What does mandatory car insurance cover?


Do you want to know what compulsory car insurance covers? In what situations does he not take charge? Why is it necessary to subscribe? In the next post, we will tell you in detail all the information you need. Here you have all the answers to your questions.

What is mandatory car insurance?

The Compulsory Subscription Civil Liability Insurance, which we usually call ” compulsory insurance, “is an insurance product whose contracting is essential by law for anyone who has a private vehicle in their name, regardless of the frequency with which it is purchased. Use. Then we will see in-depth what the compulsory insurance of a car covers, but we advance that it only includes the basic coverage to be able to move with it.

Why take out compulsory car insurance?

The compulsory nature of its contracting is not capricious since it mainly serves to protect other drivers, pedestrians, and vehicles. We will delve a little deeper into what compulsory car deductible insurance includes -and its exclusions- in order to better understand its reason for being.

Compulsory car insurance coverage

Let’s see what compulsory car insurance covers, the most basic of the products in the industry.

It is responsible for the economic repair of the damages that a driver may cause due to a traffic accident. In this way, it facilitates that those affected receive their corresponding compensation; and not only the pedestrians or those traveling in another car, but the rest of the occupants of the vehicle itself. It also covers damage caused on public roads, such as a smashed traffic signal or broken glass in an establishment at street level.

In any case, the amount of compensation, even though it is very large, is not unlimited as it has some economic margins. Spanish regulations establish liability of up to 70 million euros per claim in the case of personal injury and up to 15 million in regard to damage to property, those caused to animals or things.

Voluntary civil liability coverage optionally contracted in third-party insurance allows the monetary limits to be extended for both types of risks, personal and material, and is useful when the maximum amount required by law is insufficient to repair the damage—caused or the legal obligations derived from it.

What does mandatory car insurance not cover?

To know what compulsory car insurance covers, it also helps to know in what situations it does not. We refer to the famous exclusions, which in some cases are obvious, but in others, they are not so.  

We mentioned before that third-party insurance also covers damage to the occupants of the vehicle that causes an accident, but on the other hand, it does not cover damage caused to their property in the case of close relatives of the driver, family members up to the third degree of consanguinity.

There are several more cases in which compulsory car insurance does not cover the driver -as, incidentally, neither would an all-risk insurance policy-: in the event that the driver has caused an accident while intoxicated or under the influence of any drugs, if you have made any illegal modifications to the vehicle, or if you have made any major changes that have not been disclosed.

In these cases, the insurance company will initially pay for the compensation to the injured parties, but later it will pass on the cost to the insured person covered by what is known as the right of repetition. This prevents the just from paying for sinners while maintaining compensation to the injured party.

Let’s imagine, finally, that we have an accident with a vehicle that circulates without insurance. In this case, as there is no insurance company to cover the damage caused, the Insurance Compensation Consortium would intervene,  which would be responsible for compensating the injured parties and then would be responsible for demanding the amount of compensation paid from the driver. 

Is it necessary to insure my car if I don’t use it?

The clear answer, as we advanced above, is yes. Every motor vehicle that has regular parking in Spain is required by law to be insured – even if it is only through the minimum coverage of the compulsory civil liability insurance – even if it was always parked and we did not use it.

A car has regular parking in Spain when it has a Spanish license plate; its user is domiciled in our country or, despite not being registered, carries a badge or plate indicating that it has been issued here. Breaking the rule and driving a car without compulsory insurance can result in a fine of between 600 and 3,000 euros depending on the type of vehicle, the seriousness of the incident, and the possible situation of recidivism, in addition to the immobilization of the car.

By aamritri

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