BlaBlaCar sells car insurance products from Axa

BlaBlaCar is iterating once again on its marketplace strategy for all your car needs. You can now buy your car insurance from BlaBlaCar directly with a new product called BlaBlaSure.

The company is working with Axa  for this insurance product. You’ll be able to select an insurance product between three different tiers, from basic third-party liability to comprehensive coverage.

You might think there’s no reason to buy your insurance through BlaBlaCar, but the company has worked on some particular benefits. First, you don’t have to pay any excess for damage that occurs when you’re driving on BlaBlaCar.

Second, BlaBlaCar is leveraging its data for the pricing structure. According to the company, active drivers on BlaBlaCar have to deal with fewer accidents on average. So BlaBlaCar drivers will end up with a lower premium compared to standard Axa clients.

For now, the product is only available in France but the company can expand it to other countries if there’s enough interest.

This isn’t the first time BlaBlaCar opens new services to find new revenue streams. For instance, the company lets you lease an Opel Corsa or an Opel Mokka and save on your monthly fees if you use this car on BlaBlaCar.

Teenage driver slams ‘unfair’ €16,785 car insurance quote

A teenage driver has slammed his “unfair” quote for insurance on a 2004 Ford Fiesta – nearly €17,000.

Nathan Guilfoyle, 18, who passed his test in January, told of his despair when he saw the figure from Allianz.

He added: “My original reaction was that it was really unfair rather than being shocked.

“You do expect high enough prices but when it came to that one, I thought, ‘OK €6,000, €5000, I can see why they might go high enough.

“But when I saw €16,785.01, which is eight times what the car is worth, I just thought it was unfair.”

The Leaving Cert student, who has a clean licence and never been involved in a crash, said he believes some companies do not want to insure young motorists.

Nathan, from Claremorris, Co Mayo, added: “I think that’s definitely the case. I don’t think they’re being proper with that figure.

“I think there’s an element they don’t want to insure young drivers.

“I know there’s a stigma around us but I think it’s just unfair for everybody involved because most of the lads I know just want to have a car and drive around.

“We’re a victim of other people; we don’t get a fresh start. We don’t get a clean slate. I think it’s unfair the way the whole system works really.”

Nathan’s mum Irene phoned the Tommy Marren Show on MidWest Radio yesterday to speak about her son’s premium after Fianna Fail TD Dara Calleary discussed the need for more transparency in the sector.

She said: “We wanted Nathan on his own policy because it’d be there and it’d be handy and he could bring himself and Dean to school and drop my other daughter to school.”

Asked about her reaction to the Allianz Insurance quote, Irene added: “You could only laugh because what planet are they on?

“They don’t want to insure young drivers I think and that’s their way of not taking them on.

“A lot of them [insurance firms] won’t even quote young drivers now. Some of them did give us quotations and they were about €5,500 or €6,000 but even at that it was mental.

“He’s insured now. My renewal came up in April so I insured Nathan and his younger brother, who’s on a provisional.

“They’re both insured now for €1,500 with Axa as named drivers. And we’re happy with that.”

Allianz Insurance was contacted for a comment but did not reply.

Does it make sense to file your car insurance claim frequently?

It is a human tendency to rush for an insurance claim every time something untoward happens. This holds true in case of car insurance also. True, making a car insurance claim in case of any accident or damage to your vehicle is your right, and you should definitely exercise it. After all, that is the main purpose of getting one’s car insured. However, does it make sense to make a claim on your car insurance frequently or every time something happens?

According to industry experts, there is no hard and fast rule for filing an insurance claim. However, before making a claim, keeping some basic facts in mind and doing some calculations may help someone take the right decision.

“Insurance acts as a financial shield against any unforeseen accidental damage, which can make your vehicle not fit for use. However, you can avoid making frequent claims for smaller damages to the vehicle, especially when they don’t affect the vehicle’s performance. Frequent claims will pay for your repair expenses, but will also affect your No Claim Bonus (NCB) and possibly will make your insurance premium higher at times of renewal,” says Sasikumar Adidamu, Chief Technical Officer, Bajaj Allianz General Insurance.

Rajiv Kumar, MD & CEO, Universal Sompo General Insurance, also says that sometimes, raising a claim on your car insurance policy might not be the best option as the insurance policy attaches great significance to the number of claims you raise.

