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Comprehensive Vehicle Insurance


and an ITV test would have revealed this. In this case, the insurance company may rule that the vehicle was seriously defective, or unroadworthy, so is not covered.

n Spain there are 24.5 million vehicles with insurance and 30% have “comprehensive” cover, also known as “all risks”. For these 30% there are some situations where the insurance company will not pay out. Some are obvious, but others are not. If a driver causes an accident and is found to be under the influence of alcohol or drugs any insurance cover is invalid, and also if a driver has lost their licence but continues to drive. This can have very serious consequences if there is injury or death as this will not be covered either. Insurance companies are unlikely to pay out if, at the time of an accident, there are more than the legal number of passengers. This will normally be five people including the driver, who all have seat belts, or up to seven in larger vehicles. Insurance premiums have to be paid on time, or within a certain “grace” period. Outside this period the insurance is not in force. Insurance companies are on their guard if the insured person has an accident with no other vehicle involved. If the accident causes major damage, they want to make sure that this was not intentional, just so a claim can be made. Similarly, in a collision where two or more family members are making separate claims, they want to ensure that these are not fraudulent. This may also apply where work colleagues are making claims. The cost of an insurance policy for a young person can be very expensive and, if they drive a vehicle insured by someone else, they need to be a named driver. If not, the company (who have been paid a reduced premium) may decline to settle any claims. Vehicles in Spain, after a set time period, have to have a current ITV (MOT) document, that shows the vehicle has been tested at the required intervals. In major accidents where there is no current ITV the insurance assessor who comes to look at the damage, may decide the vehicle has serious defects that have caused the accident,

If people take their vehicles on a ferry they are not normally covered by their insurance company as the ferry operator has to have insurance to cover loss or damage. A grey area is if the vehicle is in a designated parking area prior to boarding and there is an accident there. 4 x 4 vehicles and those capable of going off road, may not be fully insured if they do this, and drivers should check the conditions of their policies if they regularly go off road. In the case of an accident, an insurance company may not provide normal road-side assistance to transport the vehicle to a garage, and they may look carefully at any claim for damage. An additional premium may be necessary in cases such as this. In the event of an accident drivers are obliged to render assistance to anyone who is injured whilst the emergency services come to the scene. If a driver involved drives off without rendering assistance, an insurance company may decline to pay out for any damage, as this is a criminal offence. In “acts of god” such as severe flooding, earthquakes or the volcano eruption, the insurance company will not pay out, but a small part of every insurance premium goes to fund a National Insurance Consortium, who will process these claims and pay.


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