AUTO INSURANCE BROKER

The driver of the vehicle is obligated to compensate for the damage produced to persons or property by the operation of the vehicle, provided that liability is established. The owner of the vehicle is liable, along with the driver, unless he can prove that the movement of the vehicle occurred against his will (Art. 2054 Civil Code).

It is the pricing system predominantly used for cars, motorcycles and mopeds, and contemplates the upward or downward variation of the premium at each annual due date in relation to the owner’s driving conduct over time, by assigning the contract to a category – merit class – which improves in the absence of claims while worsening in the presence of claims caused even if only by contributory negligence, during a period of time called the “observation period.” In the case of a policy taken out for the first annuity, the observation period begins from the day of the commencement of coverage and ends sixty days before the annual expiration date. For subsequent annuities-in the case of renewal with the same Company-the observation period begins two months prior to the effective date of renewal and ends two months prior to the annual expiration date. The evolution of the merit class is based on a rating scale developed independently by each company (so-called internal merit classes). In order to ensure comparability between the different systems adopted by companies, ISVAP established the Universal Conversion Class of Merit – CU and prescribed that the risk certificate indicate both classes of merit, the “internal” class and the corresponding Universal Conversion Class – CU. CU universal classes range from number 1 to number 18. Those who take out insurance for the first time start from class 14. In connection with more recent legal provisions, those who are insured for the first time will be able to take advantage of the merit class of one of the members belonging to their family status. This rule does not apply to Legal Entities.

The Bonus Malus terms of contract provide the insured with the option of reimbursing the Company for the amounts settled outright during the observation period for claims that are covered or not covered by the direct compensation procedure and to take advantage of the Bonus as if no claim had been made. This can be an important opportunity to use in small claims cases, as it avoids Malus and the resulting premium surcharge.

The risk certificate is the document that represents the vehicle’s claims history. It shows the claims occurred in the last 5 years and, in the case of a bonus malus tariff, the classes of merit of origin and assignment assigned by each Company, with reference to the vehicle owner, according to internal rules.
If the Automobile Liability Insurance contract is not renewed on the annual expiration date and is not replaced or is suspended due to non-use of the vehicle, or in any case in which the car is no longer used (due to sale, scrapping, etc.), the last risk certificate earned, and thus the merit class attained, retains validity for five years.

The risk certificate must be obtained from the Insurance Company with which you have the Automobile Liability Insurance Contract.

The cost of Automobile Liability Insurance may vary for different Insurance Companies.
There are several factors that affect the cost of the Contract: the Contractor’s place of residence, the Contractor’s personal age, the activity performed, the CU Class – Universal Class of Merit – the previous observation period, the number of previous claims, the maximum insured sum, and the type of car insured.

The maximum sum is the maximum amount for which the insured has decided to insure itself. In the event that the sum guaranteed is insufficient to settle all the damage caused, the party responsible for the damage would be required to indemnify the residual portion.

The maximum limits vary for different Insurance Companies, the mandatory legal minimum following DLGS 198/2007 is €2,500,000 per claim and for personal injury, and €500,000 per claim and for property damage. Some Enterprises guarantee an unlimited ceiling.

Insurance covers damage caused by the vehicle even when the owner is not driving. Some Companies place driving restrictions such as a ban on driving for those under 26 years of age and single driving, i.e., reserved for only the person described in the Policy Contract. These options are adopted by those who want to save on premium knowing that they do not need to have free driving.

In this case, the Company will apply to any indemnification of the claim the percentage of overdraft provided in the Contract, which will, therefore, remain the responsibility of the insured.

The overdraft is the percentage of the loss that remains with the insured. This means that if a guarantee provides for an overdraft of 10%, the Company will reimburse within the limits of the insured limit for the loss minus 10%.

No, however, there are cases where the company, after paying the claim, retaliates against the insured. The most frequent cases are:

1. 1. 1. Driving with an expired license;
      2. Driving under drunk;
      3. Driving under the influence of drugs;
      4. Driving vehicles with unapproved tires;
      5. damage to passengers if they are more than the number indicated in the vehicle registration;
      6. responsible for the damage would be required to compensate the residual part.

Within three days from the date of the claim, you must send to your Insurance Company or Broker, the written claim report.
The advice is to make the report using the blue form (friendly statement of accident – Report of claim): a complete compilation speeds up the claims process.

Alternatively, one can send a registered letter with return receipt to one’s insurance company making sure that it states the details of the vehicles involved, generalities of the owners and drivers, place, date, time and dynamics of the accident, any witnesses, nature of the damage derived (material damage to the car or physical damage to the person).

