Taking out car insurance is mandatory and necessary for you to enjoy personal protection on the road. As well as bringing you into compliance with the law, it provides cover against theft, covers your passengers and can cover the cost of repairing the vehicle. Due to the variety of offers, choosing the right contract is essential. The formula must meet your needs while respecting your budget.
Carefully evaluate your individual insurance needs
In order to choose insurance for your vehicle, you must first consider your needs as a driver. It depends on several factors, including:
- Type of vehicle
- Frequency of use and annual mileage
- Driving habits
- Vehicle value
- Personal or professional use of the vehicle
- Age, occupation and place of residence
- Available budget
In addition to the items listed above, there are personal and financial factors to consider when choosing car insurance. For example, if the insured has children of driving age, they could take out additional guarantees, such as a steering wheel loan.
Compare different types of insurance
Here are the main types of car insurance:
- Liability insurance : this formula is mandatory for all drivers. It covers material damage and personal injury caused to a third party in an accident. It allows you to travel legally, paying for damages caused by others, including passengers in the insured vehicle. Its price is relatively low, because it does not cover damage to the insured vehicle or damage to the health of the insured himself.
- Extended Third Party Insurance : this mid-range contract offers extensive protection against specific risks such as theft, fire or glass breakage, providing increased security. By choosing this additional coverage, policyholders can enhance their protection by including specific guarantees based on their needs and situation.
- Back to back insurance : it is a complete and superior formula. It covers all damages suffered by the insured vehicle, even in the event of an at-fault accident. However, this involves the highest cost. This insurance also usually covers injuries to the driver.
Simplify your task with an online car insurance comparison tool.
Factors to consider when choosing car insurance
In addition to the type of insurance, there are other important factors to consider when choosing car insurance:
- Franchises : This is the amount you will have to pay before the insurance will cover the damage. Higher deductibles result in lower premiums, but you’ll have to pay more money in the event of an accident.
- Monthly or annual premium : this is the amount to be paid to the insurance company, either every month or once a year. This is the basic price of the insurance. It’s important to choose a payment plan that fits your budget.
- Possibility of discounts (bonus-malus, responsible driving, etc.): there are ways to save money on insurance. Bonus-malus is a discount for a driver who has not had an accident. If he drives responsibly and without complaints, his premium may be reduced. It depends on the driver’s history and remains the same for all insurance companies. Some companies also offer special discounts if the driver installs safety devices in the car or takes defensive driving courses.
- Additional Warranties : They provide cover for specific events such as theft, natural disasters or damage caused by animals. Although these additional warranties often incur additional costs, they provide extensive protection in the event of unforeseen events.
- Warranty exclusions : these are events not covered by insurance. It is important to read the terms and conditions of the contract carefully to understand the warranty exclusions.
Before taking out car insurance, you must carefully read the general conditions of the contract. These conditions essentially define the rights and obligations of the insured. For this it is recommended:
- Take the time to read the contract as a whole and not just the broad outlines.
- If you have trouble with certain expressions, use a dictionary or glossary.
- Ask the insurance company for an explanation to clarify some questions.
By taking the time and carefully following these tips, choosing and arranging car insurance will be a hassle free experience.