Car insurance: how to read and understand your contract?

 

Understand the basic terms of your contract

First, to fully understand your contract, it is essential to master the basic terms that make it up. For example, if you have subscribed to a netvox car insurance offer , here is how your contract will be structured.

Declarations

This part concerns you directly. It details information about you, your vehicle, the drivers declared in your household and the use you make of the vehicle. It is also in this section that you will find information concerning the amount of your insurance premium .

Coverage and Limits of Liability

This is where the guarantees of your contract are specified. It indicates what is covered by your insurance and up to what amount. This may include public liability, coverage against theft, fire, water damage and accidents.

Exclusions

This section is extremely important. It lists specific situations that are not covered by your insurance contract . It is essential to fully understand these exclusions to avoid surprises in the event of a claim.

Terms 

Here are listed the reciprocal obligations that you and your insurer must respect. This includes the terms of payment of premiums, the procedures to follow for making a claim, etc.

Types of coverage: from civil liability to comprehensive insurance

Car insurance coverage varies depending on the type of policy you choose. It is therefore important to understand the different options available.

• Civil liability  : this is the minimum coverage required by law. It covers damage you may cause to other people or their property in the event of an accident. However, it does not cover damage to your own vehicle.
• Collision insurance  : This coverage pays for repairs or replacement of your vehicle in the event of an accident, regardless of your fault.
• Comprehensive Insurance  : As the name suggests, this coverage offers the most comprehensive protection, including theft, fire, natural disasters, etc. It is generally more expensive, but may be worth it if you have a high-value vehicle.

The importance of candor

The excess is a crucial aspect of your car insurance policy, and it is imperative to understand its importance. It represents the amount you must pay before your insurer begins to cover the costs in the event of a claim .

For example, if your deductible is 500 euros and you have a claim of 1500 euros, you will pay the first 500 euros, and your insurance will cover the rest. Opting for a higher excess may lower your premium, but it also means you'll take on greater financial risk in the event of an accident.