Having a car involves many expenses: maintenance, road tax, repairs, parking expenses… and of course, car insurance. In Spain, by law, all vehicles must have insurance that covers at least mandatory civil liability, which takes care of any damage that may be caused to third parties. However, there is a wide variety of car insurance policies on the market from which you can choose more or less coverages, and at a higher or lower price. Here are some things to consider before deciding on a specific policy.
Cancel your previous insurance one month in advance
If you have found a car insurance policy that is more suitable for you and you want to cancel your previous one, you must notify your insurer one month before the end of your contract, according to the Insurance Contract Law. If you do not notify us in advance, your current insurance will be automatically renewed. The best way to do this is to send a written statement to the company by telegram, bureaufax or traditional mail. In this way you will avoid later problems if the company claims that you did not communicate with the necessary time.
Adjust the coverage to your needs
The type of insurance, as well as the coverages to be taken out are the most important factor when choosing a Car policy, over and above the price. It is not a question of having the best ones, but of choosing the most appropriate ones in each case. For example, for new cars up to 3 years old, it is advisable to take out an all-risk insurance policy, as it has its own damage cover. In this way, if the vehicle suffers any damage, such as rubbing against a column when parking, the insurance company will assume the cost of repairing the damage. In addition, in the event of total loss, the compensation usually corresponds to the new value of the vehicle. On the other hand, in the case of cars more than 3 years old, it is usually more advisable to take out an insurance policy with Extended Third Parties, or even a basic one, since the value of the vehicle is considerably reduced once that period has elapsed since it was purchased. In any case, you may qualify for complementary cover depending on the risk you face. For example, if your vehicle sleeps on the street, it is recommended that you hire theft coverage, while if you do so in a private garage, you can save that coverage. Consider your specific situation to choose the coverages you need, without hiring more than necessary. </li>
Check coverage limits
In addition to the coverages that you have decided to take out, it is very important that you look at the limit that each one has. One that can cause some problems is roadside assistance. Although most insurers offer this coverage from kilometer 0, there are others that can establish a minimum distance from home to provide this service, so if you suffer a breakdown 5 kilometers from your home, it is likely that this incidence is not covered by your policy. Another example may be compensation in case of total loss of the vehicle. Some insurers may offer you compensation for the market value of the vehicle, while others do so for the new value, which can make a difference of hundreds of euros. Pay attention to these aspects in the specific conditions of each policy to be aware of the specific coverage you have in each case.
All parts count
Road safety comes first and that’s why you should pay close attention when driving your car. Also, it’s important to know that the more parts you give to insurance, the more expensive your policy will be the following year. In this way, if in one year you have given two parts, for example for a rear impact and a broken glass, the following year the insurer will penalize you by increasing your premium or not applying bonuses, even if the claims did not occur because of you.
with or without franchise?
If you want to save some money on your insurance premium, you have the option of taking out an insurance policy with excess. This implies that if, for example, you take out a policy with a $500 deductible, in the event of a loss you will have to pay for the expenses incurred up to that limit ($500) and the rest will be borne by the insurer. In return, the premium payable will be lower than if the policy had no franchise. The insurance policies that are most often “franchised” are the All Risks, since they are those that have the most expensive coverages, such as own damages. However, third-party insurance can also include coverage with excess cover, such as theft, although this is very unusual. In this way, it is possible to pay less for the insurance premium, while at the same time being protected in the event of a high-cost claim.
The single payment, the cheapest option
When it comes to paying for insurance, most companies give you the option of paying a one-time or installment payment, which can be monthly, quarterly or semi-annual. If it’s possible, pay it all at once, since it’s usually the cheapest option, and even some companies offer discounts if you pay the fee in a single payment. Conversely, some insurers may charge surcharges if you decide to pay the premium in different installments, and the more you split the premium, the higher the surcharge is usually.
The current car insurance offer is very numerous, so numerous that sometimes finding a policy can be very complicated. Comparing prices and coverages and choosing the right insurance can involve a long and difficult search if you don’t have the right tools.