What happens if you drive without insurance?
As we know there is an obligation to contract a Civil Liability Insurance stipulated by the legislation. The driver, who drives without insurance will be fined and in some cases the car may be immobilized.
The fines range from 600 euros to 3000 euros. If you suffer an accident the responsibility will fall on the uninsured driver, beyond the fault of the accident outside the other driver. The uninsured driver must pay the expenses for the repairs of the other vehicle. Mostly the uninsured can not take care of the economic expenses inherent to the repair. In these circumstances, the Insurance Compensation Consortium will take charge of the payment.
How is car insurance?
Car insurance is an agreement that is established between an insurance company and the insured (policyholder or policyholder), which is embodied in an insurance contract. The insured receives a premium for compulsory liability coverage for bodily injury and property damage.
How is the price of the premium determined?
The premium is the price of insurance. The premium rate is established by evaluating several factors. The age, sex, civil status of the insured person, where the vehicle is stored, the driver's history, the make and model of the car, the previous insurance coverage and the kilometers that he / she performs each year. Generally, drivers with a bad driver's history are statistically more likely to intervene in an accident, therefore drivers who will be charged a more onerous fee. When its value has been determined, the taxes must be added, in order to have the price paid by the insured. The insured can choose the form of payment, quarterly, annual, etc. If the insurance company increases the premium has to notify the insured at least two months before the expiration of the annual policy, so that in case the insured does not agree has time to rescind the contract before the next renewal.
How can I reduce the premium?
Insurance companies use to attract certain types of customers special offers or discounts. For example: for drivers with an impeccable driving record or who have not committed any accidents or who insure more than one car with the same insurer. This way you can get the insurance company to make a discount of x per% based on a particular characteristic.
As premiums vary and are updated based on statistics of accident data, injury compensation costs, health care costs, repair labor costs, parts to be repaid, and anything that may influence the risk (age, seniority Driver's license, geographical area, etc.) It may happen that two people with the same car pay different premiums.
Insurers establish the accident rate by grouping groups with the same characteristics, such as:
Age and sex. Statistically the younger ones are more reckless and have a higher accident rate and women with a certain age commit fewer accidents than men.
Antiquity as driver: Driving experience for several years reduces the risk of accidents.
Territorial scope: different areas statistically reveal greater number of accidents, established by the number of vehicles per province, traffic, climate (ice, fog, etc.) types of roads, population density, etc.
What a car? The greater the greater damage, that is the relationship that is taken into account. The repair costs will be higher.
What is the car used for? Those who use their cars as a work tool or are an indispensable transport for their work, have a lot of use and are more exposed
The insurers apply a system of bonuses and penalties (bonus malus) consists of discounts and surcharges on the basic premium in function of the claims declared in the last twelve months by the insured. If there were no claims, the discounts apply and if claims are declared, surcharges may even apply. These apply to compulsory or voluntary liability insurance, own damage, theft, fire and breakage of moons, other coverages are excluded.
Who are involved in the contract?
The car insurance contract involves:
- The insurance company that is offered by the policy, will receive the value of the agreed premium and is responsible for the obligation to pay the compensation in case of loss.
- The policy holder (policyholder), the policy holder may be different from the insured, because he is only responsible for paying the premiums for the insurance.
- The person listed as insured, and is nothing less than the owner or owner of the property or car that is insured.
- The beneficiary, is the person who has been chosen to receive payment of compensation in case of loss.
- Generally the policy holder (Borrower), the insured and the beneficiary are the same. But it can happen that the husband is the policyholder, his wife the insured and the beneficiary a third.
- When the driver is named, it is the person who drives the vehicle perfectly identified in the policy, it is legally responsible for the risk that may be caused by the driving of the vehicle, for damages caused to third persons or property of others as a consequence of the circulation.
