Second risk insurance: what it is and how it works

With the second risk insurance, you get additional coverage in the event of an accident, in addition to that provided by a normal car liability policy.

Obtain a refund of the damage for the part that exceeds the amount guaranteed by the car liability policy: we are talking about second risk IVF insurance. An additional guarantee to supplement the ceiling.

What is second risk insurance?

Motor liability insurance provides for a ceiling in the event of compensation for damages deriving from accidents. The second risk insurance has the aim of guaranteeing compensation for the part of the damage that exceeds the limit of the car liability, obviously within the limit set by this second policy (there is a limit in this case too).

Second risk insurance must always be linked to an insurance contract that covers the same risk (such as the car policy) and can be:

  • connected to the RC car ;
  • linked to an ancillary guarantee, such as theft and fire for example, or legal protection.

This type of insurance is therefore a form of additional, complementary guarantee, which further raises the ceiling identified with compulsory insurance.

Second risk insurance and car rental

Now let’s talk about rental cars. In this case, you are normally obliged to pay damages in the event of theft or damage to the vehicle that is given to you in custody.

Usually, that is required of you is to sign a rental agreement that contemplates the payment of the allowance, which was the portion of the compensation that goes from 0 to a certain amount (for example, 2,000 or 3,000 Euros), while the insurance will cover the excess.

In some countries (such as the United States, Canada, or Mexico) rental companies offer an uninsured base price, in which case if theft occurs your deductible will be equivalent to the full value of the vehicle.

Depending on the company, however, it is possible, against a surcharge, to take out second risk insurance to reduce the amount of the excess to zero, to be fully protected without having to pay anything in case of theft or damage.

It is therefore very important to make sure of the guaranteed coverage level and the amount of any deductible before proceeding with a rental.

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