Hera! You have bought your first – or new, or first new – car! Just pay and hit the road. Unfortunately… that’s not how it works. Buying a car is one thing. If you want to drive this, you will have to take out insurance. Handy, for example, if you drive damage. Only there are several to choose from. One is more extensive than the other. Which insurance policy is best for you and your car? And do you need more?
Minimal obligation third-party insurance:
On the road insured. That is sensible and mandatory. As a car owner, you must take out minimum car insurance. That is the third-party liability insurance (Statutory Liability). Annoying if you damage your car, but even worse to do this to others (and then have to pay for it yourself). Fortunately, this damage to persons and property for third party insured persons is paid for by the insurer. That is the only thing this insurance does. But… if this insurance reimburses so little, why should I choose it? Because the current value of your car is low, for example, because the car is older than 10 years. That car market value can be easily calculated.
WA+ limited hull:
In addition to the minimum insurance, there is third-party liability + limited hull insurance. In addition to the damage to others, the following is covered: fire, window and storm damage, collisions with animals, theft, and burglary. Damage through your own fault is also not covered by this insurance. A third-party liability + limited hull insurance can often be insured for a small additional amount on top of the third-party liability insurance. When is a WA + limited hull advisable? For example, if your car is between 6 and 10 years old. But! Age is not everything, as will become clear later. Do you opt for WA or WA + limited hull insurance? Keep in mind that you must be able to recover the damage caused by someone else. You may need legal assistance for this. It is possible to take out legal expenses insurance. This can be useful,
Infor Credit: Google
Injury by means of owned bream burse:
The most comprehensive insurance is the all-risk insurance, also known as third-party liability + full hull. All of the above plus collisions, skidding, and damage in the event of entering the water will be reimbursed as well as damage through your own fault. Do you have a car that is ‘younger than 5 years and/or does your car still have a high current value? Then it is wise to take out all-risk insurance. In this case, the current market value of the car is probably high enough to take out a more expensive insurance policy.
all risk covers also note very thing:
Huh? All-risk covers everything, right? Well, everything about the car. But not yourself and co-drivers. For this you need accident and passenger insurance. Not mandatory, but it might be a good idea to close. You will be paid the amount you need. You can think of damage to luggage and clothing (material damage), medical costs that you incur to recover (injury) or, for example, loss of income due to permanent disability (consequential damage). Most insurers offer this cover for €3 to €5 per month.
Multiple influences
As said before: it is not only the current value and the age of the car that is important. Your personal situation also plays a role. It could just be that you see a reason to take out more extensive insurance, even if the current value of your car is low. For example, if you don’t have any money in reserve for financial setbacks (ask yourself: can I pay the costs of the total loss of my car myself?). Or if you are still paying off the car and whether you are very dependent on the car. Do you have many claim-free years? Then you can opt for broader coverage at a lower premium. In addition, the premium difference between two different insurance policies (eg WA and WA +) can be small enough to choose the broader variant. You can get a good and quick overview of the differences by using the compare car insurance.
Read More: Car Damage claim or yourself pay?
Own risk Bee car insurance:
Did you know that with some insurance policies you have to pay a deductible? This only applies to liability insurance + limited hull and all-risk insurance. The deductible only applies to self-made damage to your own car. There is therefore simply no question of third-party insurance: it does not cover damage to your own car. With the deductible, the insurer wants to reduce the numerous small amounts of damage, which entails a lot of administration and personnel costs. A high deductible is charged for minor damage. In the event of serious damage, the insurer will pay the majority for you. If you go to a garage with damage, first check with the insurer whether it is affiliated with it.
The deductible can be a fixed amount or a percentage (or per millage) of, for example, 1%. The fixed amount is around €150 with many insurers. Often there is no or a lower deductible if you have your damage repaired via the insurer’s damage repair network. Just like with health insurance, you can choose the deductible. Some car insurers offer insurance without a deductible. Want to know more about the deductible?
So what choose your car insurance?
Choose an insurance policy according to value and personal situation. Tip: do your research and compare car insurance policies via a comparison site. This provides convenience and clarity. There are more than 50 car insurers where you can take out one of three car insurance policies. Logical, but fairly complicated and time-consuming to find out the prices and the like one by one. Also, consider whether you want to take out passenger insurance. But above all: do not drive uninsured in your own car. There can only be (financial) misery.