How to choose car insurance and what are its differences
The automotive market has shown a sustainable rise, during March 2017 29,639 units were sold , which corresponds to 28.6% more than the same month of the previous year, according to figures from the ANAC (Chilean National Automotive Association), which has led many to wonder how to know which auto insurance is right for me. With more cars circulating on the streets of Chile, it is also necessary to worry about the unexpected when driving. For this reason, there are many insurance companies that offer various packages to drivers, protecting various sensitive aspects for a motor vehicle. Are you wondering what type of auto insurance is right for me? Here we tell you, or you can call Auto insurance Laredo Texas to help you solve your problem.
Mandatory Personal Accident Insurance (SOAP)
It is an insurance that is required and regulated by Law 18.490 in Chile , so that every owner of a motorized vehicle must hire it when acquiring their driving license, which facilitates the answer to the question of how to choose auto insurance. for this case. The insurance policy is unique and its preparation is borne by the Superintendency of Securities and Insurance (SVS). Its coverage considers the death or injuries of people involved in accidents involving an insured vehicle, and covers the reimbursement of medical and hospital expenses, in addition to the rehabilitation of the victim.
In the event of death , the amount of compensation is 300 UF per person and the beneficiary in the first instance is the surviving spouse. If not, the children, parents or whoever proves their status as heir agree.
In case of physical injuries , you must go to an emergency service, specifying that it is a traffic accident. Any type of person involved can be attended, be it a driver, passenger, cyclist, motorcyclist or pedestrian.
There is also coverage if the result of the accident is a total permanent disability (300 UF per person) or partial (up to 200 UF per person). It should be noted that hospital medical expenses reach an amount of 300 UF per person (level 03 FONASA), and cover pre-hospital care, transportation, hospitalizations, surgeries, dental care, prostheses, implants, pharmaceutical expenses and the rehabilitation of the victim.
Motor vehicle insurance
Unlike the previous one, its hiring is voluntary and covers material damages caused by a collision. This auto insurance can contemplate the partial or total damage of the vehicle, in addition to a clause in case of theft, theft or unauthorized use, depending on the terms of the contract.
By partial, it is understood that the percentage of the damage inflicted on your car is less than 75% of its commercial value. On the other hand, if it exceeds this figure, it is declared as a total loss by the insurer.
In the event of theft, a total loss is determined when 30 days after the complaint was filed with the Carabineros, the car has not been recovered.
As an additional tip, when hiring auto insurance always look at the deductibles or amounts that the insurer does not reimburse .
An accident that causes damage to third parties generates a high outlay of money for the person responsible , mainly due to civil liability and lawsuits. That is why there are also these car insurance, which can include the following coverages:
Emergent damage : liable for the physical damage of the victim and the vehicle.
Non- pecuniary damage : compensates the victim or beneficiaries for the psychological damage caused.
Loss of earnings : corresponds to the economic income that the victim ceases to receive due to the damages generated by the accident.
Most common terms in insurance
In each of these car insurance you will find common terms that you must handle in order to know how to choose car insurance from among several options. The most important are:
Premium : corresponds to the price of the insurance. You can pay it in monthly or annual installments, depending on the type of insurance and the company.
Coverage : it is the responsibility of the company to respond to the conditions in the policy in relation to the payment of the premium. In practical terms, this is what the insurance will pay in the end if there is a loss (accident, robbery or theft).
Deductible : it is a price previously agreed in the policy, which must be paid by the insured in each claim. It is not subject to refund.
Assistance and benefits : these are the additional attributes to the insurance coverage, such as the tow truck, technical review at no cost and a replacement car in the event of the accident.
Exclusions : are those risks that are not within the coverage. For example, it is common that they do not cover damage caused by natural disasters, wars or riots.
If you are still not sure about how to know which auto insurance is right for me, you can always decide on a comprehensive package, which allows access to full coverage insurance , which includes both material damage and civil liability and theft. The price may vary according to the age of the insured and his claims history. So what type of auto insurance is right for me? In short, being prepared for eventualities is essential. For this reason, at Derco we offer you DercoSeguros , a product that gives you the necessary peace of mind in case of unforeseen events. Consult more information when you quote your new car.