Having AC insurance does not allow the vehicle owner to sleep well. Insurance companies often use a number of "tricks" to help them avoid liability in the event of a damage. It is worth carefully checking the entire text of the AC insurance contract, and above all the general terms and conditions of the contract - in particular the provisions referred to in the so-called the insurer's liability exclusions, because this is where the most important information for the policyholder can be found.
How to check how to avoid the amount of liability in the event of damage? How to minimize the risk of situations in which the insurer may not pay compensation?
1. Specify the scope of the AC insurance you expect
Before you decide to sign an AC insurance contract, think about what type of insurance you need. Each country has minimum insurance requirements, so the basic insurance is usually third party liability insurance, but AC is not obligatory, but it is worth having it. Insurance companies offer AC insurance for:
brand new cars, straight from the showroom,
expensive, famous brands cars,
frequently used vehicles,
cars parked in places far from home, unattended.
It is also worth considering the All Risk insurance, which offers a wide range of insurance protection. The name implies that this is an insurance against all possible situations, but it is important to find out carefully about the exclusions contained in the GTC (General Terms and Conditions of Insurance), which in some cases may release the insurer from liability.
A similar type of insurance is insurance against named risks, where the insurance conditions cover the repair of damages in the event of occurrence of situations specified in the contract.
2. Select the option of claim settlement
Insurance companies offering comprehensive insurance offer their clients two options for repairing the damage:
the cost estimate option, where after the damage has been inspected and assessed by the liquidator, a cost estimate for the repair of the vehicle is prepared. On this basis, after approval of the liquidator's appraisal, the insured receives funds that can be used to repair the damage.
the service option, whereby the insurer directly covers the costs of repairing the damage by settling accounts with the car service workshop that carried out the repair. It should be remembered that before starting the repair, the owner should consult the insurance company on how to repair the car and the amount of costs.
3. Replacing damaged parts with original ones or using substitutes?
In the event of liquidation of damage, it is very important to replace the defective parts. Whether it will be done with original parts or replacements largely depends on the insurance company.
While the insurer covers the costs of claim settlement, the policyholder usually expects the damaged parts to be replaced with the original ones, while the insurer, in order to minimize the costs, focuses on replacements. It is worth establishing this issue with the insurer before signing the contract.
Insurance companies, in most cases, the type of parts selected for repair depend on the year of the vehicle. In the case of the latest cars, original parts will certainly be taken into account, but the older the vehicle, the greater the risk of the insurer's calculation for popular replacements.
4. The own contribution to the coverage of damage
An important issue that is worth paying special attention to when signing the AC insurance contract is the determination of the percentage of own contribution in covering the damage caused. The amount of the excess is decided by the policyholder, and the insurance company, on the basis of this information, offers the injured person the price of the motor own damage insurance.
It is worth knowing that the greater the percentage of the insured in the coverage of the damage, the lower the sum of the insurance premium - unfortunately, this means lower compensation.
It is also possible to waive the insured person's share in covering the costs of the damage, but in this case the insured person must take into account a very high insurance premium.
5. Costs related to the depreciation of spare parts
The policyholder may choose the option of AC insurance with or without depreciation. The point here is that if you choose the "no depreciation" option, the insurance company undertakes to pay the entire cost of purchasing new parts. In the case of choosing the AC insurance "with depreciation", the insurance company covers the costs only up to the amount of their value decreased by consumption, that is, for example, 40%.
The "with depreciation" variant also applies to new cars, purchased at an authorized car dealer, but it is a rarely chosen option. Most often, the option "with depreciation" is chosen by customers who own cars that have been used for at least 3 years.