SOAT and all risk insurance: What are the differences?

2023-12-22 22:56:06

SOAT and all risk insurance: What are the differences? Photo: taken from Freepik

See more at: Valora Analytics

When driving a vehicle, no person is exempt from the possibility of an accident occurring. Therefore, it is advisable to know what the differences are between SOAT and all-risk insurance and the importance of having these.

This without leaving aside that the most recent report from the National Road Safety Agency (ANSV) indicates that between January and June 2023, more than 4,000 deaths due to road accidents have been recorded in Colombia, which which represents an increase of 6.5% compared to 2022.

In that sense, it is essential that people can have insurance that provides adequate coverage, thus contributing to safety and peace of mind on the roads. This is important because according to figures from Motor magazine, 16 million vehicles circulating in the country, only 16% have comprehensive insurance.

The above is largely due to the fact that the owners seek to insure their assets and protect themselves against eventualities on the roads, but some are still not willing to do so.

Largely because they consider that just having Mandatory Traffic Accident Insurance (SOAT), which plays a fundamental role in Colombia by providing protection and coverage to all people involved in traffic accidents, is enough.

The importance of SOAT lies in the fact that ensures immediate access to emergency medical care, covering the medical and hospital expenses necessary for the recovery of the injured.

Besidesprovides compensation for permanent disability or deathproviding crucial financial support to victims and their families.

One of the conditions of the SOAT is that health services, which are between 300 and up to 800 current daily legal minimum wages, will be recognized by the Resource Administrator of the General Health Social Security System (Adres), under certain specific events. and in certain types of vehicles.

Continue reading the story

You may be interested in: Connect Assistance, a road assistance company, expects to close 2023 with 25% growth

“SOAT is fundamental insurance for the protection of the lives of all drivers and road actors who circulate on any road, but Colombians cannot underestimate the additional risks that vehicle owners face in their daily lives. For this reason, we recommend always complementing the SOAT with all-risk insurance,” said Nicolás Díaz López, SOAT product manager at R5.

And he adds: “The latter provides comprehensive protection of vehicles against material damage, theft and other risks that, if they materialize, could directly affect the personal finances of vehicle owners, and its combination provides comprehensive peace of mind in the roads, both to preserve the integrity and life of any road actor, and to safeguard the investment represented in the vehicle.”

Differences between SOAT and all risk insurance

There is still confusion between the different types of vehicle insurance that exist on the market. This makes it more complex for the driver to be clear about the importance of being protected when driving, which is why it is essential Know the differences between SOAT and all-risk insurance.

CLOCK

It is required by law.

Rates and coverage are defined by laws and regulations.

It has the same conditions, regardless of the insurance company that sells it.

The authorities regulate the claim and payment processes in the event of a traffic accident.

The insurance policy is uniform. It is differentiated between one company and another by the corporate logo.

It does not cover property damage caused by a traffic accident (partial or total loss of the motor vehicle).

It does not cover personal injuries that have not been caused in a traffic accident.

All risk insurance

It is complementary and personal choice.

Rates and coverage are defined by the insurer.

Each insurer establishes the insurance conditions.

Insurers establish their own claims, documentation and payment processes.

The policy may vary between insurers, although it must always specify the characteristics of the policy and the insured vehicle.

It provides coverage for risks that are not insured by the SOAT such as theft, material damage or damage to third parties resulting from a traffic accident.

They respond to those involved and properties, so it also covers losses to material objects.

Insurers can provide extra services, such as repairs, chosen driver, tow truck, workshop car, inspections, and promotions.

Furthermore, it is important to highlight that, although both insurance policies aim to benefit drivers in situations of serious traffic accidents involving one or more insured vehicles, Each insurance company will support the expenses corresponding to users who have a current policyin this case the SOAT.

However, it must be taken into account that in the case of third parties involved in the accident and who do not have insurance, It will not be possible to make claims in relation to said damages.

Link: SOAT and all risk insurance: What are the differences? published in Valora Analitik – Economic, political, stock market and financial news.. All rights reserved.