What are the terms and conditions of an auto insurance policy?
The terms and conditions of a car insurance policy describe what is and is not insured. Often it is quite a bit of text. Therefore, reading through the terms and conditions of a car insurance policy is not always a fun job. Because it is important to be well informed about the contents, we have listed the most important conditions for you.
Do conditions vary by insurer?
Although all car insurance policies may appear the same on the face of it, there are often differences in terms and conditions. For example, one insurer offers a replacement car after an accident, but another insurer has a good new-value policy. Therefore, when comparing car insurance policies, it is important to look not only at the amount of the premium, but also at the terms and conditions. After all, good policy conditions can make all the difference.
Does car insurance have conditions?
When taking out car insurance, it is important that you always read the terms and conditions carefully in advance. This way you will not be faced with unexpected surprises in case of damage. You can also determine which conditions you find important. Do you have a brand new car? Then a car insurance with a good new value arrangement is useful. With this scheme, in case of damage, the new value of a car is paid out if the damage happens in the first three years. If you already have a somewhat older car, this is not so interesting and you may prefer a car insurance that offers a replacement car in case of damage.
Auto insurance deductible
The deductible is the amount you pay yourself in case of damage. Most insurers apply a deductible between €130 and €150. There are also some insurers that do not apply a deductible. Insurers use a deductible to make the threshold for claiming damage higher. Read more about the deductible with car insurance here.
Term of notice for car insurance
When canceling a car insurance policy, you have to deal with a notice period. A car insurance policy has a standard term of one year. After this year, you can cancel the insurance monthly. There are even insurers where the insurance can be cancelled daily. If you sell the car, the car insurance can be cancelled immediately. You then have nothing more to insure. Read more about the notice period of car insurance here.
What is new-value auto insurance?
If you are buying a new car, it may be wise to choose a car insurance policy with a good new-value policy. With the new-value scheme, the insurer will give you an amount high enough to buy the same car new, if your car is declared totaled or stolen. The scheme only applies to new cars and is only available if you are the first owner of the car.
Acquisition value scheme car insurance
Check the terms of your car insurance policy for the purchase value policy. This is aimed at used cars. If this scheme is included in the car insurance according to the terms and conditions, the purchase value of the car is assumed for a certain period of time. Read more about the purchase value scheme here.
Current value of the car
When damage occurs, the daily value can play an important role. The current market value is the value of the car just before the damage. Car damage is repaired unless the repair costs exceed the current market value of the car. In that case, you will be paid the current market value of the car. The car is then totaled. When determining the current market value, not only the age of the car is considered, but also the state of repair and mileage.
Young driver deductible
The terms and conditions of car insurance also always state how high the deductible is for younger drivers. In fact, younger drivers often pay a higher premium until the age of 24. This is because they are more likely to cause damage than more experienced drivers. For some insurers, however, this is not enough. They also set an additional deductible in the policy conditions if the damage is caused by young drivers.
What happens when you get behind the wheel with alcohol on?
Everyone knows that alcohol and driving do not mix. Insurers, therefore, take strict action on claims where drunk driving is the cause. In many cases, the insurer has an alcohol clause. An alcohol clause means that the insurer will pay for the damages for the other party, but you must then pay these costs back to your insurer. Not every insurer has an alcohol clause, so it is important that you look carefully at the policy terms when purchasing car insurance. Read about the consequences of driving with alcohol on.
Excess for windshield damage?
Windscreen damage is always subject to a different deductible. For windshield damage, your insurer will usually refer you to an affiliated repairer. You can also find the list of affiliated repairers on your green card. If the window does not need to be replaced, but it is a small hole that can be fixed, there is usually no deductible. If the window needs to be replaced, however, you will pay a deductible. With some insurers, however, the deductible is halved if you have it done at an affiliated repair shop.
Damage control by the insurer?
As mentioned above, insurers like you to have damage repaired at an affiliated repair shop. This is called damage control. They do damage control by, for example, lowering the deductible if you go to an affiliated bodyshop.
What is surety in a foreign country?
Of course, you hope not, but it can happen that you have a collision abroad. You will then face bail. The police may confiscate your driver's license or car, and you may even end up in jail. If your car is impounded, you can get it back on payment of bail. Your insurer can help you by advancing the amount, which is called bail. The same is true if bail is needed to get you out of jail. The maximum amount the insurer will pay is stated in the terms and conditions.
When to exclude coverage?
The terms and conditions of auto insurance policies also always list exclusions. These are situations in which you have no coverage . This is for example when renting out the car or if you participate in a speed contest. Also, if you get into the car under the influence or if you drive a car without having a valid driver's license, the car insurance will not provide coverage. Read more about the exclusions here.
Get car insurance through Alpina
Want to buy car insurance directly? Then you can at Alpina.nl! You can first calculate an indication of the premium. For this you only need the license plate of the car. After entering some personal data, such as your age, zip code, your claim-free years and the desired coverage, the comparison can begin. You will then get a handy overview of all car insurance policies that meet your criteria. This allows you to easily compare different insurer. Above all, compare the terms and conditions of the car insurance policies. This way you can be sure that you are properly insured in all situations!
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