It depends mainly on what your car is worth and how much it would cost you to be without it. There is no fixed rule, but a few simple questions help you decide.
What is own damage cover?
Compulsory (third-party liability) insurance pays for the damage you cause to others. It does not pay for damage to your own car when the accident is your fault.
Own damage is optional cover for your car, even if you caused the accident. Many people call it “fully comprehensive” insurance, but no policy really covers everything.
What it usually covers
It varies from policy to policy. The most common covers are:
- Collision, impact and rollover.
- Fire, lightning and explosion.
- Theft.
Others may be optional, such as natural events, vandalism, glass breakage on its own and a replacement car. If they matter to you, check that they are included.
What it usually does not cover
- Mechanical or electrical breakdowns, wear and tear and lack of maintenance.
- Items left in the car and extra equipment that was not declared.
- Intentional damage.
- Risks you did not take out cover for.
Driving under the influence of alcohol or without a licence, or an incorrectly declared main driver, can also lead to a claim being refused, depending on the policy and the case.
When it tends to be worth it
- The car is new or only a few years old. The Portuguese consumer association DECO PROTeste suggests cars up to about 5 to 6 years old as a reference.
- The car is worth a lot.
- You could not repair or replace the car without the insurance.
- The car is parked on the street overnight or does a lot of kilometres.
- The car is financed or leased. Check your contract, because own damage cover may be required.
When it may no longer be worth it
As the car gets older, it is worth less. If it is written off, the payout depends on the insured value, which goes down over time, not on the price you paid for the car.
If the car is worth little, is almost always in a garage and you could cover the loss yourself, it may make more sense to reduce your cover, for example to third-party liability with fire and theft. This change is usually made at the annual renewal.
Don’t forget the franchise (deductible)
The franchise is the part of the loss you pay yourself. A higher franchise lowers the price of the insurance but increases what you pay when you make a claim.
An example, with figures for illustration only: if the repair costs €1,000 and the franchise is €400, the insurer pays €600. If the repair costs €300, the insurer pays nothing.
Four questions before you decide
- How much is my car worth today?
- How much does the insurance cost per year, with and without own damage?
- What is the franchise, and which covers does it apply to?
- If I lost the car tomorrow, could I manage without the insurance?
We’ll do the maths with you
If you have questions, email us at segurosgamboa@segurosgamboa.pt with your number plate and what you want to protect. We’ll go through the options for your car with you.
General information only. Always read your policy conditions. Covers, exclusions and franchises vary from insurer to insurer.