For instance, “damages where the repairs are minute with lesser monetary inputs like a broken headlight or a mirror damage etc. should not be claimed under the policy as the cost of repairs involving your vehicle is substantially lesser than the applicable NCB (No Claim Bonus), which you will enjoy after every claim-free renewal,” he says.

Similarly, you should avoid making claims for small dents and scratches, whereas, for a bigger expense like front collision, you should take the insurance benefit. “With this approach you can get the best of your motor insurance, and at the same time you can ensure that the premium is not high too,” says Adidamu.

You also need to keep this fact in mind that most car insurance policies come with ‘deductible’ or ‘excess’, which is the portion of any claim amount that the insured will have to compulsorily bear himself on account of any claim under the policy, leading to less benefit for smaller claims. Even if a single claim is made, the NCB goes back to zero. Therefore, it is advisable to make a claim in the event of a big loss and avoid filing it in case of little mishaps.

For instance, if the claim amount is Rs 3000 and the applicable deductible is Rs 1000, then the amount payable by the insurer towards the claim will be only Rs 2000. Here the policyholder is not getting the full claim amount as well as he is going to lose his applicable NCB — which helps one avail a discount ranging from 20-50% on the own damage premium — on renewal premium. Hence he should avoid filing such claims.

What to keep in mind while filing a claim?

There is, thus, no well-defined criteria/rules to decide whether to file a motor OD (own damage) claim or not. However, a few points you should have in mind to decide on raising a claim are the quantum of loss, the impact it would have on NCB (no claim bonus) and applicable deductibles.

You should also be aware that frequent smaller claims put the insured at a higher risk level and, thus, the renewal premium will surely be high. Therefore, it is advisable to avoid smaller claims like a minor dent on the bumper or minor paintwork on the body of your car, etc.

It is a fact that “insurance companies cannot reject a claim based on the extent of the damage, unless the damage to the vehicle is caused due to events which are not covered under the policy. However, avoiding smaller claims can help in the event of a big loss and save your accrued NCB,” advises Kumar.

Car insurance prices fall as whiplash injury claims are curbed

Car insurance prices have fallen for the first time in three years, partly thanks to plans to crack down on claims for whiplash injuries.

Premiums have dropped by an average of 7 per cent – or £59 – in the first three months of the year, according to research by Confused.com. Prices fell 2 per cent – or £13 – in 12 months after rising in the last quarter last year.

The insurance portal said a government bill to curb the number and cost of whiplash claims was already leaving drivers better off.

Men are now paying an average of £810 for cover, and women £715, the survey showed.

Last month the justice secretary, David Gauke, unveiled plans to set a cap on whiplash claims and force claimants to provide medical evidence.

It is believed that exaggerated and fraudulent claims and compensation culture cost ordinary motorists at least £1bn a year.

Mr Gauke said the government wanted to ensure whiplash claims were no longer “an easy payday”.

“The number of whiplash claims has been too high for too long, and is symptomatic of a wider compensation culture,” he said.

Bogus claims uncovered by the industry include:

  • Last year insurer Admiral said a quick-thinking driver helped block a bogus claim by taking photos when one car collided with the rear of another whose driver tried to claim £1,000 for damage and whiplash
  • Footballer Gary Burnett, from Wigan, claimed he was so badly injured in an accident at a fast-food drive-through that he could not play and claimed £2,000. But he was ordered to pay £11,000 court costs for fraud and was given a four-month suspended jail term
  • In January this year, two drivers who tried to claim £90,000 for a crash they engineered in Cambridgeshire admitted fraud and were ordered to pay £70,000 in legal costs

Ministers last month also proposed changes to the way personal injury payouts are calculated following serious injuries – the so-called Ogden rate. Insurers said although the reform will not take effect until next April, it was also already contributing to plunging premiums.

The website’s survey stated: “Insurers seem to have softened prices as the Government has announced a review of the Ogden Rate discount, expected in April 2019, which could mean insurers pay out less when drivers make a claim.

“The government has also announced a reform to the way whiplash claims are calculated and paid which may have also had an impact.”

It added: “However, the average comprehensive car insurance policy is still an eye-watering £768. And research reveals customers who renew with the same insurer are not benefiting from these savings.”

