The main purpose of automobile insurance is to repair the vehicle or compensate the insured party in the event of accidental damage caused to their own or third party vehicles.
The main coverage consists of insuring damages caused to third parties in the use of the vehicle (automobile civil liability or third-party liability). In Spain, all owners of motor vehicles are obliged to take out insurance for each vehicle they own.
When taking out compulsory civil liability insurance, the policyholder and the insurer may include in the same policy the coverage freely agreed upon between the policyholder and the insurer.
The most common supplementary coverages includes:
- Supplementary civil liability.
- Own damage and fire.
- Theft of the insured vehicle.
- Breakage of the vehicle’s windshield and windows.
- Personal accident cover for the occupants of the insured vehicle.
- Travel Insurance.
- Benefits in case of loss of driving license.
- Replacement of the insured vehicle.