The refund: DIC Procedure and ordinary procedure

“Direct Indemnity Convention” (DIC) Procedure.

The “Direct Indemnity Convention” (DIC) procedure, allows the insured who is wholly or partially right, to obtain compensation for damages directly from their insurance company.

Essential prerequisites for activating this type of procedure:

• • Blue form signed by both drivers;
  • vehicles involved maximum two (excluding agricultural machinery and mopeds);
  • Personal injury not exceeding €15,000 (for property damage there is no limit).

The parties involved in the accident, after completing and signing the blue form, must forward a copy to their insurance company by registered mail with return receipt, thus initiating the indemnity procedure.

Ordinary compensation procedure

Whenever the DIC procedure cannot be activated, the “ordinary procedure” will have to be used to obtain compensation for the damage suffered.
In such a case, the injured party will demand payment of damages from the Insurance Company that insures those who caused the accident by means of a registered letter with return receipt to which a copy of the blue form or, failing that, a detailed description of the claim should be attached. In cases where personal injury also resulted from the claim, all relevant medical documentation should be attached.

The term of the Contract is one year starting at midnight on the day the premium was paid. If on the due date the policyholder fails to pay subsequent premiums (the premiums on the annual due date or even the installments following the first in the case of fractional payment), the contract will be suspended from midnight on the fifteenth day following the due date. In Contracts with tacit renewal, there is a period of fifteen days from the due date of the premium, either the annual one or the interim ones if the payment is fractioned (period of grace or forbearance) during which the insurer is obligated by law to the injured party for any claims caused by its insured, despite the fact that the insured has not yet paid the premium and unless it has not given notice of cancellation, in which case the insurance guarantee ceases to be effective on the same day as the annual due date. In Contracts without tacit renewal – with a dry maturity – the grace period applies as of right only to interim maturities (i.e., to installments following the first in the case of fractional payments) and not to annual maturities, when the Contract automatically ceases to have effect. However, it is advisable to check the terms and conditions of the contract since the Companies often provide for the grace period in this type of Contracts as well, making it conditional, however, in most cases, on taking out the new policy with them within the same 15-day period.

You can take out an Automobile Liability Insurance or in your own name (i.e., you can be a policyholder) even if you do not own the vehicle. However, the bonus-malus class shown on the risk certificate refers to the vehicle owner, not the policyholder. The policyholder can change from one year to the next, and can always use the bonus-malus class referred to the vehicle owner, as long as the vehicle owner remains the same.

In case of theft of the vehicle, the contract shall cease to have effect from the day following the report filed with the public security authority. The insured is entitled to reimbursement of the portion of the premium for the period from the day after the report to the expiration date indicated in the insurance certificate, minus an amount corresponding to the insurance tax and National Health Service contribution paid by the company.
Caution, do not confuse the duration of compulsory third-party liability coverage with voluntary theft coverage, usually provided as an adjunct to the former, which remains for one year despite the theft, with the policyholder’s obligation to continue to pay any remaining installments following the theft until the annual maturity of the contract.

Yes, for those countries where coverage is automatically provided in the policy, indicated on the Green Card (international certificate of insurance), which you must request from the Insurance Company before making the trip. For states outside the Green Card system (e.g., the United States, Canada), appropriate insurance coverage must be taken out locally. All policies also indicate the countries for which insurance coverage is already automatically extended, and therefore a Green Card is not needed.

It is a fund, supported by a percentage of the Automobile Liability Insurance premiums paid, which intervenes within the limits of the mandatory limits, in case of:

• • • Claims caused by unidentified vehicles, only for personal injuries;
    • Claims caused by uninsured vehicles, for personal injury and property damage;
    • Claims caused by vehicles insured with companies placed in compulsory liquidation.

The claim in this case should be submitted to CONSAP SPA – The Service of the Guarantee Fund for Victims of Road Accidents.

If the accident with the foreign vehicle occurred in Italy, it is necessary to send a claim by registered letter with return receipt, containing detailed description of the accident, damages suffered, data of the vehicles and drivers, to Italian Central Office, which will inform the injured party of the name of the Company in charge of settling the claim.
If, on the other hand, the accident occurred abroad, the claim should be sent directly to the Company of the vehicle responsible for the accident and to the equivalent foreign body of our Italian Central Office. It is therefore advisable, at the time of the claim, to identify exactly the insurer of the foreign vehicle.