Do you pay an increasingly high auto insurance premium every year without blinking? Go look elsewhere! Taking advantage of the competition could save you a lot of money.
Car insurance represents on average 10% of a driver’s budget and for 2024 contributions will further increase between 3 and 5%. However, it is possible to pay much less with equivalent guarantees. Discover five arguments to separate yourself from your current insurer.
1-To benefit from entry prices
First thing to know: in car insurance, loyalty does not pay. Insurers rarely offer price advantages to their oldest customers or those who hold the most contracts. And you will not be treated better in the event of disasters: these are managed anonymously by specialized platforms. Worse, premiums may even increase sharply after a few years with the same insurer.
The reason? In order to attract a car or home customer, the first method is to offer discounted entry prices. And some insurers thus compensate for lower prices to new customers with higher contributions for already loyal policyholders. By changing insurer, you can once again benefit from promotions and other advantageous offers reserved for new customers.
2-To obtain more advantageous guarantees
Insurers review their general conditions every two to three years. The key to this renovation: generally more attractive prices and more comprehensive guarantees. But these do not benefit former policyholders, who keep the contract originally signed. Changing insurers, most of the time, allows you to find more generous coverage at an equal cost.
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3-To avoid being terminated
We do not always know: the insurer can terminate a contract after a loss when this is provided for in the general conditions. In fact, a customer who declares two or three claims, even if not responsible, within three years, has a high probability of being kicked out by his insurer. With, often, the unpleasant feeling of being kicked out like trash after many years of paying your dues. In this case, it is better to take the lead and look for a new insurer. If you cancel the contract yourself, you will not be labeled as a canceled insurer during your search. It will be much easier for you to find affordable insurance.
And in the event of a penalty?
Canceling your car insurance can also be relevant in the event of a penalty. Insurers do not have the same pricing policies and some are more generous than others towards penalized drivers. In addition to the reduction-increase coefficient, the bonus-malus, they generally apply their own claims index, which impacts the total cost of insurance.
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4-To adapt your contract
Your risk changes with changes in your life. Several contract modifications have a direct impact on the price. Among them:
- Adding a new driver
- A move
- A change in professional situation
Depending on the modifications made, your insurer is not necessarily the most competitive. Everyone has their own price balance depending on the profiles they wish to attract. At the same level of coverage, there can therefore be significant price differences. The solution to maintain a good guarantee/price ratio: compare the offers every three years or when you wish to add an amendment.
When your car gets old
After 7-8 years, the value of a vehicle is significantly depreciated. This is the time to pass the formula to a third party: as it does not cover the damage you cause to your car, it is much cheaper. Here again, insurers have different contracts and prices. The one that insures you well against all risks is not necessarily the best when you move on to a third party. This is also a good opportunity to compare.
5-Because it has become easy
Since 2015, the Hamon law has allowed you to cancel your car insurance at any time. Only condition: you must have more than one year of commitment. The termination formalities are handled by your new insurer, who will contact the previous one. No more excuses, therefore, for remaining loyal to insurance that has become too expensive or no longer protective enough.
Four unstoppable tips for making big savings on your car insurance