Car insurance

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You should have a valid motor insurance contract in order to drive a car. In addition to the compulsory motor insurance contract, you can also sign an additional motor own damage insurance contract or voluntary motor vehicle insurance contract.

Compulsory motor insurance is a liability insurance. This means that the person to whom you as a policyholder have caused damage will receive compensation (to cover medical expenses or vehicle repair).

The goal of voluntary motor vehicle insurance or motor own damage insurance is to cover the damages incurred by your vehicle. The damages may have been caused by theft, vandalism, accident etc. In the case of a traffic accident, remember that you will receive compensation even if you caused the accident.

You can insure your vehicle at an insurance undertaking or by using the help of an insurance broker or agent. If you are getting a car on a lease, remember that the lease provider may offer you a chance to get vehicle insurance from a certain insurer that they recommend, but this may not be the most beneficial option for you. You can choose the insurer who suits you best on your own.

The cost of motor insurance depends, among other things, on the function of the vehicle, its technical qualities, where you use it and what is your previous history of insurance and damages.

The terms and conditions of compulsory motor insurance are included in the Motor Insurance Act.

Prior to concluding a motor own damage contract
  • think about against which risks do you want your vehicle to be covered;
  • take enough time to browse different offers and to select a solution that best suits your needs;
  • notify the insurer of all circumstances that may be important and might affect damage claims (e.g. the technical state of your vehicle);
  • make sure you are well aware of the typical conditions of an insurance contract;
  • check what are the exceptions of motor own damage insurance, or the damages that will not be compensated;
  • find out how big is your own liability or the sum agreed with the insurer, which you will be required to pay in the case of a loss event;
  • learn about the safety requirements that you have to comply with, and your other commitments as a policyholder;
  • make sure you know how to notify the insurance undertaking of insured events, which documents you should provide, and how the compensation of losses will be conducted;
  • remember that you are required to get a motor own damage insurance when leasing a car.

If something happens to your vehicle, notify your insurer immediately; they will provide you with information about how to proceed. If you fail to do so, the insurer has the right to reduce compensation or refuse paying it completely.

Always keep your insurance policy accessible as you can use it to find necessary contact information.

The amount of compensatory damages to be awarded should be assessed by the insurer immediately. In order to do so, they have the right to ask for additional information about the insured event and additional documents, if necessary.

There are several ways to compensate damages. The insurer may pay the market value of the vehicle (the local average sales price of the damaged item at the time of the loss event), or cover the restoration costs of the vehicle.

The insurer is generally required to compensate traffic damage to you immediately, but not later than 30 days after the notification of the insured event.

The webpage Minuraha.ee was used, among other sources, to compile this material.