Germans and cars – an intimate relationship. It is worth knowing about the right insurance. Ideally, this offers optimal protection for the driver, the car and other road users. On the day of car insurance on February 1st, ten important facts about car insurance follow.
1. Overview of various car insurance companies
There are various auto insurance policies with specific standards that must meet them. Motor vehicle liability insurance is compulsory, but comprehensive insurance is voluntary. However, you can expect significant cost increases in the event of an accident or damage to the vehicle without a comprehensive insurance.
Automobile liability insurance
Motor vehicle liability insurance is required by law in Germany. Vehicle owners must complete them separately for each vehicle. It covers liability and fault. This protects vehicle owners from the consequential costs of accidents and operational damage. The insurance companies determine the amount of the premium based on various factors and grant the insured a kind of no-claims discount for years without accidents. Factors for determining the premium amount can include the policyholder's vehicle type, emissions and mileage.
Vehicle third party insurance
Partial and comprehensive insurance is not mandatory in Germany. Partial comprehensive insurance should definitely be taken out. The scope of benefits is significantly expanded by taking out comprehensive insurance. This includes protection against fires, explosions or broken glass.
Car damage waiver
Fully comprehensive insurance also includes benefits in the event of vandalism, self-inflicted accidents and recently even gross negligence. Insurers often also offer cover letters with fully comprehensive insurance. These include exclusive services such as particularly quick help in the event of an accident.
2. Choosing the right car insurance
The choice of the right car insurance should be made according to your own requirements, but also the potential risks. An unsuitable contract quickly becomes too expensive or does not fully cover risks. With liability insurance, the amount of the contributions is decisive, not the scope of benefits. The best way to find the right comprehensive insurance is to compare the costs with the benefits.
Properly insure used cars
Used and new cars are to be comprehensively insured against all risks. However, car insurance for a used vehicle is often more expensive. This depends on the driver's driving behavior, but also on the age of the vehicle and its individual characteristics.
Properly insure new cars
The situation is different with a new car. Here is a new contract for a new car. As a rule, you get a completely normal contract for liability insurance, on which discounts from old contracts can be offset. If you take certain criteria into account when calculating the premium when purchasing the new contract, you save costs.
3. Partial or full insurance: Which protection is suitable
Every vehicle owner should have partial comprehensive insurance. As a rule, the scope of the statutory motor vehicle liability is not sufficient. Fully comprehensive insurance offers significantly more service and also protects against unlikely damage. If you want to find the appropriate insurance cover for the car, it is essential to check the individual contract components and consider the areas in which protection is urgently needed.
4. Act correctly in the event of an accident
In order not to miss important periods and benefits of the insurance in the event of a damage, you should proceed as follows:
– Stay calm after the first shock and exchange insurance and contact details with those involved
– Everything that goes beyond sheet metal damage or if a foreign vehicle is involved requires an accident recording by the police, which may have to be called together with the emergency services
– The insurance period for reporting the damage is one week, but you should report the accident as soon as possible
5. Cancellation of car insurance: Please note this
Here it is important to observe the notice periods for car insurance. Because outside of these deadlines, termination is only possible in rare exceptional cases. In principle, you can always cancel the car insurance, however, the cancellation will only take effect at the next possible cancellation date. Exceptions exist in the case of damage, an increase in the contributions as well as a change in the type classification and the damage class. You shouldn't cancel until you've found new insurance – that's what the legislators want.
In contrast to motor vehicle liability, there is no legal requirement for partial and fully comprehensive insurance. Using a car uninsured can have serious consequences. The cost of damage to people and damage to property is usually borne by the consumer. The damage-free class previously granted will then be downgraded retrospectively. Cancellation of car insurance almost always has to be in writing.
6. Change insurance easily
The period of notice for car insurance is usually one month. The change of a car insurance does not require a reason for the timely termination of the contract. When changing insurance, the modalities of the new contract must be observed. What is important, for example, are the benefits for the damage-free classes as well as for partial and comprehensive insurance.
7. How the insurance premium is composed
Basically, insurers are free to decide on the composition of the insurance premium. Nevertheless, insurance companies use some common bases for calculating premiums. These can be statistical values such as the regional or type class. The damage caused to third parties is also decisive for the calculation of the contributions for liability insurance. With fully comprehensive insurance, the amount of self-inflicted damage is also included in the statistics.
On this basis, insurance companies determine the amount of the premiums. The final price is based on the number and type of insured vehicles and their damage. How car insurance companies determine the premium also depends on the individual mileage of the vehicle owner. After the claim, the insurance premium can increase and the loss-free class decrease.
8. Excess reduces contribution rate
The insurers decide how the deductible affects the contribution rate in the context of the contract. Basically, insurance companies have to inform consumers about everything relevant. As a rule, the excess is payable in full for each damage. There is the possibility of significantly reducing contributions through the deductible. How this affects the contribution rate is always specified in the respective contract and can be obtained from the insurer.
9. What to do if the car insurance does not pay?
Problems with damage settlement usually occur when the course of the accident is unclear. An exact protocol of the exact process is therefore the most important measure with which those affected can protect themselves. If the car insurance does not want to pay anyway, the reason for a special termination right may be. You may even be entitled to have your own appraiser. In the event of a refusal to pay, you should definitely seek professional advice from a lawyer.
10. Which supplementary insurance policies make sense
Basically, you should take out at least partial comprehensive insurance. There is also the option of private accident insurance and foreign insurance. Private accident insurance makes sense if it includes accidents involving the vehicle. Accident insurance often also covers damage to passengers, which can be an attractive solution for frequent drivers and families. A broker can also help you choose the right insurance.