Fuel, taxes, repairs – driving a car is expensive. At least with car insurance, you can save a lot.
First the bad news: If you were hoping that the car insurance tariffs would automatically fall thanks to Corona and the correspondingly low volume of traffic and accidents, you are wrong. “Despite falling claims figures during the COVID-19 crisis, the prices for motor vehicle insurance are constant compared to the previous year,” said Wolfgang Schütz, Managing Director of VerivoxVersicherungsvergleich GmbH. Because car insurance tariffs are calculated in the long term, so the reasoning.
Vehicle insurance: reference date 11/30
The good news: You can arrange for a cheaper tariff yourself; you should be given notice of cancellation by November 30th at the latest. Changing insurance is hardly more difficult than filling up with new fuel at the gas station. However, when switching: cheap is not necessarily cheap. What is more important is the overall package of price and performance. Services such as verivox.de and check24.de make it easier to find the right policy. It is worth trying out several comparison portals. After all, no provider has all insurance policies with all their tariffs. But even if it is easy to change insurance using a comparison portal, there are a few pitfalls to be aware of. Because in the course of the comparison it is necessary to provide information on various things that have a significant effect on the level of the insurance tariff. As a young person, you should pay particular attention to the following points when comparing insurance.
Car insurance: young people should pay attention to this
• Payment method: Even if it can be a big chunk at once, it is best to opt for annual payment. Compared to quarterly rates, you pay an average of almost 10 percent less.
• Driver: You save a lot if you state that you are the sole driver of the vehicle. As a rule, life partners are also insured at no additional cost. Especially when more young people are to drive, the bill increases. Golden rule: the younger and the more passengers, the more expensive. Good to know: If an unregistered driver has an accident, the insurance cover is still retained. However, there are severe penalties.
• Workshop loyalty: you pay up to 20 percent less premium if the insurance company can select the workshop for the repair in the event of damage. Disadvantage: In the event of damage, you are not allowed to spontaneously drive to your favorite workshop.
• Mileage: The fewer kilometers you drive, the cheaper. State the expected mileage truthfully. Incorrect information is revealed at the latest when there is damage. In the worst case, there is a risk of additional payments and even contractual penalties.
• Special equipment: Noble rims screwed on? Or built in a fat sound system? Then pay attention to how much and, above all, which special equipment is covered by the insurance. In most cases, such damage is “only” insured between 5,000 or 10,000 euros without any surcharge.
• Renegotiating: haggling can be worthwhile. According to a Finanztipp survey, every second person had great success with it. The best thing to do is to find a low tariff on a comparison portal and then obtain counter offers from other insurers.
Are telematics tariffs worthwhile?
With so-called telematics tariffs, you consent to the insurance company analyzing your driving behavior using technical means such as smartphone apps (pay-how-you-drive). Big discounts of up to 30 percent are available for relaxed and safe driving. Can pay off especially for young drivers. However, if you are not a good driver or if you like to step on the accelerator and brake abruptly, your premiums may go up instead of going down. In addition, it shouldn’t be a problem for you to be monitored all the time. The surveillance reveals where you are going, where you usually stay, where you live and who you meet.
Telematics tariffs are only worthwhile if you belong to the “Schleicher” faction and don’t give much thought to data protection.
This article was written by Nils Matthiesen
*The contribution “How you can now save on car insurance” is published by ZASTER. Contact the person responsible here.
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