What third party insurance does not cover:
- Injuries to the driver responsible for the accident;
- Compensation for damage to the vehicle blamed for the accident;
- Compensation for all damage resulting from accidents which have been deliberately caused or negligently disregarded by road safety standards;
- In case of loading and unloading, damage to third parties;
- Personal injury to family members, of the responsible driver, up to third degree or in charge of him;
- Claims at sporting events.
Insurance own damage
Firstly, there is no insurance against all risks. Although this denomination has become common, what is certain is that only what is included in the contracted coverage is guaranteed. Whether they are mandatory or optional.
Regarding the various optional coverage, we have as an example the optional capital in civil liability above the mandatory minimum, travel assistance, car occupants (driver or all occupants), temporary deprivation of use, protection against malicious acts, theft or theft, legal protection, damage coverage, luggage, isolated glass breakage, shock, collision, rollover, lightning, explosion, fire, natural disaster, replacement vehicle in case of accident or damage, among others.
How to choose the best auto insurance: factors to consider
Several factors influence the premium (price) to be paid for motor insurance: age, date of driving license, marital status, county of traffic, date of driving license, number of claims in recent years, type of use of your vehicle. vehicle, occupation, type of vehicle, date of manufacture, extras included, parking place, previous years with insurance (with other company or current), kilometers traveled annually, anti-theft device and other safety equipment, defensive driving course, number of people driving the vehicle, among others…
Each insurer may or may not consider these variables as well as weight them differently when calculating the premium and its benefits, as each insurer is free to have its specific rate card for both types of insurance.
Another factor to bear in mind is that there are a large number of insurers proliferating the national market. These two aspects cause certain insurances at different insurers to be significantly unequally priced even though they have the same coverage and are for the same vehicle and driver.
Choosing car insurance carefully, as well as finding the most competitive one, is a complex challenge. Below are some helpful tips on saving on auto insurance:
Think carefully about what you really need, avoiding unnecessary coverage. Especially in the case of personal injury insurance, you should be perfectly aware of what you are buying. Many of the coverages on many auto insurance products are not necessary for most consumers, but contribute to the ultimate premium. The best auto insurance for someone else may not be right for you;
If you are simply looking for liability insurance, focus mostly on price, because different insurers offer this standardized product to meet regulatory requirements, including some warranties such as travel assistance, people transported and glass breakage, in the packs. more economical;
In certain situations, if you own more than one vehicle, you can cover them all at the same insurer or combine auto insurance with, for example, health insurance at the same insurance agency to get a premium reduction;
Research the credentials of insurers you are considering trusting auto insurance with;
If possible, pay the premium all at once, the fractions have burdens that make insurance more expensive.
As compulsory by law, car insurance is part of the list of expenses of most Portuguese families, so a careful comparison is essential. We want to simplify the world of auto insurance so that you don't pay too much or hold too little. An asset as important as a vehicle deserves the best protection at the best price. Compare now!