The auto insurance, home insurance, are the two major insurance “father”. Anyone who uses a motor vehicle may effect: incur liability in causing injury to others, damaging the vehicle, suffered an injury.
Guarantees
A contract includes auto, almost always guarantees against any damage that may be caused by the use of a motor vehicle. These guarantees are of two kinds:

one mandatory, the security liability, the other optional warranty damage.

The owner of several vehicles must ensure for each. The auto insurance is linked to the vehicle and not the underwriter. The guarantee does not play if the driver was travelling without valid driving licence.

Thus, while motor insurance contract contains there a minimum guarantee liability. Most often, it also includes a property insurance on the automobile itself. The contract may also include a “guarantee of the driver.”

Guarantee RC mandatory
Any person (or entity other than the State), whose civil liability (RC) may be incurred as a result of damage suffered by third parties and resulting damage to persons or property in the achievement of which a motor vehicle is involved, must therefore, to move the vehicle, be covered by insurance guaranteeing that responsibility.

For the purposes of this provision, under the Insurance Code, members of the family of the driver or the insured are treated as third.

The security RC covers damage to third parties and passengers (but not the driver).

Guarantee damage optional
The vehicle itself can be assured. This insurance is optional, but essential especially for newer vehicles.

The collateral damage covers only damage to the vehicle. It is more or less scope:

“third collision”: playing only in the event of a collision with a third identified (vehicle, pedestrian, animal) and covering the damage directly caused by the collision and secondary damage, “all risks”: covering all the damage (collision or not) .

It may be supplemented by guarantees accessories covering various risks (fire, theft, broken windows, attacks, natural disasters, defense appeal, “individual incident” to the driver and passengers, assistance, etc.)..

Prime and bonus-malus
Insurers can freely determine their prices.

Generally speaking, the premium (in other words, the price of insurance) is calculated according to:

risks covered, vehicle (type and brand), its use (professional and / or private), area of residence and normal movement, the driver (age, sex, length of driving licences, the social group .. .).
According to the history of the driver, applies a “multiplier” of the premium, coefficient:

Reduction ( “bonus”) of 5% for each year without an accident (0.5 minimum) or increase ( “penalty”), 25% for each accident for which the insured is responsible (3.5 maximum ).

This system of no-claims bonus is, for several years been challenged by the European Commission.

Accident and Indemnity
Any victim (except the driver at fault) is compensation:

by the insurer of the vehicle responsible or by the Guarantee Fund damages if the perpetrator of the accident is unknown or poorly known or not insured.

NOTE – Whatever the nature of the damage, the insurer must therefore ensure that civil liability, submit to the victim, within 3 months from the claim, an offer of compensation reasoned.

In addition, to accelerate the regulations of traffic accidents, interline agreements were introduced:

IRSA Convention: Convention direct compensation from the insured and appeal among auto insurance companies which applies to property damage and Convention IRCA Convention, compensation and redress automobile body which applies to damage tangible and allows, under certain conditions, to directly compensate the occupants of a vehicle, including the driver.

Length of contract
The contract auto insurance:

concludes for 1 year, is renewable by tacit agreement.
For sale, the contract is suspended as of right from the day after. It may be terminated by giving 10 days:

the insured must inform the insurer, by registered letter, the date of sale and attach supporting documents relating, the insurer reimburses the share premium after the termination and assured him back green card and certificate of insurance.