30.11. – Deadline for car insurance – favorable credit comparison.
The motor vehicle insurance stir again loud the advertising drum. November 30 is the last day policyholders can cancel their existing contract and switch companies. Why should car owners change car insurance?
Creeping premium increases
Almost every year, the premiums in car insurance rise. For one driver, it is only marginal, for the other significantly more expensive. Two reasons are the causes:
- Every year, the review panel checks the frequency of accidents in the respective registration districts and breaks them down to the respective vehicle type.
- The companies then adjust their contributions, taking into account price increases for spare parts and workshop costs.
For some years, some registration districts have stood out due to their rather high accident rate, for example the district of Offenbach in Hesse. It has been the undisputed number one in the Hessian registration districts in terms of accident density for many years.
But there is another reason for the increase in contributions, which affects the group of people over 60 years. It is well known that drivers under 23 pay a higher insurance premium than older drivers. But what only a few know is that with increasing age, usually from the age of 60, the contributions also increase again, due to age.
Since the contribution adjustments vary from one company to another, it makes perfect sense to compare one’s own rate with that of other providers.
Do not compare apples to oranges
The tariff landscape in car insurance has changed. Today, the unification pudding of the 90s offers different rates with different features for almost all insurances. Designations such as “Basic”, “Comfort” and “Premium” suggest that the range of services also varies. If you want to check your existing insurance coverage, you should make sure that alternative offers have comparable features. Just comparing the premium of a basic and a premium tariff is not very effective.
In the liability insurance, the differences are usually in the amount of the coverage and the facts, whether the Mallorcapolice part of the contract. The differences in the hull area become more serious.
Comprehensive insurance with significant differences in performance
The differences in the comprehensive insurance are not only in the different tariff variants, but also in the offers of the individual companies. The partial coverage insurance covers, for example, damage from accidents involving animals. Until a few years ago, these damages were limited to wild deer – deer, deer and wild boar. With higher-value tariffs, numerous insurers generally extended claims settlement to “animal damage”, including accidents involving cattle or dogs.
Another benefit in the partial coverage is marten damage. Classically, damage was assured by marten bites. Replacing the well-worn oil hose does not cost the world. Significantly more interesting is the passage of the “consequential damage by marten bites”. That means, not only the oil hose will be replaced, but also the cost of engine damage to piston eaters. However, the amount of the reimbursement for these insured events varies greatly from insurance company to insurance company. The delta is several thousand usd.
Interesting, however, are the tariffs, which not only safeguard consequential damage caused by marten bites, but also cover the costs of rodent damage without restriction.
Significant differences are also found in the duration of the reimbursement of the replacement value. Some companies limit these only to new cars and here only for a period of six months. Other companies extend the deadline up to 24 months. Still relatively young is the passage of the replacement value after theft or total loss for used cars. In this case, however, the period is maximized to twelve months from the date of purchase, unless limited to six months.
Fully comprehensive-or not?
When looking for a new car insurance is probably the question of whether a full insurance is still worthwhile. The popular saying goes that after three years it would be superfluous, but in the end everyone can answer this question only for themselves. Who “scrapes” a car with a residual value of 10,000 usd and an age of four, will be annoyed if he does not have 10,000 usd for the purchase of a comparable car. For him, the premium for comprehensive insurance would be the cheaper solution. Of course, the residual value of a car eventually reaches the point at which the premium is nonsensical. Nobody can judge this only on a flat rate.
And if the car is funded?
Almost 60 percent of vehicles on German roads are fully or partially financed. Banks do not ask for it, but common sense suggests insuring a used car full insurance in this case as well. It would be cautious, annoying if the car after one year has a total loss, the financing but four years running.