When you decide to go live in Portugal with your vehicle, then the question of car insurance arises at a given moment. Although Portugal is a European country and the rules of car insurance are generally similar to other countries, Portuguese insurance has a way of operating, insurance policies and covers of your car that differ and are unique. Indeed, the third-party car insurance or all risks have each advantages and disadvantages that should be weighed before choosing car insurance. Car insurance can offer several coverages, depending on the budget and the risks you want to take care of. There are two types of motor insurance: car liability insurance and all-risk insurance. What are the differences between motor insurance against third parties and comprehensive insurance in Portugal ? What type of insurance to choose ? Lisbob, the expatriate assistant in Portugal, tells you everything about third-party car insurance and all risks.
Insurance against third-parties
Of the two types of existing car insurance in Portugal, the most basic coverage is motor vehicle liability insurance. This is commonly called third-party insurance and is mandatory under the Compulsory Motor Vehicle Liability Insurance Scheme (Legislative Decree No. 291/2007 of 21 August 2007).
What does third-party insurance cover in Portugal ?
Third-party car insurance includes:
• Material and personal damage to a third party ;
• Damage to persons transported.
Third-party car insurance also includes :
• Payment of compensation due in case of theft, theft, use of the vehicle and traffic accidents caused by fraud ;
• Replacement vehicle, from the date on which the insurer assumes full responsibility for the reimbursement of damages.
What is not covered by car liability insurance?
Car insurance against third parties does not include :
• Bodily injury sustained by the driver;
• Damage to the vehicle;
• Material damage caused to the policyholder;
• Property damage to passengers transported in violation of the rules of the highway.
It is possible to subscribe to many additional coverages but know that they will make the insurance premium expensive. Additional coverages for compulsory third-party insurance are as follows :
• Insulating glass ;
• Fires ;
• Natural disasters ;
• Extended protection against theft ;
• Own damage.
Car insurance against all risks in Portugal is own damage insurance. Unlike the previous one, it covers the damage sustained in the vehicle, even if the driver is the cause of the accident. It also provides driver protection.
What does all-risk insurance include ?
Despite the name under which it is known, it is not true that this type of car insurance covers all risks. Its extent depends on the coverage chosen and actually contracted by the insured.
Because it is misleading, the term "all-risk motor insurance" cannot be used on the insurance market in Portugal. If you are interested in all-risk car insurance, look for "damage" insurance.
Car insurance with or without deductible
The franchise is a determining factor in the choice of a car insurance all risks. The deductible is the amount that the insured will have to pay to trigger the insurance. The lower the deductible, the higher the insurance premium, but less the costs incurred by the policyholder in the event of an accident.
What type of car insurance to choose in Portugal ?
It is not easy to choose your car insurance in Portugal. Indeed, every system, whether it is all risk or third party, understands its advantages and disadvantages.
Third-party insurance is compulsory insurance because it is cheaper than all-risk insurance.
All-risk insurance, although optional, is more suitable for those who own a new car and want more comprehensive coverage in Portugal.
Criteria to consider when choosing the type of car insurance
When choosing the type of car insurance in Portugal, account should be taken of factors such as the useful life of the vehicle, the price of the vehicle in the used market, the robustness of the car in the event of an impact, kilometers already traveled or the type of use of the vehicle.
It is best to think about whether it would be worthwhile to invest in more expensive insurance but be more relaxed in the event of an accident. Do not underestimate unpredictable scenarios, such as the fall of a tree due to a storm or the isolated break of a window.