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Saving with car insurance – you have to keep that in mind

2022-11-12T07:57:11.067Z


Prices are rising everywhere. But if you do it cleverly, it doesn't have to apply to your car insurance. Especially if your children also drive the car, it can be really cheap in 2023.


Enlarge image

Hopefully well insured: car after an accident

Photo: imago stock&people / Future Image / IMAGO

A new insurer from the Netherlands is stirring up the German market and is offering protection for 300 euros cheaper.

Sounds good?

Wait and see, that doesn't suit all customers - more on that later.

In any case, you have to do an insurance comparison for your specific car model and your family situation.

You should actually do this every year, because car insurance is one of the most expensive insurance contracts that customers take out in Germany.

And this fall, the comparison is particularly worthwhile: we all have to keep our money together in the face of inflation.

Experts have been debating for months how much more expensive car insurance could become this year.

Even the Financial Supervisory Authority recommends that insurers increase their premiums.

On the one hand, insurers have been able to save money over the past two years: Because of the pandemic, Germany’s drivers have been on the road significantly less, which saved them and the insurers many accidents.

For the overall balance, the number of claims is much more important for car insurers than for other lines of insurance.

While household insurance companies spend just 40 percent of their income on paying for damage, motor insurers spend over 80 percent.

On the other hand, insurers are also feeling the effects of inflation and delivery problems: spare parts in particular have become significantly more expensive.

And wages are rising.

The bottom line is that more costs can be expected.

But maybe you can avoid the expected price increase with a change.

Competition actually stimulates business here.

There are insurers who are optimally positioned, and others who do less well for their customers - or who do not want certain customers at all.

Specifically: What costs 1000 euros for one costs only 500 euros for a cheaper competitor.

Saving tip for drivers with experience

In one market segment, competition is particularly invigorating - leading to lower prices for those who switch.

The Dutch insurer Inshared apparently does not insure vehicles if the owner is under 25 years old.

Not even in liability.

(The financial supervisory authority Bafin is currently checking whether this is actually allowed and not age discrimination.)

At the same time, the Dutch waive the question of who else is traveling by car in their tariff.

So if you have a 20-year-old daughter or an 18-year-old son who regularly drives the family car, they are also insured.

In the nicest insurance German, the provider writes: “With InShared, only the main driver is relevant when calculating the premium.” The main driver is the person who moves the car most often.

With most other insurers, regular shared use of the car by 20-year-old children or friends from the football club makes insurance cover considerably more expensive, sometimes doubling the price.

Young drivers simply cause more accidents - no experience, but a desire for speed.

Make a comparison anyway, to be on the safe side.

After all, the offer is new.

While the Dutch are a real and recognized force in their home market, expanding into Germany is an experiment.

The new feature does not help single drivers, couples and families with children under 18 as well as senior citizens anyway.

So the majority.

What is the best way to compare?

The investigation by my colleagues at Finanztip shows a similar result as for the years 2019 to 2022. It has proven useful to compare the price in two steps.

As a first step, use a price comparison portal.

Either Verivox or Check24 are suitable for this.

And then, in a second step, look at what the insurance cover with Huk24 would cost.

The online subsidiary of the market leader Huk traditionally enters the market with very low tariffs.

But she can't be listed because she alone has contact with the customers and of course doesn't want to pay any commission to the portals.

That is why it is missing in the comparison results from Check24 and Verivox.

For years, the two portals have been in a head-to-head race when comparing car insurance policies - and Huk24 is keeping up.

This year we selected 32 typical profiles of cars and their owners for the test and looked at who could deliver the best price.

Huk24 was ahead seven times, one of the providers on Check24 fourteen times and one provider on Verivox sixteen times.

(That's more than 32 best rates because five of them were identical on Verivox and Check24.)

The most important saving points

Comparing twice is usually enough to get a cheap rate.

Even if you sometimes still don't have the cheapest tariff in practice after comparing Verivox and Huk24.

In our test cases, the cheapest provider was a maximum of 50 euros cheaper.

If you compare Check24 and Huk24, they even missed out on an offer that was 360 euros cheaper this year in an expensive exceptional case.

However, it is really an exceptional case.

Important in the two comparisons you make: You have to choose a lot of features for your insurance cover.

In doing so, you should carefully consider whether the protection you are paying for this year will still be needed next year.

If you choose wisely, this can save you a lot.

Here are the most important points:

  • When comparing, pay attention to whether you will be driving

    fewer kilometers

    in the coming year , for example because you are working from home.

    If you drive 5,000 kilometers less than you specified, you can save an average of 13 percent.

  • Perhaps you no longer need

    fully comprehensive

    insurance because the car is showing its age.

    That also saves a lot.

  • If the manufacturer's warranty has expired, you can confidently choose a

    workshop tariff

    that allows the insurer to choose the workshop in the event of a claim.

    That saves around 10 percent.

  • It is also advisable

    to pay the insurance premium in full once a year in advance

    instead of month by month.

    If you can afford it, you'll save around 9 percent.

    Paying by invoice instead of direct debit sometimes costs extra.

While you're at it, pay attention to the speedometer as well.

If you have already driven significantly fewer kilometers this year, you can claim back part of the contributions for this year retrospectively until Christmas.

A simple email is usually sufficient.

First, compare your mileage in the contract with the kilometers actually driven.

Then contact your car insurance company.

Finally, have the new mileage and the amount and time of the premium adjustment confirmed.

One more note.

If your insurer hasn't increased the price this year, you may be able to find a cheaper deal from another insurer.

But you only have until November 30th.

If, on the other hand, the insurer has increased the price, this gives you a one-month special right of termination.

If you do not receive the increase until November, you may be able to cancel at the beginning of December and switch to a cheaper provider. You can find a suitable sample letter here.

If you have concluded your contract in the past five years, an e-mail is sufficient to cancel it; if the contract is older, you should still cancel it by registered mail.

Good luck and have a safe trip!

Source: spiegel

All business articles on 2022-11-12

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