When it comes to liability insurance
Anyone who already owns or has owned a vehicle knows what I’m talking about. Sometimes it is also referred to as motor vehicle liability insurance, or as statutory vehicle insurance. Taking out this insurance is required by law, and soon the range of vehicles that must have it will be expanded to include, for example, segways, electric scooters or motorized golf carts.
What does it protect you from?
Compulsory liability protects you from the financial consequences of damages that you cause to someone else by operating a vehicle. In practice, it looks like, for example, that if you cause an accident in which a third party’s health is harmed and their vehicle is damaged, if you have compulsory insurance, your insurance company covers the damage. However, it no longer applies to damages that you incur. Motor vehicle liability insurance covers:
- Damage to health and life
- Property damage
- Damages in the nature of lost profits
- The cost of removing the accident
- Costs of legal representation in connection with the application of a liability claim.
How is the premium for liability insurance calculated?
It is not difficult to take out liability insurance, you can do it both at the branch, and even better online, from the comfort of your home. But choosing the right fuse is a bit more complicated. Many of us orient ourselves only by price, but other parameters need to be taken into account, for example the amount of insurance limits. The standard is currently 35 million crowns for damage to health and 35 million crowns for damage to property, from December 2023 both will increase to 50 million crowns. Reason? These limits are not always sufficient, so it is recommended to set a higher limit.
But it is also connected with it price insurance. The higher the limit you set, the more your insurance costs. But saving on the limits is not worth it if they are not enough, you will pay the difference out of your own pocket. And that it can easily go to millions.
Limits are not the only factor that affects the price of insurance
The price of the insurance premium also depends on other parameters, namely those related to you and the vehicle itself. The following plays a role in the calculation:
- The age of the policyholderbecause young drivers cause accidents more often than older ones.
- Residence of the driverbecause the accident rate is higher in larger cities than, for example, in the countryside.
- Number of bonus months, i.e. the months after which you have compulsory insurance and drive without an accident. The longer this period is, the cheaper the premium you can get. But don’t worry even if you have been driving without accidents for many years and now you caused one a few months ago. The bonus is reduced for each accident by 24-36 months depending on the insurance company, you do not automatically start again from scratch.
- Technical parameters vehicle, for example engine power and volume, vehicle weight, its age, number of doors, type of fuel, etc.
- Vehicle use – is it a vehicle for private or business use?