What types of auto insurance coverage are available?

Third-party auto insurance is the minimum coverage you are legally required to have. This insurance only covers damage you cause to others. Damage to your own car is not covered. This type of insurance is often chosen for cars that are 10 years old or older, but even then, more comprehensive coverage may sometimes be a wise choice.

Partial coverage provides broader protection than liability-only auto insurance. In addition to damage caused to others, it also covers a number of types of damage specified in the policy terms and conditions. The covered causes of damage are:

• Collisions with Stray Animals
• Hail Damage and Storm Damage
• Lightning Damage
• Fire and Explosion
• Window Breakage

Partial coverage is often chosen for cars that are 6 to 10 years old. Claims you file under this part of the policy do not affect your no-claims discount. This is also the case with comprehensive auto insurance.

This is the most comprehensive insurance plan and is often chosen for new cars up to about 6 years old. The most important addition in terms of coverage is that damage to your own vehicle caused by collisions is also covered by your own insurer. Vandalism damage is also covered under comprehensive auto insurance.

You are not allowed to drive a car without a driver’s license. If you do so anyway, you will not be covered. A driver’s license suspension also counts as “no driver’s license.” Damages to others will be covered, but the insurer can then recover the full amount from you. This could amount to thousands, or even hundreds of thousands, of euros.

You can rent out your car through various organizations. For example, you can use Mywheels and SnappCar. Keep in mind, however, that your insurance provider does not offer coverage when you rent out your car. In the event of damage, you may be held liable for the cost.

You can often purchase supplemental insurance through these platforms, but there are still risks associated with renting out your property. For example, you could end up on a blacklist, which would mean that insurers would no longer accept you after a claim.

Driving under the influence of alcohol or drugs is prohibited and therefore not covered by insurance. Both substances impair your driving ability and increase the risk of accidents. If you cause an accident while under the influence, the insurer will refuse to cover the damage to your car.

Your auto insurance premium is based on normal use of the car. If you participate in a speed contest or street race, the risk of damage is much greater. In that case, the insurer may deny your claim.

Damage that you intentionally cause with your car is not covered. The insurer may still compensate the victim, but will then seek reimbursement from you.

Some risks simply cannot be insured, such as damage caused by an earthquake or flood. Such damages are too great for insurers to cover. However, coverage is often available for damage caused by storms, hail, or lightning, provided you have third-party liability plus limited comprehensive coverage or third-party liability plus full comprehensive (all-risk) coverage.