When to insure all risk?

A car is incredibly convenient, and it can also be a real bummer when it can no longer get you from A to B. You were on your way to an important appointment, but are on the side of the road because you had a collision or accident. Fortunately you yourself are unharmed, only your car has sustained considerable damage. In addition to all the stress it causes at the time, it can also cause financial stress later on. Your car can no longer be driven and you have to have it towed away by roadside assistance to a garage. Then later you get a call that your car has been declared a total loss by the garage. So you will have to buy a completely new car and your own car is beyond repair. For such cases, do you want to reduce your financial risks? Then read on to find out when it is wise to insure your car all-risk.

What does all-risk insurance cover?

An all-risk car insurance policy is also called a third-party full hull policy. Within this insurance, not only is damage you cause to others and damage due to force majeure covered, but also damage you cause yourself is covered by the insurer. What is another great additional benefit of all-risk insurance is that insurers will pay out the new value of your car for the first 1 to 3 years. Is your car declared totaled after a major accident? Then you don’t just lose the value of your car in one fell swoop. The current value of your car is still high in the first year that you take out the insurance, after this the value of your car decreases and, if your car is declared total loss, only the current value will be paid out. Furthermore, damage due to theft and intentional vandalism is also covered by an all-risk insurance policy. No matter how well you lock your car, you never know someone else’s intention!

When do you take out all-risk insurance for your car?

When you have just bought a new car it is still worth a lot of money and an accident can be in a small corner. So in such a case, it is smart to take out an all-risk car insurance policy. In general, you are advised to insure new cars up to 6 years or so all-risk. After this you can switch to a WA+ (limited hull) or a WA insurance. Do you have a leased car? Then it’s even smarter to take out all-risk insurance for your car. Should your leased car be declared a total loss, you will still have to pay off your loan without all-risk car insurance. Even though all-risk insurance is the most expensive option for your car, you can save on it. Premiums can still vary quite a bit from one insurer to another. So it’s smart to search the internet for “cost all risk insurance” to get a good idea of this!