6 ways to cut car insurance costs

Did you know the average driver faces an annual insurance premium of 680$ with drivers younger than 25 paying over 1,400$ for cover? Here are our top 10 car insurance cost-cutting tips that can save you 100s.

Don’t assume third party is the cheapest

You would expect third-party cover to be the cheapest because it is the lesser cover, just covering the person you bump into and their car. Yet don’t expect car insurance to be logical.

With some insurers the mere fact you have selected comprehensive, which includes your car too as well as fire and theft, means you’ll be assessed as a lower risk (based on actuarial history, which is what an insurer will hold about a particular age group or address, for example, on which they base their premiums).

This can outweigh the fact you get more cover, and make your policy cheaper.

There are no hard rules here, it’s a matter of trial and error, yet if you’re just looking for the very cheapest cover, never only check third party.

A responsible 2nd or 3rd driver can cut costs

It may seem counter logical, but covering an extra driver can reduce rather than increase your cost – in some cases by 100s or 1,000s. Here are seven quick tips on how to do it most effectively…

  • Car insurance is all about risk. That’s why it can work. If you’re a high-risk driver and you add someone who is a much lower risk as a 2nd (and/or 3rd) driver, they can bring down the average risk and you may get a cheaper policy.
  • This isn’t just for young drivers. While it works well for young drivers as they are automatically seen as a high risk and know many people, like their parents, who may be lower risk, it can work for anyone. But of course, it’s especially powerful for those with costlier insurance.
  • The better the driving history and lower the risk, the more impact it should have. Those with a good driving record are likely to help make the most savings, but anyone who’s a lower risk can help. By law insurers can’t discriminate over gender, but age, driving experience and history can make a difference.
  • This is about trial and error, not logic. Your mum may increase the cost, your brother may cut it, or vice versa. It’s just a question of trying different quotes and seeing what happens.
  • Different insurers respond in different ways. One may cut your costs adding your uncle, another may increase it. A quick way to check is by varying quotes on comparison sites – it’s easy to do, see our top comparison sites list below.
  • The second driver should be someone who would reasonably drive your car. So don’t add Lewis Hamilton, unless you happen to be his brother (and even then racing drivers are likely a very high risk so I wouldn’t bother) – but your mum, son, best mate or gran should be OK – as long as they would drive the car.
  • Never add someone as main driver if they’re not. This is known in the industry as ‘fronting’ and is fraud. If you do it and are caught, you can face a criminal conviction and your insurance will likely be invalid.

 

Tweak your job description – some save 100s

Another quick win is tweaking your job description (legitimately of course). An illustrator is often cheaper than an artist, an editor than a journalist, a PA than a secretary.

 

Beware paying monthly

A monthly payment plan for your insurance is essentially a high-interest loan. For example, if your premium is 1,000 and want to pay monthly, you could pay 95/month, which is 1,140/year (140 more) at a huge APR of 25%.

So either pay in full, or if you can’t afford it, use a credit card with a lower APR rate (or better still, a 0% credit card for spending, ensuring your repayments are big enough to clear it within a year).

If paying by credit card, check if the insurer or provider charges a fee for doing so – though the fee is usually less than the interest charged on monthly instalments.

Insurers charge more each year, knowing inertia stops policyholders switching. And even though new rules mean insurers must now tell you the premium you paid last year in correspondence to you, don’t rely on this to take action.

If your renewal is coming up, jot it in your diary to remember it. Compare comparison sites and then call your insurer to see if it can match, or even beat, the best quote you found. If it can, you’re quids in.

Don’t pimp your ride. Lock it down

For those over the age of 50, ‘pimping your ride’ involves decking it out with fancy alloys, windows and spoilers. The more changes you make to your car, barring security ones, the more you’ll be charged. Always tell your insurer about any modifications and whether you made them or not, or it may invalidate your policy.

The exception to this rule is if you’ve a classic car needing insurance – in this instance, insurers accept modifications as a natural part of classic car ownership and don’t penalise you with higher premiums.

Even more savings are there for the taking for normal car owners if you can protect your vehicle by securing it. Fitting an alarm or immobiliser (especially one approved by Thatcham) will reduce the bill substantially.

What are the types of Car Insurance Coverage?

When getting an insurance quote, it’s worth looking at how much it costs to insure your car for each level of cover before you buy.

