Is auto insurance mandatory?
The law requires all motorists to be insured under what is commonly known as “civil liability”.
Car Insurance guarantees the compensation for car accident and emergency coverage that could be caused to third parties by the driver of the car or by its passengers during an accident. An auto insurance policy may be limited to this simple warranty, or include other warranties.
What is liability insurance?
The “civil liability” insurance guarantees the compensation for material and bodily injury caused to others by the driver of the car or by his passengers during an accident.
Designed to allow road accident victims to be always and properly compensated, liability insurance is mandatory for all motorists, and is therefore included in any auto insurance policy.
Third-party auto insurance and all-risk auto insurance
As a minimum, all drivers must be insured for bodily injury and property damage caused to third parties by the insured vehicle (articles 211-1 and 211-5 of the Insurance Code).
This mandatory minimum insurance is called “third party” insurance.
The “all risks” insurance includes more extensive guarantees and cover in particular the damages caused to your car, whoever is responsible for it, even if it is the driver (except in general in case of driving in case of intoxication) and even if the manager is not identified (in case of vandalism, for example).
The “all risks” auto insurance therefore provides better compensation than “third party” auto insurance.
What is an information statement?
It is a document that traces the past of a person as an insured. It contains the following information:
– the designated usual driver (s),
– the number, nature and responsibility of the registered claims,
– the identity of the driver responsible and finally the reduction-surcharge coefficient ( Bonus) .
The insurer is obliged to issue an information statement to an insured person when the auto insurance contract is terminated.