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All you need to know about financial loss cover
When you buy or lease a car, you take out motor insurance to cover you in the event of problems with your vehicle. However, depending on the case, there is a risk that you may not receive full reimbursement for your vehicle. This is a problem in all cases, but particularly for motorists who have taken out a bank loan, or those on a long-term contract.
What is the financial guarantee?
In fact, you could find yourself in the following situation: your vehicle has been involved in too many accidents and you can no longer use it, but you continue to pay your instalments. Inevitably, you lose money.
This is where the financial loss cover comes into its own. This guarantee, included in your car insurance, covers your reimbursements if your vehicle is out of use. Financial loss cover protects the policyholder from being penalised in this situation.
Please note: via Beevfinancial loss cover is directly integrated into your Long-term rental (LLD)!
Financial loss cover offers services equivalent to those of replacement value cover. However, you can choose to take out either one or the other. The main difference is that financial loss cover has been specially developed for long-term leased vehicles!
Financial loss cover: the difference between the estimated price of your vehicle at the time of the claim and what you have to pay back.
Replacement value cover: the difference between the initial price of the vehicle and the estimated price at the time of the claim.
When does it come into play?
As with all car insurance, the conditions for reimbursement depend on your contract. However, in most cases, theft, natural disasters, fire, road accidents... are covered by the financial loss guarantee.
This cover acts as protection when your vehicle is out of use, and means you don't have to keep paying your lease payments when you can't use your car!
Setting the scene
To understand more clearly how this guarantee works, let's take a fictitious situation with the Tesla Model 3.
Today, you buy your Tesla Model 3 at €53,490, but then a claim occurs. An expert's estimate of your vehicle's value puts it at €50,000, a difference of €3,490. As a result, the claimant will not only have to continue paying his reimbursements, but also the €3,490 corresponding to the difference between the initial value of the vehicle and the amount reimbursed by the insurer.
Good to know: with Beevyou can take advantage of your Tesla Model 3 Propulsion long-term hire from €598/month with no deposit!
Other cover available in the event of a claim
Between compulsory and optional cover, it's easy to get lost. That's why we've divided up the cover you need into different sections, depending on your needs, to show you which cover you must take out and which are worth considering!
Which car warranties are compulsory?
Motorists are obliged to take out motor insurance. There are three types:
- insurance one-third simple,
- insurance to the extended third party,
- insurance all risks.
Single third party insurance is the compulsory minimumThis is the cheapest option, and only covers material and physical damage that you may cause to others. For the extended alternative, also covers certain claims such as theft, glass breakage, etc.
Finally.., all-risk cover, aptly named, insures you against all damage that you may cause, but also those you may fall victim to. Obviously, this is the most expensive option.
Concerning vehicle sellers (professional or private), who are subject to the legal guarantee of conformity and hidden defects. This protects you against any lack of conformity or hidden defects in your vehicle.
Note that these guarantees are required by law!
As far as the legal warranty of conformity is concerned, this applies in particular if your car does not conform to the description made of it, if it is out of use, or if it does not have the characteristics described before purchase.
The legal warranty for hidden defects also relies on the concept of conformity. However, in this case, the seller has deliberately and knowingly offered a vehicle that does not conform (problem with mileage, scratches, etc.).
Damage cover
Damage cover is not compulsory, but depending on your needs, it may be worthwhile taking out one or more of them. There are many types of cover, so for the sake of clarity we have listed each one for you, with a brief explanation. Here are the non-life cover options available to you:
- all-risk damage : all damage to your vehicle will be covered.
- collision damage : you will be compensated if you collide with another vehicle.
- fire and theft : if your vehicle is the victim of fire or theft, you will receive compensation. For more details on how this reimbursement is calculated, please visit the public service.
- glass breakage : compensation for damage to your glass components.
- storm : storm compensation.
- natural disasters : compensation for material damage caused by natural disasters (floods, avalanches, etc.).
- technological disaster : This concerns damage caused by industrial vehicles.
- damage suffered by the driver of the vehicle : if you are involved in an accident, you will be compensated under this special cover.
- vehicle contents" warranty : you will be compensated if objects in your vehicle are damaged or disappear.
- service guarantee : ancillary cover (breakdown assistance, legal protection, etc.)
The Board of Beev Comprehensive cover: comprehensive cover covers all types of damage such as glass breakage, fire, theft, etc. This option should therefore be favoured, both practically and financially.
Additional cover in relation to damage cover
The warranties listed below are often those offered by the seller of the car. They are neither compulsory for you, nor you for the seller. However, they are still very advantageous, because if you benefit from them, you are not necessarily obliged to take out other cover such as those mentioned above.
- contractual guarantee : This guarantee is specific to each brand, and commits the seller to the purchaser of the vehicle. It is not compulsory, but is proof of goodwill.
- manufacturer warranty : it covers defects before and after use of your vehicle (as opposed to the legal warranty, which covers defects before and not after use of the vehicle), relating to mechanical faults...
- commercial guarantee : This warranty also covers problems that occur to your vehicle after it has been in use. The difference with this option is that it covers the entire vehicle, whereas the contractual warranty excludes wearing parts. Under this warranty, you will be reimbursed the purchase price, have the vehicle replaced, or have it repaired.
- mechanical warranty : As the name suggests, you will be reimbursed for the cost of repairing any technical problems with your vehicle. This guarantee is not of interest if you are buying a new vehicle, as you will already have the manufacturer's guarantee, which covers mechanical faults.
Possibility of making a extended warranty : This option is generally subject to a charge and a mileage limit. Depending on your needs, you can choose to extend your cover or take out new cover.
Summary table of compulsory and optional cover
Compulsory cover | Optional cover |
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Lease an electric car
Our leasing offers
Find your long-term leasing offers at Beev!
And yes, Beev has got you covered! Whether you're a professional or an individual, we have something for everyone.
For professionals:
- Renault Megane e-tech for 484/monthfor 49 months and 10,000 km/year (€4,000 deposit),
- Tesla Model Y Long Range for 733/monthfor 49 months and 10,000 km/year (€2,000 deposit),
- Kia Niro EV for 457/monthfor 49 months and 10,000 km/year (€4,000 deposit),
- Mercedes EQA for 649/monthfor 49 months and 10,000 km/year (€2,000 deposit),
- Hyundai Kona 64 kWh for 435 €/monthfor 49 months and 10,000 km/year (€4,000 deposit).
Time for individuals:
- Renault Megane e-tech for 538/monthover a period of 49 months for 10,000 km/year,
- Tesla Model 3 for 638€/monthover a period of 49 months for 10,000 km/year,
- Tesla Model Y for 677 €/monthover a period of 49 months for 10,000 km/year,
- Kia Niro EV for 442/monthover a period of 49 months for 10,000 km/year.
All these vehicles are available with no deposit and no additional first rental charge!
Key points to remember
Financial loss cover is a particularly advantageous solution, especially in the case of a leasingSo think about it!
What's more, you also have the opportunity to take out additional cover to suit your particular needs!
Don't hesitate to tell us what you think of these solutions - we'll be delighted to hear from you!
