Everything you need to know about car insurance in Italy

by Adriana ruiz

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Car insurance in Italy is compulsory for all vehicles, whether they are in circulation or parked on public roads. This mandatory insurance, known as “Assicurazione RC” (Civil Liability Insurance), covers damages that the insured may cause to property or individuals.

To obtain an insurance contract, you’ll need the following documents: the car registration book in the name of the policyholder and an identity document for the insured person.

Let’s delve into the details of insurance policies and the additional coverages you can request to enhance your coverage.

The Limit of Coverage:

One important aspect of third-party motor liability insurance in Italy is that it has a maximum limit of coverage. This limit represents the maximum amount the insurance company will pay for damages caused by the insured to third parties. The basic coverage for third-party liability insurance is €6,450,000.00 for personal injury and €1,300,000.00 for property damage.

If the damage exceeds this coverage limit, the insured party is personally responsible for paying compensation for the excess damage. However, it’s possible to extend the maximum coverage to up to €10,000,000.00, depending on the insurance company. This extension provides greater guarantees in case of compensation claims, reducing the risk of having to pay for damages out of your pocket.

When purchasing an insurance contract, you can request to increase the coverage limit. This enhancement typically costs between €50 and €200.

The Deductible:

Insurance policies may include a deductible, which is an amount the insured must pay if they have caused damage to other vehicles due to an accident. There are two types of deductibles: relative and absolute.

Relative Deductible: With a relative deductible, your insurance company won’t compensate for damage up to a certain amount. For instance, if your insurance contract specifies a €1,000 deductible, and the damage caused amounts to €800, you will need to cover the €800 compensation yourself. However, if the damage reaches €1,500, it will be fully covered by your insurance company.

Absolute Deductible: The absolute deductible stipulates that the insured must pay a predetermined amount, regardless of whether it exceeds a certain threshold. For example, if you’ve caused €2,000 in damage, and your deductible is €1,000, you’ll still have to pay €1,000, with the remainder covered by your insurance company. Having a deductible can lead to a discount of around 15% on your annual premium, but it also means you may need to contribute to repair costs in the event of a fault.

Additional Coverages:
Italian car insurance policies offer various additional coverages, including:

Injuries to the Driver: This extension compensates for bodily injuries to the driver, even if they are at fault in the accident. The average cost is approximately €100.

Kasco: Kasco coverage provides compensation for damage to your vehicle, regardless of fault. It covers material damage to the vehicle, such as accidents involving other vehicles or collisions with objects. Costs vary based on the insured’s merit class.

Crystal Policy: This extension covers damage or breakage of your car’s windows, including the front windscreen, rear window, and door windows. Average cost: around €100.

Road Assistance: Roadside assistance allows you to call a tow truck at no extra cost in the event of a vehicle breakdown. Costs vary, with additional charges beyond a certain mileage.

Natural Events: This coverage insures your vehicle against damage caused by adverse natural conditions like storms, avalanches, and floods. Costs range from €80 to €150.

Vandalism: Vandalism coverage includes damage caused by unknown persons, acts of terrorism, or strikes. It covers both major and minor vehicle damage, with costs between €200 and €400.

Theft and Fire Insurance: This extension insures your vehicle against theft or fire damage, with compensation based on the vehicle’s value. Costs vary with the insured amount.

Legal Protection: Legal protection covers legal dispute costs, such as lawyers and expert opinions. The average cost is around €100 per year.

Waiver of Recourse: This unique extension covers damages even if they were caused under the influence of alcohol, drugs, or with an expired vehicle inspection. Costs range from €80 to €150 annually, in addition to the basic insurance premium.

 

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