Why prefer wider insurance coverage to the most affordable protection?
20.11.2018

Vehicle damage is very frequent compared to other types of insurance. The number of vehicles in our traffic continues to grow, and congestion and a lack of parking spaces is becoming a common phenomenon. New roads and traffic junctions maintained in good condition help to reduce traffic jams and the likelihood of road accidents, but, unfortunately, accidents also occur in the smoothest traffic when one changes lanes or overtakes other vehicles.

There may be a number of reasons, from haste to gadget-related distraction of attention. Therefore, regardless of the reasons or the number of road repairs, it is natural that traffic accidents still occur on a daily basis and unexpectedly.

Even the smallest insured event creates additional costs, whether it is the replacement of a damaged part, the time expense, or one’s personal re-arrangement until the pre-accident situation has been restored. In the event of vehicle damage, it is possible to take the costs directly attributable to the vehicle into account, but the related inconvenience should not be overlooked. In the event of an accident, the daily routines and activities are inevitably disturbed as one needs time to register an insured event, to deal with the repair, and in the worst case, to find an alternative means of transport for the period when the vehicle is unusable. It is more difficult to price such costs, and often they are only considered once the insured event has already taken place.

80% of the insured events are such where the vehicle is damaged and then needs repairs. At first glance, it is hard to imagine how much this will affect the pace of life and daily obligations. If the vehicle body is damaged as a result of a collision and needs repairs, it usually takes 3 days. In the case of more serious damage, the waiting time for repair and spare parts could be several weeks. While the car itself can be restored to a good condition, in the meantime the owner is forced to be without a car for anywhere from 3 days to several weeks. For people who are accustomed to driving from one place to another it may be inconvenient to use public transport during this period. This is especially true if work is mobile, far from home or if you need to drive the children to practice. What at first seems like a short period of time could become a complex logistical task because of outstanding commitments and trips. The nature of 20% of traffic accidents is more serious. In the case when restoration is not financially feasible, the customer needs assurance that the balance of the lease contract does not exceed the market price of the vehicle that is being compensated. In the case of more serious damage, additional risks should also be taken into account. If the customer loses the ability to work for a few months after a traffic accident, the payment of lease payments may be complicated for a limited period.

In summary, for all insured events, account must be taken of the hidden costs that may be excluded from the protection list when choosing the insurance package at first glance, but if real damage occurs, they help to greatly alleviate the situation. Therefore, a broader insurance protection solution should be preferred precisely because the 5 or 15 euros per month that you spend today can save you thousands of euros in the case of an insured event and help to reduce the impact of the insured event on everyday activities.

In cooperation with Compensa, LHV has developed a special insurance solution for lease customers that offers the best and comprehensive insurance coverage. In addition to the replacement car or lease value protection, situations where the customer cannot make lease payments after the insured event are also considered. It is also guaranteed that the vehicle is repaired using the knowledge and experience of the dealer of the respective brand, as well as the manufacturer’s instructions. In the case of total write-off of the vehicle, LHV Superkasko guarantees compensation of the acquisition cost of the vehicle within 6 months from the date of entering into the lease contract. In this way, LHV Superkasko ensures that daily life activities can also continue in the most convenient way after the insured event.  

A more detailed overview of the available LHV vehicle insurance products is available at www.lhv.ee/en/leasing.