How to get a Car insurance? – Car Loans
About half of Lithuanian citizens use the car daily. According to the latest data, almost 1.5 million people are currently registered in Lithuania. M1 (passenger car) vehicles, ie slightly more than one car for two people.
It is no secret that in order to operate the machine properly, it must be insured with Motor Third Party Liability Insurance (TPVCAD). However, although we have a large number of drivers, we often have questions about the different types of insurance and the insurance and non-insurance situations that arise. Let’s go deep.
The car accident
Currently, the vast majority of insurance companies offer two types of car insurance: TPVCAD and Kasko. TPVCAD is indispensable for every vehicle owner, while Casco insurance provides additional protection during various incidents but is not mandatory.
Motor third party liability insurance is compulsory for all vehicles in use. This insurance covers loss caused by accidents. If the accident is caused by your fault, TPVCAD will cover any loss or damage to the health, life or property of others, but will not cover any resulting costs. However, if the perpetrator drove a malfunctioning car or was intoxicated, the insurance will not cover any costs and will be recovered from the perpetrator. If it is proven that the incident was not your fault, the costs you incur will be covered by the identified culprit insurance and your policyholder.
This insurance is valid not only in Lithuania but also in all countries of the European Economic Area. Along with the insurance contract, you are provided with a green card, which ensures that the insurance will be valid abroad as well.
Like all insurances, this one also has a list of non-insured events: if the vehicle was not in good working order, when the driver was intoxicated or intoxicated, if the vehicle was used for its intended purpose or in unsuitable places. As mentioned above, this insurance is only valid in the event of an accident and thus does not cover damage caused by natural disasters, theft or any other event in which the vehicle was not in use. So if your car door is scratched while parked or the car is damaged by hail, the loss will not be covered.
This type of insurance is optional
But it is definitely worth considering. Casco insurance provides a fairly wide range of additional protection for a vehicle, even outside of a traffic accident. This insurance covers the costs incurred if you are the culprit of the accident, including in the event of a natural disaster, a fire or a long-range accident. Certain insurance companies provide additional services to Casco insurance, such as roadside assistance or the cost of renting a replacement car.
Casco insurance costs more
Casco insurance also has an additional condition: a franchise. This is a certain amount of loss that the car owner has to pay. The amount of the franchise can be selected on an individual contract basis. In the event of an accident, if the amount of damage determined does not exceed the amount of the franchise, the car owner will have to cover it. The insurance covers amounts in excess of the Casco franchise.
Of course, this list is also covered by the list of non-insured events. If the driver is intoxicated at the time of the accident or is using a technically defective vehicle, the policyholder will refuse to cover the costs. Likewise, damages will not be compensated if the driver fails to take measures to prevent further damage to the vehicle or road users, such as continuing to operate a damaged vehicle after an accident.
Before you insure your car, it is important to consider a few additional factors:
- Think about who else will drive the car without you. Quite often several people in the family share a car, including young, less experienced drivers. For this reason, it is important to specify who the drivers will be when signing a contract so that in the event of an accident, the wallet will be significantly reduced.
- Think about passenger insurance too. Often this extra service costs a small amount, but provides extra security for your passengers or even pets.
There is also the possibility of insuring animals
Remember that the insurance company should be informed as soon as possible, usually within 3 days of the event, whether it was a call to the police or just a declaration on the spot. If the policyholder is subsequently informed, it may be necessary to cover part of the loss from his own pocket, as the policyholder has made it difficult to investigate the circumstances of the event.
As we can see, insurance and especially its contracts can be quite flawed. Do not be afraid to ask your broker any questions you are interested in before banning. Sign the contract only when you are absolutely sure that you understand each of the terms and conditions and that there is no doubt about the terms of the policy so that you do not have to sit down in the event of an accident. Have a good and safe trip!