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Motor liability insurance: here’s what you need to know
Motor liability insurance: what is it? What does liability insurance cover? How high are the premiums? Comparis explains what you need to know.
18.01.2024
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1. What is motor liability insurance?
Motor liability insurance covers damage that you cause to others with your vehicle. This includes:
Injury or death of people or animals
Damage or destruction of property
In addition, motor liability insurance covers the resulting follow-up costs. These include for example:
Lawyer and court fees
Interest
Any loss of earnings of the injured person as a result of the accident
Calculate premiums
Other basic and additional cover options are available as add-ons to motor liability insurance. Find out what kind of car insurance best fits your needs. Use the Comparis car insurance comparison tool to find the right option for you.
2. When do I need motor liability insurance?
Motor liability insurance is mandatory for all vehicles. It doesn’t matter whether you actually drive the vehicle or not.
Depending on your policy you may also be covered for damage caused abroad or damage caused by a rental car. Review your policy.
3. What does motor liability insurance cover?
Liability insurance covers damage to other persons or objects. This includes damage that you cause with your vehicle or trailer.
It usually also covers damage caused by negligence. However, in the event of damage due to gross negligence, the insurer can reclaim up to 60% of the costs.
The services are limited to the guaranteed amounts. According to the Ordinance on Motor Insurance, the insurance must cover at least 5 million francs (Art. 3 VVV).
Third party liability for cars: insurance provides legal support
Some insurance policies provide legal protection for liability insurance claims. This means the insurance company will defend you against unjustified claims. If there is a legal dispute, your insurance company will also support you.
What does motor liability not cover?
Remember: car liability insurance does not cover damage to your own vehicle. You can cover these damages with voluntary full casco or partial casco insurance.
Liability insurance does not cover any damage caused by a driver who is not authorized to drive or who does not hold a valid driving licence.
4. Motor liability insurance: costs in Switzerland
The cost of the premiums depends on various factors. These include:
Vehicle value
Main driver: this includes, for example, age, place of residence and kilometres driven per year
Provider
Motor liability insurance: it’s worth comparing.
In the case of liability insurance, most providers offer a comparable service. Deals and bonus systems still vary depending on the insurance company, however. An insurance comparison will help you find the right deal for you.
Third-party liability insurance for cars in Switzerland: cost illustration
The following example calculation shows the cost of premiums for liability insurance. The comparison includes different vehicle types (small, mid-sized, luxury) in the fifth year of operation.
| Vehicle | Lowest premium in CHF | Highest premium in CHF |
|---|---|---|
| Renault Clio IV Grand Tour 0.9 – 5-door – 90 HP – manual – CHF 19,400 | 285.00 – deductible CHF 500 | 616.10 – no deductible |
| Škoda Octavia 2.0 TDI L&K 4×4 estate – 5-door – 150 HP – manual – CHF 38,600 | 275.70 – deductible CHF 500 | 634.90 – no deductible |
| Mercedes-Benz, E-Class Coupé W238 3.0 – 2-door – 435 HP – automatic sequential – CHF 105,900 | 278.58 – deductible CHF 500 | 760.70 – no deductible |
Source: Comparis car insurance calculator, as at 15/01/2024
Car owner
Male
Year of birth: 1970
Nationality: Swiss
Place of residence: Zurich
Driving test: June 1988
Details on vehicle use
Policyholder = main driver
No claims or other traffic-related incidents in the last 5 years
Private vehicle
First registration and purchase: January 2019
Canton where the vehicle is registered: Zurich
No Garage
12,000 km/year
No bonus protection
5. Motor liability insurance: what deductibles apply?
You must pay the deductible yourself for each claim. The insurance company will pay all costs in excess of this amount.
Normally, you can choose the deductible for your liability insurance yourself. The higher the deductible, the cheaper the premium.
Statistically, less experienced drivers are responsible for a disproportionately high number of insurance claims. For young drivers (under 25), the deductible is therefore usually 1,000 francs. What counts is the driver's age when the claim event occurred.
The deductible for new drivers is 500 francs. New drivers are those who have had their driving licence for less than two years.
For higher premiums, the insurer often offers special additional deals. However, you should look closely at the benefits that the individual policies cover.
The deductible does not apply in the following cases:
You want to cover the damage yourself.
Your vehicle was stolen.
You were with a licensed driving instructor.
This article was first published on 11.07.2019
