Car insurance is an insurance contract that covers the risks created by driving cars in case of causing an accident.
There is a basic modality, whose contracting is compulsory for the owners of any vehicle, which is why it is compulsory insurance of the automobile that covers the civil liability of the owner and the driver of the vehicle – in the case that they are not the same person – for the damages and injuries that they cause to third parties. It also includes legal defense up to certain limits. This modality is regulated in detail by the state regulations.
Along with this basic modality, other voluntary supplements can be contracted: what is called voluntary civil liability insurance, which covers possible compensation to third parties over the amounts included in the compulsory insurance; the occupant insurance, the same as the previous one but specifically for the occupants of the vehicle; the insurance of own damages or insurance to all risk, by the damages that can suffer the vehicle of the own insured one; the insurance of moons, for the damages to the moons of the own vehicle, is a subspecies of the previous one; the driver’s accident insurance, which is insurance on the life of the driver himself, since he is not covered by the compulsory insurance; legal defense insurance insofar as it is not covered by the mandatory; travel assistance, etc.
There is also the “franchise” variant that is used above all in all-risk car insurance that instead of covering the total of the claim, only does so from an amount supported by the insured.
There are no basic modalities, they are called coverages and their characteristics are the following:
Civil Liability Coverage: this coverage only covers the damages or injuries caused by the vehicle that is insured to third parties, whether in their assets or persons, the theft of the vehicle and its damages are excluded.
Limited Coverage: this coverage covers the damages or injuries caused by the vehicle that is insured to third parties, whether in their property or persons and the theft of the vehicle is also covered, in this coverage the damage of the insured vehicle is not covered.
Broad Coverage: this coverage covers the damages or injuries caused by the vehicle that is insured to third parties, whether they are in their property or people, the theft of the vehicle is covered and the damage of the insured vehicle is also covered.
In all cases, legal defense coverage is covered.