What is the difference between an All Risk and Total Loss insurance?


In this post we will evaluate the differences between two coverages that, despite appearing similar, are not.

Total loss insurance coverage covers damages caused to third parties (outside and inside the vehicle, when SOAT coverage is not sufficient) in an accident, which is known as civil liability, and also covers the total replacement of the vehicle in case it is stolen or damaged and the cost of its repair is greater than the sum insured assigned by the company.

The insured amount is the maximum amount

The insured amount is the maximum amount

That the insurer will indemnify for theft, loss or damage to the vehicle. For example, if the car is worth $ 10,000, the commercial value or the insured amount is equivalent to 80% and the repair costs $ 8500, we see that the cost of the car is greater than the sum insured, which is $ 8000, so it is considered total loss. In this case, the insurer will deliver the commercial value or the sum insured agreed for the driver to acquire a new vehicle.

The coverage of All Risk insurance covers the damages caused to third parties in an accident (when the SOAT coverage is not sufficient), the total loss coverage and also, the damages that the car suffers to different accidents (moons breaking, theft of tires, kneading the chassis, etc.), that is, it covers the costs of its repair or partial replacement. It should be noted that not all insurers cover the same things.

The difference between the two is that

money cash

As we can see, all risk coverage is broader since it protects the vehicle against practically everything that can happen to it, including its replacement. All always subject to the values ​​and clauses established by the insurers in the contract.

Choosing vehicle insurance is to protect our investment, so it is essential to inform and decide well. Now you know something else about the coverage of the different insurances. Using the Oliver Twist.com comparator , you can check the benefits offered by the insurers in the market, compare prices and request the best option from the same page.

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