At the time of contracting a vehicle policy, we do it thinking of protecting our assets, in the event of an accident with the vehicle that we have acquired with effort. We know the cost of our unit, we know what the maximum loss would be if it were to be damaged, and we even worry that, in the event of an accident, the coverage is sufficient to repair or replace our unit.
However, we seldom stop to think about what the consequences would be when causing damage to other people’s property, other vehicles, or, in the worst case, causing severe injuries to other people.
The coverage of the vehicle policy that protects us against the consequences described is called Third Party Liability. This coverage is intended to protect the insured against third-party claims, which are all those that are not directly related to the insured, and for which the obligation to compensate damages is generated.
For example, we do not know if in the development of our activities, or on the way from our house to work, we may have a collision with a $ 5,000 car or with a luxury car that could easily exceed $ 40,000 or, at worst of the cases, injuring people of any age who, as a consequence of the accident, generate serious injuries, regardless of the speed at which we are driving, directly related to the circumstances of the accident.
In this sense, it is important to have complete information, ranging from the casuistry of traffic accidents to the information on the compensation that has been determined, whether by judicial means or not. We can indicate that the Civil Liability coverage is of great importance since the probabilities that we will be involved in a complex event are high and therefore, having the highest sum insured will allow us to cover most of the expenses derived from a claim with damages to third parties.
We cannot stop commenting on personal accident coverage, which is activated more than what is covered by the Mandatory Traffic Accident Insurance (SOAT) and which also guarantees to care for healing expenses, death compensation, among others. Statistics show that there is a percentage of cases that cannot be fully covered by the SOAT insured amounts, and for this, we must pay attention to the insured amounts taken in our car insurance.
In this context, it is not enough to cover people outside the vehicle and to attend to the injured who are inside the vehicle. It is also a risk that a third party, unrelated to the insured and not related to the insured, is inside the vehicle and claims for any situation in which he considers that the insured and/or driver is responsible for the injuries and losses caused.
For these claims, there is also the Occupant Civil Liability coverage, which must have an insured sum that can cover this situation and satisfy the requirement of the vehicle occupants who could file a claim.
A deep knowledge, both of the product and the vehicle insurance, will allow identifying the coverages, insured amounts, and special conditions that allow covering the risks to which both the vehicle and its assets are exposed.
What if I don’t have auto insurance?
Law 63-17 establishes that if you do not have a motor vehicle insurance policy, the driver is responsible for “paying the compensation demanded”.
Also, it is punished by law not to have auto insurance. “Owners or drivers who drive on public roads without a valid motor vehicle insurance policy will be penalized with a fine equivalent to one (1) to five (5) minimum wages than that prevailing in the centralized public sector.”
Agents from the General Directorate of Traffic and Land Transportation Safety may also retain the driver’s car if it does not carry an insurance policy.
Advantage of car insurance
By protecting themselves with auto insurance, the person will have the backing of a trustworthy company that will be in charge of sending the vehicle to the best workshops to repair it, even to the same brand distributors. An insurance company handles a high volume of cars to be repaired, so they have greater bargaining power compared to the workshop in terms of deadlines. By being insured, you have benefits such as 24-hour road assistance, tire change, fuel supply, crane in case of accidents, mechanical repair, among others.
There are different types of insurance, but the most chosen by those interested are liability risk insurance, which is the basis of all automobile insurance policies. This alternative pays any type of expenses related to bodily injury or property damage; both for you and for the car (if you are the victim of an accident) and also those of the other person involved (if you are the cause of the accident).
The other is the collision insurance, which is a type of coverage that means exactly that: pay for the damage caused to your car in a collision.
Typically, this is the most expensive part of the auto insurance account. Collision coverage will cancel the car repair up to the current cash value of the vehicle.
For you to have the best insurance alternative, you can make different quotes in different companies so that you can make a comparison of the coverage benefits that you will receive when contracting the service. Each insurance company has specialized agents who will provide you with the advice you need and will solve all the questions you have.
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