The most important step that you must take after having signed the purchase of your new car is choosing insurance that protects you against a possible loss. To choose the one that suits your needs without having to pay a fortune, we advise you to follow these 10 practical tips.
One of our main concerns when purchasing a new car is to know which of all the types of car insurance we should take out and if the policy we take out will suit our needs.
Well, although the Law only requires us to have the minimum Civil Liability insurance, many of us opt for more complete coverage that better protects us against any type of unforeseen event.
Given this, and if you still do not know how to choose the best insurance for your car, today we present 10 tips that will help you when you want to subscribe to a policy appropriate to your vehicle and your needs.
1: Define a budget
The first step that you must take before deciding on insurance or another is to set the budget you want to allocate for your car policy.
You must be clear on this point before starting your search since the price differences for the same type of insurance can be very large depending on the company that sells it.
For this reason, we advise you to analyze your possibilities and set the maximum amount that you can invest annually or monthly in your car insurance.
2. Analyze what type of coverage you need
Once you have set the budget that you want to dedicate to your car insurance, you must know what type of coverage you want to hire, what your needs are, and what type of guarantees are not relevant to you. Today, there are quite a few types of insurance and each one offers different coverage.
Remember that apart from the mandatory policies, among which are Obligatory Civil Liability, Driver’s Insurance, Legal Defense Coverage, and Windows, there are different options that you can add to your basic insurance and that will significantly increase the total price of the policy.
Some questions that you can ask yourself when analyzing your needs are the following:
- You’re young? Have you had your driver’s license for less than two years?
- Do you live in a potentially dangerous sector or do you have a high-risk perception?
- Do you regularly circulate through difficult areas or areas with a lot of vehicle traffic?
- Are you a responsible driver? Have you had any car accidents?
- Will you be the only driver of the car? Remember that there are different types of drivers depending on the use they give the vehicle.
It may happen that at the time of signing your policy you have other specific needs such as obtaining car insurance coverage abroad, travel assistance, replacing the car in the event that yours is referred to a workshop, etc.
3. Comprehensive or Third Party Insurance
Once you have recognized what your main needs are, it is time to decide if you want your policy to be Full Risk or Third Party only.
Although experts advise that for new cars it is better to take out Full Risk insurance and that for cars older than three years a Third Party policy is enough, the truth is that everything will depend on the offer you can find in the market. timing and fine print of the contract.
Today, there are many possibilities where a Third Party insurance offers practically the same coverage as an All Risk insurance, and without so many restrictions.
4. With or without franchise
The topic of the franchise is one of the most discussed points when choosing the best car insurance.
It is true that a Comprehensive policy with excess is cheaper than one without excess. However, if you take this option, you should know that in the event of a minor repair the insurer will pay a very low percentage or, simply, will not cost anything.
But if you are one of those people who prefers to prevent and who always see the risk first, an All Risk insurance with excess may be the best option in case you suffer a total loss.
In this case, the company will pay for a fairly high value of the car and, in some cases, can even pay it back completely.
5. Select the car insurers
Once you have finished analyzing the different points to know what type of insurance suits your needs, it will be time to start the search.
In this sense, the first thing is to select a group of between three and five companies.
Choosing the best car insurers will help you save time, keep your ideas clear, and not get confused among the thousands of offers that exist in the market.
6. Request quotes
This point may take some time but it is very important that you do it thoroughly.
The first thing is that you request a quote for the type of policy you are looking for from each of the selected insurers.
I advise you, at first, to carry out this operation online. The companies have advanced sites in which you can request an online quote or review the different offers they propose.
Then, write down each insurance that you find interesting on a sheet and write down the most important characteristics of each one.
7. Use an insurance comparator
A car insurance comparator can be very helpful especially if it has been difficult for you to find the policy you are looking for in the different insurance company sites.
Currently, you can find different comparators that just answer a couple of questions offer you a list of the most convenient and economical insurance.
8. Call the insurance companies
It may happen that you cannot find all the quotes you are looking for on the Internet or that you prefer to make sure of the prices and promotions that appear on the Web.
Given this, I recommend that you call directly those insurers of which you still do not manage the characteristics and prices of their policies.
On some occasions, the rates that appear on the Internet may have varied. It can also happen that if you call the company directly, it offers you some type of discount or that it proposes a type of policy that is better adapted to your needs.
9. Review the contract and specific conditions
If you have already decided on the best insurance for your car, it is time to take a look at the contract and review all its terms very well.
Among the points you should keep in mind are:
- Right to demand
- Particular conditions
Remember that the car insurance contract is a mutual agreement, so if you have any questions or do not agree on some point, your company should be able to negotiate.
10. Cancel your old insurance
If you had previous insurance, don’t forget that it’s time to cancel it.
For this, all you have to do is get in touch with your old insurer and communicate your desire to cancel your car policy.
In some cases, the company will send you a document for you to sign and formalize the operation.