Third-Party Insurance or Comprehensive Insurance: Which to Choose

A couple compare third-party and own-damage insurance with an adviser whilst standing next to their car

Compulsory insurance protects third parties, but does not automatically cover damage to your own car when you are responsible for the accident. Before choosing a policy based solely on price, compare the value of your car, your ability to afford repairs, and the cover you actually need.

Compare your car insurance with CJ Seguros

  • Compulsory third-party liability or own damage
  • Analysis of excesses, deductibles and exclusions
  • Comparison of various insurers
  • Free, no-obligation simulation

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What is the difference between third-party insurance and own damage insurance?

Third-party motor insurance is compulsory and compensates third parties for covered damages when your vehicle is at fault. Cover for damage to your own vehicle is optional and can protect your car in situations specified in the policy, such as a crash, collision, rollover, fire, theft, vandalism or natural disasters.

Who should consider taking out cover for own damage?

It makes sense to consider this option if your car is new, has a high value, was bought on finance, or if a major repair would have an impact you would find difficult to bear. Your decision depends on the value of the vehicle, the cost of the insurance and the specific terms of the policy.

What you should compare before making your choice

Risks effectively covered

Not all own damage policies cover the same incidents. Check whether the policy covers collision, theft, fire, vandalism, natural disasters, glass breakage and a replacement vehicle.

Applicable excess

The excess is the portion of the loss that you are responsible for in the situations set out in the contract. A higher excess may reduce the premium, but it increases the amount you will have to pay if a covered claim arises.

Vehicle capital and value

Check the sum insured, the depreciation table and how the compensation is calculated in the event of a total loss. The lowest price may conceal a lower sum insured or less favourable cover.

The benefits of comparing cover, not just prices

Avoiding false equivalences

Two policies may use similar names but have different excesses, limits, exclusions or assistance services.

Adjust the cover to the car’s actual value

See also the page on Car Insurance to find out about the main types of cover available.

How much does it cost to add own damage cover?

There is no single figure. The premium varies depending on your car, your age and driving experience, your claims history, where you live, how you use the car, the cover you choose and your excess. When comparing quotes, you should take into account the difference in price and the financial loss you would have to bear without this cover.

What is the most appropriate solution for each situation?

New or high-value car

Cover for own damage warrants careful consideration, particularly if you are unable to replace or repair your vehicle without affecting your household budget.

The oldest, low-value car

It may make more sense to take out additional cover for breakdown, passenger cover, windscreen cover, theft or fire, rather than taking out all types of cover. Compare the annual premium with your car’s market value.

Car on finance

Check the cover required under your finance agreement and make sure the loan amount keeps pace with changes in the value of your vehicle.

Why choose CJ Seguros?

  • Comparison of various insurance companies;
  • Review of excesses and exclusions;
  • Advice tailored to the value of the car;
  • Support throughout the policy term and in the event of a claim.

Frequently Asked Questions about third-party and own damage insurance

Is there really such a thing as all-risk insurance?

No. The expression is used informally, but all policies have cover, limits, excesses and exclusions. The correct term is insurance with cover for own damage.

Does my own damage cover the cost of repairing my car in all cases?

Only when the incident is covered and the terms of the policy are met. You may be liable for the excess and other limitations.

Send us your current policy. CJ Seguros will compare prices, cover, excesses and sum insured before presenting you with an alternative.

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