Coverage Converting Third-Party Liability Coverage

Why switch your auto insurance to a different policy?

When purchasing auto insurance, you can choose from three different coverage options. For new cars, the most comprehensive third-party, collision, and comprehensive coverage is the most logical choice. For older cars, third-party liability coverage is often chosen. Which coverage is the best choice depends on several factors.

By tailoring your auto insurance coverage as closely as possible to your personal situation and your car, you can save a lot of money. First, we’ll explain the standard coverages, and then we’ll give you some tips on how to choose the coverage that’s right for you and your car.

Third-Party Liability Insurance

This coverage is mandatory. If you cause damage with your car, this auto insurance can be used to compensate third parties for the damage caused. In the event of damage, the other party can file a claim directly with your insurer to be compensated for the damage. You cannot file a claim with the insurance to cover your own damage.

Limited Comprehensive Coverage

In the event of a liability claim, the auto insurer will only cover the damages for which you are liable. Your own damages will only be covered in certain cases specified in the policy. These include, among other things, coverage for:

Car Theft
Window Breakage
Hail damage
Fire Damage

Comprehensive Auto Insurance

Comprehensive auto insurance (all risks) is the most comprehensive and also the most expensive type of coverage. In addition to the coverage provided by the other two types, this insurance also covers damage to your own vehicle. The insurer also compensates for vandalism and damage caused by an unknown party. The insurer also pays for damage caused by another person. The insurer then recovers the costs from the person who caused the damage.

Switch Your Auto Insurance to Third-Party Liability Coverage

Which type of insurance is the best choice?

This may seem like a simple question, but the opposite is true. For new cars up to six years old, it’s wise to choose comprehensive auto insurance. This is because the premium is calculated based on the car’s replacement value. For older cars, this results in a disproportionately high premium. In the event of a claim, the payout is based on the current market value. Still, there are good reasons to insure a car older than six years with comprehensive coverage, especially if you’ve already built up several claim-free years.

What happens in the event of damage if the car isn't covered by comprehensive insurance?

In the event of an accident, the more limited coverage options do not cover your own damages. If the damages are recoverable, the party responsible for the damage must be held liable. You will then have to handle this yourself.