How insurance helps with damage to cars caused by fireworks

How insurance helps with damage to cars caused by fireworks

According to a report by www.bild.de, the start of the New Year is often marked by damage to cars due to fireworks. This damage ranges from black powder residue on the paint to severe fire damage to the body or windows. The question of who will pay for the repair costs is also addressed in the article. It should be noted that the “sender” of the fireworks is usually liable with his or her private liability insurance. If the culprit cannot be identified, the car owner's partial comprehensive insurance will step in.

As an economist, it is important to analyze the potential impact of these damages on the market and consumers. The increase in firecracker damage to cars could mean that insurance companies have to bear higher costs for claims settlement. This could lead to higher insurance premiums in the long term as the risks of damage to vehicles caused by fireworks increase. In addition, the increasing number of car damages on New Year's Eve could mean that consumers who already have private liability insurance have to pay higher premiums as insurance companies have to protect themselves against the additional risks.

Additionally, car owners who experience damage to their vehicles due to fireworks may be more likely to resort to parking spaces under trees to protect their vehicles. This could lead to increased competition for parking spaces under trees in urban areas, which in turn could lead to a shortage of these parking options and potentially higher parking fees.

Overall, it is important to note that the increase in fireworks damage to cars not only has a short-term impact on the insurance industry and consumers, but may also have a long-term impact on the market and consumer behavior.

Therefore, insurance companies and consumers alike should be prepared to deal with the dilemmas that could arise from the increase in firecracker damage to cars.