What is third-party car insurance?
Motor third-party liability (or “RC auto”) insurance covers damage that the driver may cause to third parties in the event of an accident, whether the damage is material (such as a damaged vehicle or broken fence) or bodily (injuries to pedestrians, cyclists or other motorists). The main aim is to guarantee compensation to injured third parties, without the driver having to bear the cost of repairs or care.
This insurance is mandatory in Switzerland and is one of the conditions for obtaining a license plate and be able to drive a vehicle on Swiss roads. Insurance companies inform the cantonal vehicle office of the validity of this insurance for each vehicle registered.
What liability insurance covers
Third-party liability insurance covers various aspects designed to provide financial protection for third parties injured in an accident. Here are the main benefits covered:
- Bodily injury : The insurance covers medical, hospitalization, rehabilitation and even disability costs for injured people. It also covers loss of income if the injured person is unable to work.
- Property damage : Repairs to any damaged object, whether another vehicle, infrastructure (barrier, lamppost, etc.) or a third party's personal items, are covered.
- Indirect economic damage : Sometimes the accident has economic consequences for the victim, such as the inability to generate income. Insurance may include compensation to offset these impacts.
Common exclusions
It is important to note that civil liability does not cover :
- Damage to the insured's own vehicle.
- Bodily injury to the driver responsible for the accident.
- Damage caused intentionally or by gross negligence (such as driving under the influence of alcohol in excess of the legal limit).
- Accidents occurring outside authorized situations (for example, if the vehicle is used for activities not covered by the policy).
To cover damage to your own vehicle, you can take out partial or full comprehensive insurance, in addition to your third-party liability insurance.
How is the insurance premium calculated?
The amount of the premium for liability insurance depends on a number of factors that enable the insurer to assess the risk represented by the insured:
- Driver's age and experience : Young drivers or newly licensed drivers may be charged a higher premium, as they are statistically more often involved in accidents.
- Type of vehicle : Powerful or expensive cars may represent an additional risk and have higher premiums.
- Driving history: A claims-free driver generally benefits from premium reductions, while a history of repeated claims can lead to higher costs.
The bonus-malus system
Swiss insurers use a bonus-malus system to encourage drivers to drive carefully. In the event of a claim, the driver's malus level may increase, resulting in a higher premium.
On the other hand, in the absence of claims over a prolonged period, the driver can benefit from progressive reductions, called bonus, on his insurance premium.
The benefits of motor liability insurance
In addition to its compulsory nature, this insurance offers considerable advantages:
- In the event of an at-fault accident, compensation costs can be very high. Civil liability protects the insured from heavy financial burdens.
- This insurance guarantees that accident victims will receive compensation for the damage they have suffered.
How to choose your liability insurance?
The choice of insurer can influence the quality of cover, the speed of compensation and the level of premiums. It is therefore advisable to compare several offers, taking different criteria into account:
- Coverage amounts : Although Swiss insurers generally offer high amounts of coverage, it's essential to make sure that the amounts offered meet your needs.
- Deductible options : Some policies offer deductibles that reduce the premium. However, in the event of an accident, you'll have to pay this deductible before the insurance will pay out.
- Support services : Additional services such as legal assistance or responsive customer service can also be decisive in the choice of insurer.
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