The majority of Danes have car insurance that covers third party liability and damages to their cars. Third party liability auto insurance is mandatory in Denmark. All car owners must get this type of cover in order to drive legally.
There are many reasons why you need to get car insurance. Its benefits can keep you out of trouble. Insurance also provides better peace of mind for drivers and makes the street safer. If you are planning to move to Denmark and you intend to operate a motor vehicle while in the country, then you need to get the right insurance policy for your car.
The Basics of Denmark Car Insurance
Like in many countries, basic auto insurance in Denmark is mandatory. You can not register a car if you do not have a policy for third party liability. This insurance covers the damages and injuries to other persons. It also covers injuries to the passengers of other vehicles. The third party compulsory insurance however does not include cover for your car. You need a separate insurance for that.
So if you want to insure your vehicle against damages, then you may have to opt for a Kasko Forsikring. This is often a part of the mandatory third party liability insurance. You may have to pay additional premium because this car insurance covers damages inflected on your vehicle. The Kasko may become mandatory if you are applying for an auto loan. Lenders usually impose this type of car insurance before approving your loan.
Apart from the basic car insurance, Denmark insurance companies may offer different special cover for your vehicle. If you are a parent and you want to insure a young driver (your son or daughter perhaps), then you can attach another driver to the policy. This is cheaper compared to creating another policy for the young driver.
The Top Benefits of Auto Insurance
As you can see, you can enjoy many benefits if you have auto insurance in Denmark (Do you know that the Danish term is Forsikring dk?). First, you will not get into trouble with the law. Authorities could impose a fine or a suspension of your license if you are found driving a car without insurance.
But the biggest benefit of getting car insurance is financial security. It is very expensive to pay for the damages caused by car accidents. You could experience financial difficulties if you are going to pay the damages out of pocket. With car insurance, payments for your liability can be handled by the insurance company. So this takes a great burden off your shoulders.
It would be easier also to obtain a vehicle loan if you have insurance. Whether you are trying to obtain financing for a new car or making your car as collateral, the lender will impose Kasko insurance before approval. You can not obtain a loan if your car is not covered by insurance.
Intelligent drivers always have car insurance. This insurance is a good investment because it protects you from liabilities and you can get good financial value from it.