When buying a car, you must have a car insurance. But which should you choose? In Denmark, it is compulsory to insure your car with liability insurance.
The insurance covers the damage you may cause to others with your car. Be it if you are involved in a car accident that you can be held responsible for, or if you crash into a person or thing.
Liability insurance is mandatory
The statutory liability insurance only covers damage to others. It therefore does not cover damage to you or your car that you may cause yourself. If others are at fault for you or your car, it is their liability insurance that covers.
If you drive in a car without liability insurance and are stopped by the police, you will not be allowed to drive on, and the fine is 1000 USD. You will also be liable if you are guilty of harm to others. In Denmark it is illegal to drive in a car that is not insured.
Need additional coverage?
If you want the insurance to also cover damage to you and your car that you are causing yourself, you must have a life insurance policy.
This may be especially necessary if you are dependent on your car e.g. to look after your work or if you can’t afford to repair expensive damage or buy a new car should the accident occur. The hull insurance can also cover in the event of theft or injury, where the car is damaged as a result of e.g. stonework, fallen branches, fire, short circuit and cloudburst.
As a rule of thumb
A hull insurance costs 50% more than a liability insurance. However, it varies widely and depends on the insurance company and the customer. Young people usually pay the most, just as new cars are more expensive to insure than old ones.
Many insurance companies also offer partial insurance, for example. covers personal injury but not the car. This may be a good idea if you are driving in an old car, but would still like to insure yourself and your family should the accident occur.