When looking for new car insurance, many car owners only look at the price. In the event of damage, this selection criterion can take revenge. FOCUS Online expert Ronny Baumgart explains some of the pitfalls of car insurance that should be taken into account.
Now it’s that time again: The usual providers of “inexpensive” car insurance are calling for an annual change.
Everyone should definitely put their insurance coverage to the test. And if you have sufficient knowledge in the respective field, there is nothing wrong with doing this without support. However, you should be aware of one or the other pitfall.
Ronny Baumgart has been working in the insurance industry since 2008 and has been the agency manager of an ERGO agency in Bonn since 2012.
You can tell whether your insurance cover is good value or just cheap when you check the insurance conditions – or when you first make a claim. I recommend the first variant. Here are some pitfalls to watch out for when buying your car insurance:
A snare is the damage that can result from the animal bite – usually it is a marten. Here not only the bite but also the consequential damage should be insured. A damaged line is annoying, engine damage is very expensive. However, this expensive engine damage is a consequential damage and excluded by some insurance companies.
How individual is your car? An expensive radio with navigation system and head-up display, plus 20-inch rims and a special finish? Such accessories quickly add 20,000 euros to the vehicle price. But are these accessories also insured? Many insurers limit the accessories to 5000 euros – all together! In the above case, the policyholder would be left with a loss of EUR 15,000. Here it is worth paying an additional fee.
Have you agreed the minimum sum insured with your insurer? The compulsory insurance law provides for 7.5 million euros for personal injury and 1.12 million euros for property damage. If the damage exceeds this, you will have to pay the rest yourself. If you only have the minimum sum insured, you should stay away from valuable classic cars and expensive Italian sports cars. I think it is questionable whether one can still speak of insurance protection in these cases.
The insurance year no longer necessarily ends on December 31st. Insurers want to make the willingness to switch more difficult. If you sign a new contract and the old one cannot be terminated at the end of the year, you will be left with two insurance contracts on January 1st. You probably won’t save any money that way. But it’s not more than annoying, since you can have the new contract canceled again because of the double insurance.
Those are just a few pitfalls. Therefore, please ask yourself whether you are actually looking for the cheapest protection, or whether you want protection that suits you and your risk in terms of value for money.
If you answered yes to one or more of these questions, I recommend that you seek advice from an insurance agent. This costs money. In the end, though, it’s a good investment when you get the right protection.
The insurance expert can also point out potential savings to you. You can save money, for example, if you do without comprehensive insurance. There are actually vehicles that are not worth 1500 euros, but are still fully insured. Other examples:
As you can see, there are many ways to save money by changing tariffs or providers without sacrificing insurance coverage. Insurance should be selected according to the motto: “inexpensive but not cheap”. When in doubt, good advice is always the best way.
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