The advantage of all-risk insurance on a new car – or a very recent one if you buy a used vehicle – is that it is more protective.
In addition to your civil liability, you protect your property from property damage, but also theft and attempted theft, arson, vandalism, natural disasters, etc. It includes and you are responsible for claims. It is also required if a car loan is not yet fully repaid because it includes a new value.
Beware of loss of value
The problem with any vehicle is that it loses value year after year; its rating drops and this rating will be used to compensate you if the vehicle is destroyed.
This is why all insurance companies agree that car insurance should evolve based on the age and value of the vehicle. If you own a car for € 20,000 with a premium of € 1,000 per year, in the event of a claim, the insurance will pay this amount as damage in the event of total loss.
But if the car is only worth € 1,000 after 10 years, you will get € 1,000 in compensation for a € 1,000 bonus; the equation is no longer good.
Advantages of the warranty changer
Switching from “all risks” to “third party” insurance saves you a bit; it’s all about choosing well. For a car that is about five years old, the extended third party may suffice, with theft, fire, and purchase value guarantees that will give you a refund on top of your purchase; with the age of the car, 0 km warranty assistance is also a good idea.
From the age of 7 or 8, your car has lost 75% of its value; the third party with flight / fire and assistance will suffice. After 10 years, the mandatory civil liability guarantee sufficient. And if you have an old car becomes a second car, insuring a kilometer is another option.
Pay attention to expenses
If you want to change coverage for third party or extended third party insurance, you need to evaluate your ability to cover certain expenses that will not be covered by the third party.
Does your savings allow you to replace a damaged vehicle or to commit hundreds or thousands of euros in repairs while waiting to be compensated? If the answer is no, it is probably best to keep your insurance safe