When buying or leasing a car, the value of the vehicle should be an important indicator of your choice of car insurance. Replacement value or purchase value guarantee will offer you the best compensation in the event of a claim. How to ensure your new or recent vehicle? Which guarantee should I choose to obtain a replacement? What criteria should be taken into account? We accompany you in your reflections.
Summary:
- New or recent vehicle: how to insure it properly?
- Rental or purchase on credit: how to insure a new or recent vehicle?
- Replacement value or purchase value guarantee: high-level insurance for better protection
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| How to Properly Insurance a New or Recent Vehicle Purchased or Rented? |
New or recent vehicle: how to insure it properly?
As soon as the vehicle is new or recent, it is advisable to opt for all-risk car insurance. Arbitration on the level of all-risk cover is made on a case-by-case basis, based on two criteria:
- The value of the vehicle:
Insuring a recent small city car for 9,000 euros is obviously not the same thing as insuring a brand new model purchased for 50,000 euros. The more valuable the vehicle, the more its owner has an interest in beefing up his insurance contract to be well compensated in the event of a claim.
- The ability of the owner to meet the costs caused by a claim:
Will his finances allow him to complete the compensation paid by the insurer to re-equip himself, if the vehicle is irreparable following an accident or stolen? The question arises in particular if it was purchased on credit, because who says credit says ready to repay each month. In the event of a constrained budget, it is preferable to opt for protective guarantees.
Rental or purchase on credit: how to insure a new or recent vehicle?
All-risk insurance is recommended in all situations.
Choosing to buy your car on leasing either in long-term rental (LLD) or in rental with option to purchase (LOA), does not exempt you from the obligation to insure it.
Whatever the method of financing your car (leasing or credit), it is advisable to take out all-risk insurance. Indeed, in the event of the destruction or theft of the vehicle, you will have to reimburse the value of the car to the financing company.
You will also have to pay ancillary costs such as prepayment penalties. This is the purpose of the financial loss guarantees offered by rental companies.
- The case of the electric car with battery rental
A special case of the purchase of an electric car with rental of the battery. It is advisable to take out all-risk insurance because you will have to re-equip yourself and reimburse the battery. Read the rental agreement carefully to find out what the insurance covers in the event of damage.
Replacement value or purchase value guarantee: high-level insurance for better protection
The terms of compensation vary depending on your level of coverage. Depending on the level of all-risk cover chosen, there are different compensation methods:
- Replacement value guarantee:
The owner of the vehicle is reimbursed at the selling price of the vehicle which appears in the manufacturer's catalog.
- Purchase value guarantee:
The compensation corresponds to the price actually paid for the acquisition of the vehicle (the one appearing on the purchase invoice).
- Replacement value according to expert opinion (VRADE ):
The amount of compensation is calculated by an expert appointed by the insurer, who estimates the replacement value of the vehicle on the day of the accident
- High-level all-risk insurance offers you the best protection:
The more recent or expensive the vehicle, or if it is purchased on credit or leased, it is advisable to take out high-level all-risk insurance (with a replacement value or purchase value guarantee). This will allow you to re-equip yourself or reimburse the financing organization, including ancillary costs (which exempts you from taking out financial loss cover).
Do you want to use a car insurance comparator to study the different offers? Be aware that the price should not be the only criterion of comparison, analyze the guarantees offered as well as the value of your vehicle and your ability to repair it in the event of an accident.
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