It’s good to save money, but it’s also good to strike a balance between how much you pay and how much protection you get. Don’t compromise on cover just to save a few quid.

1. Liability Insurance

Liability insurance covers you in the event you are in a covered car accident and it is determined the accident is a result of your actions. Liability insurance will cover the cost of repairing any property damaged by an accident as well as the medical bills from resulting injuries. Most states have a minimum requirement for the amount of liability insurance coverage that drivers must have. If you can afford it, however, it is usually a good idea to have liability insurance that is above your state’s minimum liability coverage requirement, as it will provide extra protection in the event you are found at fault for an accident, as you are responsible for any claims that exceed your coverage’s upper limit. You wouldn’t want to run the risk of having to pay a large amount of money because your policy limit has been exceeded.

2. Collision Coverage

If there is a covered accident, collision coverage will pay for the repairs to your car. If your car is totaled (where the cost to repair it exceeds the value of the vehicle) in an accident, collision coverage will pay the value of your car. .

If your car is older, it may not be worth carrying collision coverage on it, depending on the value. On the other hand, if you have a more expensive car or one that is relatively new, collision insurance can help get you back to where you were before any damage to your car. Note: If you have a lienholder, this coverage is required.

3. Comprehensive Coverage

What if something happens to your car that is unrelated to a covered accident – weather damage, you hit a deer, your car is stolen – will your insurance company cover the loss? Liability insurance and collision coverage cover accidents, but not these situations. These situations are covered by Comprehensive (other than Collision) coverage.

Comprehensive coverage is one of those things that is great to have if it fits in your budget. Anti-theft and tracking devices on cars can make this coverage slightly more affordable, but carrying this type of insurance can be costly, and may not be necessary, especially if your car is easily replaceable. Note: If you have a lienholder, this coverage is required.

4. Personal Injury Protection

While Comprehensive coverage may be something you don’t need to purchase, Personal Injury Protection (PIP) is something you should. The costs associated from an accident can quickly add up, and in order to cover those costs Personal Injury Protection is available. With this coverage, your medical bills along with those of your passengers will be paid, no matter who is at fault for an accident. Note: This coverage is not available in all states.

5. Uninsured /Underinsured Motorist Protection

While state laws mandate that all drivers should be insured, this is unfortunately not always the case. Another issue that can arise is that while a driver may have liability insurance, many states have relatively low minimum coverage requirements that may not be enough to cover all of the expenses of an accident. So, if someone is legally responsible for damages related to an accident, you won’t receive any payment if they do not have coverage or you will receive less than you need to cover the cost of damages if your damages exceed their coverage amount. This is the type of situation where Uninsured and Underinsured Motorist Protection would help with expenses.

HOW TO CHOOSE THE BEST CAR INSURANCE COMPANY

Understand what coverages and amenities you’re looking for in a car insurance company. Are you solely looking for cheap auto insurance? How might choosing the cheapest option affect your actual coverage? What about customer service—that’s important, too, right?

Know your priorities before you begin looking to buy car insurance. Ideally, you’ll want a company that offers great coverage at an affordable price from customer service-oriented agents.

Below are some ways to find the right policy and cut your premiums.

