Because they don't know what they're doing

Because they don't know what they're doing

The knowledge of Mr. and Mrs. Österreicher is sad when it comes to insurance. This is documented in a current survey that was carried out on behalf of the Federal Automotive Technology Guild. This shows that most policyholders do not even know which motor vehicle liability insurance contract they have chosen and what a split tariff actually is.

But first things first, let's get to the legal background: In damages law from the ABGB (General Civil Code), every injured party is fundamentally entitled to compensation for all disadvantages they have suffered (liability). Basically - because it is precisely these disadvantages that can be compensated that lead to a curiosity that was created in Austrian law in 1973: the so-called split tariff/waiver of claims, regulated in Section 21 KHVG.

When concluding the mandatory liability insurance contract, a policyholder can choose between variant A (with rental car waiver) and variant B (without rental car waiver). If the policyholder chooses option B, as the injured party he will also receive taxi and rental car costs as well as any loss of earnings due to the non-use of his own vehicle, reimbursed by the insurance company of the person causing the damage. If he chooses option A, he waives the right to assert these claims. The insurance company grants a 20 percent discount on the premium.

But many drivers are not even aware of this. In the survey mentioned at the beginning, only 14 percent of car owners knew that they had chosen comprehensive option B for liability insurance, while 35 percent were sure that they had option A with waiver of claims.

Meanwhile, 22 percent didn't know which variant they had and 29 percent didn't even know what the question meant. More than half of those surveyed said they either didn't know about it or had never heard of it at all. The highest proportion of I don't know/never heard of this is in the 30-39 age group, where it is 35 percent each and therefore a total of 70 percent.

The survey also shows that 65 percent of drivers in Austria are not entitled to a rental car and cannot make any further claims to the insurance company of the person who caused the damage.

But the discount on the insurance premium is only better as long as nothing happens. But if this happens, the workshops often step in with a replacement vehicle at their own expense or with accommodating solutions to maintain the customers' mobility.    

Whether this division of car owners is still up to date will also be discussed at the KLS specialist days ( https://www.kls-fachtage.at/ ) on 7/8. October 2022 will be an issue in Wieselburg.