In the past, in the event of an accident, material damage to the vehicle was not covered by any auto insurance policy. Only unless the owner of the vehicle had taken out comprehensive insurance. So, in the event of an accident at fault, Bob had to pay for all damage caused to the vehicle.
Because regular car insurance only covers the driver and his direct family members, living on the same address. So, if your best friend took you home safely, and he/she didn’t live on your address, the insurance didn’t cover any costs!
The situation has changed, due to the ‘Bob warranty’
Insurers have found a solution for this problem: the ‘Bob’ warranty, mostly free of charge. Those guarantees appear to be quite similar from one insurer to another. But there are some notable differences …
The first important difference, besides the conditions which are quite similar, is the definition of Bob:
The driver must be in a state of intoxication following the consumption of alcohol. In short, the driver must be drunk. Classic Bob insurance covers only driving under influence, but some insurers expand its coverage by also granting it if the inability to drive results from a bodily injury.
In the context of third-party liability, insurers cover damage caused by a Bob but not always those caused as a Bob. Either damage caused as Bob is covered by Bob’s warranty, or it is excluded. In the latter case, they can nevertheless be covered through family third-party liability insurance where the Bob component is provided for. Through private life liability insurance, the insurer then compensates material damage – caused as Bob – to the vehicle belonging to a third party.
At the level of geographic extent, insurers apply it in Belgium – with a tolerance of 30 km beyond the borders – and some explicitly cite Luxembourg. Often, a franchise is applied, or a minimum amount required for the damage.
Sometimes there’s automatic coverage for bodily injury of Bob, without having taken out a driver’s insurance. Some insurers use the guarantee for ‘good drivers’, and that way, also compensate Bob’s bodily injuries.
Finally, a couple of insurers offer the Bob warranty as part of an ‘insurance programme’, with a minimum of 3 contracts, including motor liability.
You read all the above? With enthusiasm? Then maybe you are the consultant we are looking for! Read on a little further …