Car insurance: 12 questions about responsibilities and obligations

2. Does this mean I will also be liable for other damages and expenses?

YES. Compulsory car insurance protects third parties. It does not protect your car or you. Therefore, all the expenses that you may incur with your car and even with yourself will not be covered.

But let’s think about a scenario that doesn’t involve other cars: following a strong storm, lightning strikes a tree and causes a branch to fall on the roof of your car. Fortunately it was night and no one was injured. This does not prevent the inconvenience and expense of damage to the car. Without coverage that guarantees your damages (in this case natural phenomena), the expense will have to be paid by you. Read our article if you are still undecided between choosing between public liability insurance or personal accident insurance.

3. What is franchising and what does it mean?

The deductible is the amount you will be responsible for in the event of an accident. This means that the insurer will only pay amounts above the contracted deductible. The deductible affects the value of the insurance. In this article on our blog you will find an explanation of franchising, as well as concrete examples.

4. Does the parked car also need to be insured?

Yes, even in the event of a breakdown it is mandatory to have insurance because the vehicle – if registered and usable – continues to represent a risk. Imagine having a car that you haven’t driven in so long that you stopped paying the insurance. Unbeknownst to him, a family member decides to go out for a walk with him and gets into an accident. As the car owner, the responsibility is yours. Find out what you should do if you want to stop driving your car.

5. How can I prove that I have up-to-date car insurance?

It’s very simple. After taking out the insurance, you will receive, within a maximum period of 60 days, the international insurance certificate (or “green card”). Until you receive this certificate, you will have a temporary certificate, valid for up to 60 days.

This document certifies that the car is insured and the period covered. However, keep in mind that it is not mandatory to affix the insurance label on the car window, pursuant to Law no. 32/2023.

6. What happens if you drive without insurance?

Don’t do it. Since auto liability insurance is mandatory, you may face various consequences if you don’t have it. From fines to having your car repossessed or losing your driver’s license, each is more unpleasant than the last. In this article on driving a car without insurance, we explain in more detail what penalties you will be subject to.

7. How long does the insurance last?

The duration of the car insurance contract is always indicated in the Special Conditions of the Policy. It normally lasts 1 year and is renewable for further periods of 1 year. However, it is possible to take out insurance for a shorter or temporary period.

8. How is it renewed or extinguished?

The contract is automatically renewed if neither party cancels it at least 30 days before the renewal date. Naturally, if the insured does not pay the insurance, it lapses due to non-payment of the premium. It is also concluded in case of sale of the car, as soon as this information reaches the insurance company.

9. If I sell my car, does the insurance transfer to the new owner?

No. As we said above, car insurance ends if you sell your vehicle. In fact, it ends at midnight on the day of the sale. Bottom line: in the event of a sale, the old owner will have to notify the insurance company and the new owner will have to take out new civil liability insurance.

If the sale is made before the contract expires, you can ask the insurer to return part of the insured value (which corresponds to the time remaining until the contract expires). Alternatively, you can keep the insurance and use it on the car that will replace the one you sold.

10. Is car insurance valid in any country?

Car civil liability insurance taken out in Portugal is valid in all countries of the European Union and also for those indicated (not deleted) in the Green Card. The contact details of the offices in all the countries in which it is valid must be consulted on the website www.cobx.org.

However, if you have extra coverage and want to keep it outside Portugal, you must request a territorial extension that covers the country or countries you want. Eventually, you will have to pay an additional amount.

11. When does car insurance cover glass replacement?

If someone tries to break into your car and, to do so, breaks a window, the coverage that protects you is Theft or Robbery. If you have it, your insurance may pay the cost of replacing the glass. There is another optional coverage that covers isolated glass breakage that can save you a lot of money or avoid touching your savings.

In this article we explain what it consists of. Wondering what coverage will protect you if someone throws a rock at your car and breaks your front window? In this case, where you suffer damage due to an intentional act of vandalism, the coverage that protects you is Vandal Acts.