Guide to understanding what all risk insurance is and why it is important for vehicle owners in Colombia

Inside 2022, situations such as the increase of dollarr, the claims, the logistics crisis, among other things, promoted an increase in the value of the vehicle insurance and several experts point out that while the deficit presented by the insurance sector it is very probable that the value of the policies will continue to increase for the following year.

To date, the growth of first and, according to the data of the Federation of Colombian Insurers (Fasecolda)between January and October they increased by 27.2% compared to the same period of the previous year, but this no longer represents insured vehiclesand it’s something the insurance union also discovered earlier this year, where another survey points to 16 million cars circulating in Colombia, only 16% have it all risk policy.

This situation generates uncertainty and makes many doubt whether or not to insure their vehicle. For the Executive Director of Segurocanguro.com, Martin Alvemothe answer is yes, as buying a car involves a investmentTherefore, a commitment to take care of them and take the necessary precautions before any accident occurs and affects the goods can be much more expensive.

“It is important to underline that all risk auto insurance covers damage caused to third parties, partial or total damage, partial or total theft of the vehicle itself. It also normally includes major assistance such as legal assistance, a tow truck, replacement vehicles and chosen driver, among other things,” Alvemo said.

According to data from this company, which analyzed the requests of over 1,000 people who purchased this type of insurance, most used the basic coverage in relation to damage to third parties, damage or theft of your vehicle in 2022.

While the most common events where you need to use this type of policy are in car accidents with other drivers, vehicles or vehicle parts (such as your computer) that have been stolen; vehicle liability, which in most cases occurs due to a cyclist or a dog on the road, damage to the vehicle due to public unrest or armed robbery in high-risk areas, among other factors.

For 2021 there was a death register on country roads due to vehicle accidents. Meanwhile, during the first half of the 2022 there was an increase of 19.22% compared to the same period of the previous year, which translates into 3,102 cases of deaths due to traffic accidents in the country, according to a report of the National Agency for Road Safety (ANSV).

To this we could add another situation that affects the majority of Colombians and it is the vehicle theft, in the capital of Colombia. For example, as of August 2022, 2,254 vehicleswhich resulted in the approximate theft of 10 cars a dayaccording to the figures of Bogota Security Secretariat.

Under these two situations, which do not decrease in the country, it should be noted that this type of insurance manages to cover, on the one hand, the civil liability of the vehicle; i.e. injury to third parties, damage to private property or cases of death which may occur at the time of an accident involving the car. And also, they have a warranty in case of theft of parts or when the forced disappearance of the car occurs.

Alvemo explained that there is often confusion between the coverage of an all risk insurance and that Compulsory Road Accident Insurance (Soat). However, it must be understood that the latter was designed to provide cover for victims of road accidents, but does not cover material damage, either your own or that of third parties.

That said, there are several keys to consider when acquiring all-risk insurance. Are the following:

– Use technology: there are more than 40 different insurance companies with 13 different insurers. Prices and coverages vary a lot from one product to another and, therefore, it is essential to take into account the comparative platforms to receive complete information that allows the owner to make a good decision.

– Buy in advance before a trip: It is important to note that the process of taking out insurance over Christmas and New Years is usually a bit longer, so it is important to take out insurance three to four days before the insurer is required to leave on your trip.

– Analyze the coverage offered: Given rising prices, it’s essential to look into how to get adequate coverage without making insurance so expensive. You can explore lower levels of harm to third parties. It is also possible to increase the deductibles a bit and perhaps buy 90% insurance instead of 100%.

– Pay in installments: the policy can also be easily funded to handle the monthly payment instead of an annual payment.

– Read the opinions of other users: Instead, it would be interesting to evaluate the opinions of customers who have had injuries and have made use of the policy. It is advisable to be guided by these opinions to choose an insurer who provides a good service.

This type of auto insurance can have many other covers and services, which should be explored and discussed with the advisor when purchasing this insurance, this is to give drivers and their families some peace of mind. hit the country roads.

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