  1. Do an annual rate check. Check rates from other companies to make sure you are getting the best deal. Many state insurance departments offer guides to available services, and while online you can find insurance comparison tools. Of course, personalized quotes aren’t immediate and often require a call back from an agent, but comparison shopping online can be a time-efficient way to find a better deal.
  2. Pick a top-rated insurer. When we last surveyed readers/subscribers on their auto insurers, we found that all rated companies did well, but some were better than others with dealing with claims, payments, and non-claim problems. See our full Ratings of car insurers.
  3. Maintain good credit. Regularly check your credit score since a low score may impact your premium.
  4. Set the right deductable. A higher deductible reduces your premium, but you have to pay more out of pocket in the event of an accident. If you have a good driving record and haven’t had an accident that was your fault, you may want to gamble and opt for a higher premium. The reward for this risk could be up to a 40 percent savings.
  5. Review your coverage. Check to make sure you have enough liability coverage for bodily injury and property damage. Over time, costs and risk increase, and so should your coverage. Simply put, minimal coverage gives you minimal protection.
  6. Report reduced mileage. If you’ve changed jobs, are now working at home, or have become unemployed, call your insurer. By driving less, you may qualify for a lower premium.
  7. Watch crash repairs. Check to see where your insurer sends you for repairs, as the repair shop may push you to use cheaper replacement parts, rather than original equipment from the manufacturer (OEM parts). Tests have found that some non-OEM parts can fit poorly, are more prone to rust, and don’t necessarily meet federal safety standards.
  8. Choose the right car. Vehicle damage and the cost for repair is a big part of the price of auto insurance. When looking for a new car, compare the data on collision by vehicle model. The Insurance Institute for Highway Safety (IIHS) has information and losses by vehicle model at www.hldi.org/research/hldi/composite_intro.html. Your car dealer should also have a booklet on relative collision insurance cost produced by the National Highway Traffic Safety Administration (NHTSA). Also, estimated insurance fees are part of the owner cost information Consumer Reports provides online for all new models.
  9. Beware of scams. Crooks can rip off drivers with staged accidents, which could result in an insurance claim against you. To avoid this unpleasant scenario, follow good driving practices and if you are in a crash, photograph the crash scene and always call police to report the incident.
  10. Take advantage of discounts. Discounts are available for drivers considered to be lower risk (older, married, and/or long safe driving record) or those who take a driver-training course. Anti-theft and certain safety equipment can also reduce your cost. Bundling insurance with auto and home is another option to consider, but check out the total costs with and without combining policies to see which scenario is cheaper.

Types of Car Insurance

When deciding on your Auto insurance policy or making changes to your coverage, it’s important to understand what each option does, and how it would work if you ever needed it. Some coverages are required by your state, while others are extra options you may want to expand your coverage.

1. Liability Insurance

Liability insurance covers you in the event you are in a covered car accident and it is determined the accident is a result of your actions. Liability insurance will cover the cost of repairing any property damaged by an accident as well as the medical bills from resulting injuries. Most states have a minimum requirement for the amount of liability insurance coverage that drivers must have. If you can afford it, however, it is usually a good idea to have liability insurance that is above your state’s minimum liability coverage requirement, as it will provide extra protection in the event you are found at fault for an accident, as you are responsible for any claims that exceed your coverage’s upper limit. You wouldn’t want to run the risk of having to pay a large amount of money because your policy limit has been exceeded.

2. Collision Coverage

If there is a covered accident, collision coverage will pay for the repairs to your car. If your car is totaled (where the cost to repair it exceeds the value of the vehicle) in an accident, collision coverage will pay the value of your car. .

If your car is older, it may not be worth carrying collision coverage on it, depending on the value. On the other hand, if you have a more expensive car or one that is relatively new, collision insurance can help get you back to where you were before any damage to your car. Note: If you have a lienholder, this coverage is required.

3. Comprehensive Coverage

What if something happens to your car that is unrelated to a covered accident – weather damage, you hit a deer, your car is stolen – will your insurance company cover the loss? Liability insurance and collision coverage cover accidents, but not these situations. These situations are covered by Comprehensive (other than Collision) coverage.

Comprehensive coverage is one of those things that is great to have if it fits in your budget. Anti-theft and tracking devices on cars can make this coverage slightly more affordable, but carrying this type of insurance can be costly, and may not be necessary, especially if your car is easily replaceable. Note: If you have a lienholder, this coverage is required.

4. Personal Injury Protection

While Comprehensive coverage may be something you don’t need to purchase, Personal Injury Protection (PIP) is something you should. The costs associated from an accident can quickly add up, and in order to cover those costs Personal Injury Protection is available. With this coverage, your medical bills along with those of your passengers will be paid, no matter who is at fault for an accident. Note: This coverage is not available in all states.

5. Uninsured /Underinsured Motorist Protection

While state laws mandate that all drivers should be insured, this is unfortunately not always the case. Another issue that can arise is that while a driver may have liability insurance, many states have relatively low minimum coverage requirements that may not be enough to cover all of the expenses of an accident. So, if someone is legally responsible for damages related to an accident, you won’t receive any payment if they do not have coverage or you will receive less than you need to cover the cost of damages if your damages exceed their coverage amount. This is the type of situation where Uninsured and Underinsured Motorist Protection would help with expenses.

Saving tip: It’s usually relatively inexpensive to add uninsured/underinsured motorist protection to your car insurance policy, especially considering the amount of protection it offers.

What are the most expensive car parts to repair?

