Slide 1. Introduction.

            The class develops what first-risk insurance is, what it covers, when it is advisable to take it out, and the implications for fleet management.

Slide 2. First-risk insurance.

• What is first-risk insurance?.

            First-risk insurance for cars is a coverage option that is particularly suited to those who want to tailor their protection to their needs and budget.

            This type of insurance sets a maximum coverage limit that is not linked to the current value of the vehicle. Unlike traditional insurance, which usually requires an appraisal of the car's value to determine compensation in the event of an accident, first risk insurance simplifies this process and offers a fixed insured amount that is established when the policy is taken out.

            In traditional third-party insurance, a proportional rule is applied, that is a formula that determines the amount that the insurance company will pay in the event of a claim. With first-risk insurance, this is waived.

• How it works. 

• 1. A fixed capital amount is agreed upon.

            You and the insurance company agree on a maximum amount for certain types of coverage, for example, 20,000 euros for theft or fire damage.

• 2. Compensation without proportional rule.

            If an accident occurs or the car is stolen and the damage is 8,000 euros, you will be paid the full 8,000 euros; if the damage is 25,000 euros, you will be paid the agreed 20,000 euros and you will be responsible for the remaining 5,000 euros.

• 3. Coverage limit.

            If the damage exceeds the insured amount, you will have to pay the difference.

• What coverage can be included.

            This insurance can cover different aspects, including:

• 1. Travel assistance.

            Especially if you often drive long distances in your car, far from your place of residence.

• 2. Theft coverage.

            This coverage also includes cases of theft, where no force is used against property or people.

• 3. Fire coverage.

            For damage to the vehicle caused by combustion, burning, explosion, or even lightning strikes.

• Advantages of first-risk insurance.

            This type of car insurance has some advantages that should be taken into account, such as:

• 1. Personalized coverage.

            One of the main advantages of first-risk insurance is its flexibility. It allows policyholders to tailor coverage to their specific needs and budget, offering a personalized solution that other types of insurance cannot provide so easily.

• 2. Protection against significant riskes.

            In the event of serious damage or total risk of the vehicle, first-risk insurance offers solid protection up to the agreed limit, regardless of the car's depreciation.

            This way, policyholders can receive adequate compensation to repair or replace their vehicle without worrying about the current value assessment.

• 3. Ideal for specific risks. 

            It is useful for covering theft or partial damage when the cost does not exceed a fixed amount.

• 4. Cost forecasting.

            With a predefined coverage limit, policyholders can plan their finances with greater clarity and stability. Knowing the maximum amount that can be received in the event of a claim helps to better manage budgets and expectations related to vehicle protection.

• 5. Agility in claims.

            The claims process for first-risk insurance is usually faster and simpler than for conventional insurance. Since it is not necessary to assess the value of the car at the time of the accident, claims can be processed more efficiently and quickly.

• 6. Peace of mind and financial security.

            First-risk insurance offers a solution that combines effective protection with financial control for drivers on a limited budget or who prefer guaranteed coverage without the fluctuations associated with asset valuation.

• First-risk insurance is recommended.

            The suitability of first risk insurance depends on your needs and the characteristics of your vehicle. If you have a lower-value car or a limited budget, this insurance can be very useful.

            It allows you to enjoy the necessary protection without paying high premiums based on the total value of a vehicle that may no longer correspond to its current market value.

• Implications for fleet management.

            The main consequence is that insurance can be tailored to our budget, and it is cheaper than comprehensive insurance.

            The following measures are recommended.

• 1. Limited budget.

            If we have a limited budget, we can take out fleet insurance to fit within this budget.

            Cars with higher residual values need to have greater coverage and a higher policy than vehicles with low residual values.

• 2. Specific risks.

            If we have certain specific risks in the fleet, such as theft, fire, or damage due to weather events, and we do not want to take out comprehensive insurance, we can take out a first-risk policy specifically for theft, fire, or damage due to weather events.

            Electric vehicles have a low risk of fire, but a first-risk policy can be taken out to reduce this risk.

• 3. Vehicle availability time.

            The management process with the insurer is more efficient and faster than conventional insurance, so the vehicle spends less time out of service and more time available to provide the service.

• 4. Type of insurance.

            In a vehicle fleet, insurance must be taken out according to vehicle type and age. 

            You can have one type of vehicle with comprehensive insurance, another type of vehicle with comprehensive insurance with an excess, another type of vehicle with third-party insurance, or another type of vehicle with first-risk insurance.

            In my experience, I have come across some fleets that have all their vehicles insured with the same type of insurance, without distinguishing between the type of vehicle, the age of the vehicle, or the residual value, which is bad practice.

• 5. Consider all the features and limitations of the policy.

            Ensure that it aligns with your expectations and coverage requirements. This type of policy can offer you the financial peace of mind and vehicle protection you need.

• 6. Update the policy periodically.

            Fleet needs and composition can change, so it is crucial to review and adjust the policy regularly, at least once a year.

            In summary, first-riskinsurance is an excellent option for those seeking auto insurance coverage that is specifically tailored to their personal and financial needs. It offers several advantages, such as customization and simplicity in the claims process, making it an attractive option for many drivers.

Slide 3. Thank you for your time.

            The class has developed what first-risk insurance is, what it covers, when it is advisable to take it out, and the implications for fleet management, see you soon.