All-risk or third-party car insurance: which to choose?

Assurance auto tous risques ou au tiers

The differences between third-party car insurance and all-risk insurance concern their coverage and the price. Which of these insurances should be preferred? How to choose according to your budget and your needs? Here are the answers.

Car insurance is compulsory in France. It is strictly forbidden to drive without auto cover. Any breach of this obligation is considered an offense and is liable to a fine of up to €3,750. With this in mind, a driver can, depending on the vehicle he owns, opt either for a third party car insuranceor for a Back to back insurance.

However, it is difficult for some to find themselves between these two insurance formulas. The insured must take into account a few essential parameters in order to properly insure his person and his vehicle. To do this, insurance companies offer offers adapted to the types of vehicles and the budgets of their owners. Of the two types of insurance mentioned above, which one to choose? The answer and more below.

Difference between all-risk insurance and third-party car insurance

From their definitions, differences between third-party car insurance and all-risk insurance clearly emerge.

Third-party car insurance still called public liability is the mandatory minimum in terms ofCar Insurance in France. This offer therefore provides protection or minimum vehicle owner coverage.

All-risk car insurance as for her is formula that covers the driver and his vehicle to the greatest extent. The driver is always compensatedwhether he is responsible for the accident or not, whether the car is in circulation or stationary.

It is clear from these two definitions that third-party car insurance has differences from all-risk insurance. The first difference is the coverage level offered by each insurance and the second difference is their price.

Third-party and all-risk car insurance: coverage

Let’s now find out what each of the two insurance formulas concerned in this text really covers.

What does third-party auto insurance cover?

Third-party auto insurance is the legal and mandatory minimum coverage : civil liability. As her name suggests, she only covers damage caused to a third party (third-party vehicle and its owner). Any damage suffered by the owner responsible for the loss or by his vehicle is not covered under this insurance.

It should therefore be remembered that if you are responsible for any accident on a vehicle (bicycle, car, motorcycle, etc.) or on its owner, even if you have been injured, your third-party car insurance will only cover the vehicle and the affected owner during the accident. This insurance is cheapbecause it offers the minimum coverage (material damage and bodily injury).

What does all-risk car insurance cover?

All-risk car insurance offers a extensive coverage and warranty. She covers not only the owner responsible for the accident or not, his vehicle as well as the owner and the victim vehicle. This insurance therefore adds broader guarantees to the civil liability.

Thus, when you opt for this insurance, it covers you and your vehicle in the event of vandalism, glass breakage, bodily injury suffered during the accident, theft, fire, storm, terrorism and attacks, technological and natural disasters, etc. It should be noted thatit is possible to add a particular option (or several options) to the contract to have all-risk insurance adapted to your needs. The price of this insurance is naturally high unlike its sister. This is the price to pay for driving with complete peace of mind.

Intermediate insurance between third-party car insurance and all-risks: third-party insurance plus

Since third-party insurance is really simplistic and minimalist, a formula has been devised to add additional guarantees. This solution is called third-party plus or intermediary insurance. A driver can subscribe to its civil liability and add some additional guarantees. In this logic, it is for example possible to have third-party theft and fire insurance. This solution is of course less expensive than comprehensive insurance.

car insurance contract

SEE ALSO: What are the effects of the malus on your car insurance?

How to choose between third-party car insurance and all-risk insurance?

Each of these insurances is adapted to very specific situations. So, deciding to choose one over the other depends on several elements: the type of vehicle, its use, its mileage and the needs of the driver.

The type of vehicle

Before taking out insurance, you must first consider the type of vehicle you drive. Is it new or old? The more expensive the vehicle, the more expensive the chosen insurance must be.. For example, you should not take out third-party insurance for a new vehicle for which you have not yet fully paid the loan contracted for its purchase. In this case, a Back to back insurance is fully indicated.

On the other hand, it is wiser to opt for a third-party or intermediary car insurance for a old vehicle for example (except collector’s vehicles, top-of-the-range vehicles and those expensive to repair), in order to avoid having insurance that exceeds its value. Some insurers advise avoiding this insurance for vehicles over 8 years old, because at this age, the value of the vehicle has dropped considerably.

ℹ️ Also note this: it is never profitable to take out all-risk car insurance for a vehicle in poor condition (eg with scratches).

Vehicle use

How often do you use your vehicle? The more it is used, the higher the cost of its insurance should be.. Prefer all-risk insurance for a vehicle that is used frequently. There are fewer risks to cover on a vehicle that is little or not used. In the latter case, third-party car insurance or third-party car plus is indicated.

Vehicle mileage

how many kilometers is displayed on the odometer of your car? The higher the mileage, the lower the value of the vehicle. As a driver, you can check the value of the vehicle by referring to the argus. The age of a car is not necessarily linked to its mileage. A 4-year-old car, for example, can display 55,000 kilometers on the odometer (low mileage). Whatever, for low mileage, all-risk car insurance is recommended. Otherwise, simple third-party insurance or more (intermediary) are better suited.

Driver’s needs

The driver can find in all-risk insurance a perfect response to his needs. There is no longer any question of hesitating to contract it in this case. On the other hand, if he is only interested in a few options, he can take out third-party plus insurance.

SEE ALSO: What is temporary auto insurance?

Tips for choosing car insurance

Here are some practical tips to help you choose the right car insurance.

  • Determine the value of your vehicle : elements such as the age of the vehicle, its mileage, its condition help to determine its value. Auto insurance must be proportional to the value of the vehicle. The higher the value, the higher the coverage should be and vice versa.
  • Determine the frequency of use and mileage for the year : the more the vehicle is used, the higher the cover must be. For example, it is useless to take out high coverage for a car that is left in the garage.
  • Determine the potential users of the vehicle : when more than one person uses the vehicle, it is advisable to take out all-risk insurance with additional “loan at the wheel” guarantee.
  • Determine vehicle options : when the car has several options, all-risk car insurance is indicated.
  • Set your budget : how much are you willing to spend on your car cover? Depending on your budget, adopt more or less expensive coverage.
  • Determine your needs : you can opt according to your needs and your situation for an adapted car insurance. For example, if you live in an area prone to theft or bad weather, third-party plus insurance may be appropriate.
  • Consider your car loan : comprehensive insurance is essential in this case.

From all this analysis, it emerges that of the two types of insurance (third-party car insurance and all-risk car insurance), no formula can be described as better than the other. The choice depends on several constraints specific to the driver and to the vehicle itself, as we mentioned above.

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