The structural elements of the vehicle are the most expensive to repair in the event of an accident.
Taking the car to the workshop often involves, in many cases, a significant outlay of money. One way to prevent this from happening is to keep the vehicle in good condition. However, there are other unforeseen damages that occur after a traffic accident. Depending on the severity and parts of the car affected, the cost of repair will be higher or lower. For this reason, there are insurance policies that, in addition to protecting the damage caused to third parties, also cover the damage of the car itself, such as comprehensive insurance.

What are the most expensive repairs to insurance after a claim?
According to GT Motive data, more than 88% of repairs made in garages are paid for by insurance. Given this high turnover, many insurers have associated workshops.

In addition, it states that’ if the damage occurs in the central area, repair costs increase exponentially because it is a virtually undeformable area, since it is responsible for protecting the occupants’. This usually happens after a major impact.

Conversely,”the front and rear zones are designed to transform kinetic energy (generated by motion or speed) into deformation energy. This explains why these types of parts are less damaged and more affordable to repair.

However, the key factor in determining the severity of an accident is speed. Damage suffered is often directly proportional to the speed of a vehicle’s movement, which also affects areas that can be damaged.

Lateral, frontal and rear impacts
As for the gravity of the impacts, Andrés Herrera states that the laterals are usually the ones that cause the most deformations in a vehicle. Structural elements that are damaged after such an impact are usually doors, flaps, pillars, abutments, stirrups, shock absorber turrets, etc. The mechanical parts that can be damaged are bridges, wheels, bushings, bearings…”.

Side impacts are the ones that cause the most deformations in a vehicle.

On the other hand,”frontal accidents cause structural damage to bumpers, sleepers, foreheads, fins, wheel arches and main and top beams; and mechanical damage to radiators, fans, sleeves, etc.”.

In terms of rear impact, the parts that are damaged are the bumper, sleeper, fins, wheel arches, trunk floor, tailgate and tail rails. In addition, depending on the intensity of the impact, some of the components of the vehicle’s rear axle may be lost.

Which cars are most expensive to repair
With regard to the type of vehicle, Andrés Herrera explains that “if the damage caused affects the mechanical elements, the cost of repair will be higher in a hybrid vehicle than in a gasoline or diesel vehicle, mainly due to the increase in the price of parts. In the same way, it will also be more expensive to repair a high-end vehicle than a standard one. However, when it comes to structural elements, the repair price will only be different if the car model varies.

What are the most expensive breakdowns in a car?
In addition to damage caused by an accident, the car may require repairs for other reasons. Neglecting vehicle maintenance, misuse, or even using a poor quality fuel can damage the vehicle’s mechanical components and repairing them is often quite expensive.

The turbo
Among the most expensive repair elements is the turbo. The price of a new one is between 1,000 and 5,000 euros, depending on the vehicle. In addition to this, we have to add the labor, which is usually about 8 or 9 hours. This malfunction is usually caused by running with the engine very revolutionized, with excess temperature, lack of lubrication or impurities in the oil, among others.

The injectors
Other components that cost more money are injectors, especially diesel because they are more expensive. They are usually damaged by use, but can also be caused by poor fuel quality. Replacing them costs around 2,000 euros and about 30 hours of labour.

Fuel pump
The fuel pump is a very delicate part. It is often broken by the consumption of poor quality gasoline containing water or metal. If this happens, the repair costs between 700 and 2000 euros and requires between 8 and 20 hours of labour.

Distribution belt
Breakage of the timing belt is another major expense. It’s not so much the cost of the strap itself as the damage it causes when broken. Repairing all the elements that can damage entails an expense of between 300 and 2,500 euros, plus labor of between 8 and 20 hours.

Gripping the engine
Another of the worst faults that a vehicle can suffer is the engine flu. This happens because it is subjected to a very high temperature. The price of the repair does not usually fall below 1,500 euros and can reach up to 6,000.

Cylinder head gasket
Replacing the cylinder head gasket is very laborious, it takes between 15 and 25 working hours and the cost of the part ranges from 400 to 800 euros. It usually occurs due to engine overheating. To avoid this, it is advisable to periodically check the vehicle coolant

Gearbox
Although less frequent, the gearbox can also break down. This is usually due to neglect of vehicle maintenance or bad practice when changing gears. The cost of repairing or replacing damaged parts ranges from 1,000 to 3,000 euros.

