Car insurance is a frequently discussed topic, whether for taking out a new policy or renewing an old one. However, many gray areas remain regarding the guarantees offered. Liability insurance is one of them. But is it a requirement in the car insurance contract?
Key concepts around car insurance
Before delving into whether liability insurance is an integral part of every car insurance contract, it is essential to understand the meaning of the terms related to this topic. Let’s start with automobile liability insurance. This guarantee aims to compensate victims of a road accident for which the insured driver is wholly or partially responsible. More specifically, it covers material damages caused to another vehicle or someone else’s property, as well as medical expenses and bodily injuries.
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Another central concept is the car insurance contract. It is a legal act through which an insured party (individual or business) subscribes to various guarantees with an insurance company. You will find several on the market; Leocare is one of them, and you can find more information by clicking here. The company has even been certified “customer relations service France” since 2021. By subscribing to such a contract, the insured pays premiums in exchange for compensation in case of material or bodily damages resulting from an accident.
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Liability insurance: a requirement not always respected for car insurance
Although the law makes it mandatory to take out a liability insurance contract for any vehicle that circulates, this guarantee is not always included in the car insurance policies offered. For example, in a fleet managed by a company, the group insurance taken out may not include liability coverage.
Similarly, some contracts aimed at young drivers or seniors sometimes offer plans without this guarantee, which can be more financially advantageous. Intriguing, isn’t it? An attorney specializing in insurance law will tell you: driving without liability insurance is subject to severe criminal penalties. Therefore, it is essential to pay attention to the mentions regarding the mandatory guarantees contracted.
It is also worth noting that liability insurance may only be valid beyond a certain amount of damages, below which the insured will have to cover the costs. This is the infamous “liability deductible.” So be cautious of any restrictive clauses that could call into question the contract’s compliance with the insurance code.
Other useful guarantees of car insurance
Beyond the mandatory liability guarantee, many optional complementary guarantees are available from car insurance companies. Some are particularly useful to subscribe to depending on the situations. The driver guarantee, for example, covers the health costs and bodily injuries of the driver themselves in case of an accident, whether they are at fault or not. Useful for young drivers or in the absence of health insurance.
You also have glass and breakage guarantees. They come into play in case of damage or breakage of windshields, windows, or mirrors. This helps avoid sometimes significant costs. Fire insurance also exists. It is useful in the event of total destruction of the vehicle. It can be an interesting complementary guarantee. Ultimately, each situation requires tailored guarantees: professional or private use, vehicle value, driver’s age… The advice of a broker will help you create the best package.