Repairing a car after an accident
Although all vehicles are obliged to have at least Civil Liability insurance, this will only be liable for damages caused to third parties, but not those suffered by the insured car itself.

If the situation occurs the other way round and it has been someone else who has caused the incident, it will be your insurer who will have to pay for the repair of the damage, regardless of the insurance that the other vehicle involved has taken out.

All Risk Insurance
However, if the insured person wants to have a more complete protection and if his or her insurance covers the damages that may be suffered by his or her vehicle, he or she has to take out a comprehensive insurance policy, the only one that has its own damage coverage. This means that the insurance company will cover the costs of repairing the car in the event of a claim, whether the driver is at fault or unknown (for example, if the car was parked in the street and someone breaks a rearview mirror).

How do you assess whether a car can be repaired or declared a total loss?
When there is a serious accident, in which the car is seriously damaged, or a major breakdown, can not always be repaired or compensated financially. In this case, according to Andrés Herrera, professor of Automotive and Electromechanics, it will be necessary to prepare an expert appraisal or repair estimate, which will be carried out by an expert appraiser or an authorized workshop.

If the vehicle’s repair value is greater than its market value, it is normal for the car to claim total loss.

In this way,”the first thing to be calculated is the market value of the damaged vehicle. Behind this, there are several possibilities. The first is that the repair value is greater than the market value. If this happens, the vehicle will be declared a total loss and its remains will be scrapped. As far as compensation is concerned, if the owner has Full-Risk insurance or has not been at fault for the accident, the insurance company will have to pay you the amount of money stipulated in each case. On the other hand, if the value of the repair is less than or equal to the market value of the car, it can be repaired and the insurance will cover the costs.

Legal defence and claim for damages

If you are insured, you can claim on your insurance.

However, it is your choice whether you claim on your insurance policy. If you make a claim, you may have to pay an excess if you are at fault and may lose your no-claim bonus.

There are two types of insurance for property damage.

    1. Comprehensive insurance covers damage to your own car as well as damage to other cars and property, regardless of whether you caused the accident or not.
    2. Third party property insurance usually only covers damage you do to another car or property. However, if the other driver is at fault and uninsured, you are also able to claim (often up to around $5000) for damage to your car under the little known Uninsured Motorist Extension (UME) term of your third party property policy.

Common defenses generally fall into two separate categories: legal defenses and factual defenses. Legal defenses are defenses that prohibit a claim based on an existing law or rule. The most common legal defense to a car accident injury case is violation of the statute of limitations. Factual defenses are defenses that are dependent upon the actual specifics of the case, and can include defenses of contributory or comparative negligence and failure to mitigate damages.

The most common factual defenses to a car accident injury claim involve fault – unless the accident occurred in a no-fault state. The defense will often seek to limit their liability to pay by showing that the plaintiff was responsible for causing the accident – either completely or in part. Depending on the state in which the accident occurred, there are varying rules on compensating plaintiffs who are, at least in part, responsible for causing the accident. States typically follow one of two rules: Contributory negligence or comparative negligence

Comparative negligence is a factual defense to a personal injury case. In states that have adopted comparative negligence as a valid defense, each party involved in an incident — whether a party to the lawsuit or not — is assigned a percentage of fault based upon the facts of the case. Once the percentage of fault is assigned, local law will usually dictate what percentage of any verdict may be recovered, and from whom.

Contributory negligence can be a crippling factual defense to a personal injury case. In the handful of states that follow this rule, any party that contributed in any fashion to the incident causing injury is barred from getting compensation from other parties.

Going to court

If negotiations fail, your next resort is court action. Think carefully before taking court action. If you lose, you may have to pay the other side’s legal costs. Even if you win, you may not be able to recover any money. Also, court action takes time and can be stressful. If you do start court  action, you will need to know the name and address of the other party or parties. This is usually the driver but can also include the owner.  Court action for property damage must usually start within six years of the date of the accident. Drivers under 18 must similarly claim within six years  from when they turn 18.

The Local Court is divided into two divisions:

  • Small Claims Division for claims up to $10,000.
  • General Division for claims over $10,000 and up to $100,000.

The person who starts legal proceedings is called the plaintiff. The person who is being sued is called the defendant.