The auto insurance policy is something very important nowadays. Indeed, each household has at least one car. And since this is a purchase considered important and will be used for a few years, we all want full coverage that will take care of any potential risks that may arise.
In this article we will begin by briefly explaining the types of auto insurance policies that exist. Then, we will present you some elements to check before subscribing your car insurance contract. Finally, we will end by exposing you some aspects concerning the franchises and the comparators of insurance.
Types of car insurance contract
We usually distinguish three different types of auto insurance contract:
- The third-party contract: is the compulsory insurance that covers only the costs of material and bodily injury to another person when the driver is responsible for the accident. It is the auto insurance that costs the least, but also covers the least.
- The intermediate auto insurance contract (or enhanced third party): is a very variable contract depending on the insurance company. Indeed, it depends on the safeguards we choose in (theft, fire, broken glass).
- The all-risk contract: is the one that covers all the guarantees that concern both the driver and the vehicle and whatever the responsibility. All-risk policyholders are also quickly compensated in the event of a claim. This type of contract is the one that costs the most.
4 things to consider before buying auto insurance
We all want to minimize our auto insurance premium. It’s human and quite normal. However, you must check certain essential elements before subscribing to your auto insurance policy.
- The limit of displacements: It is necessary that you define the limit of your displacements, that these are professional or private. Indeed, insurance rates vary greatly depending on the area of travel.
- The amount of the deductible: This is an essential element in case of occurrence of an accident. The smaller the amount, the better is.
- Coverage in case of theft: You must know if the entire vehicle (inside and outside) is covered in case of theft. This guarantee is important because you know that everything inside the car is insured if it is forced one day.
- The right to a replacement vehicle: You must inquire and understand the conditions that define your rights in case of breakdown of your car, whether on road or when it is parked in your garage. Check if you will be entitled to a replacement vehicle in this case.
The deductible corresponds to the amount that remains in your responsibility and that you must therefore pay when a disaster or incident occurs. A high deductible reduces the risk taken by the insurer and will therefore reduce the amount of your auto insurance premium.
Prices set by insurance companies for auto contracts are very different. It can go from simple to double. So, before making your choice, we strongly recommend that you play against the competition. To do this, use the existing insurance comparators on the internet.
In fact, auto insurance comparators allow you to perform simulations on the internet to identify the insurers that are the most competitive on the market. It is simple, easy and convenient and allows you to have an overview of all the guarantees at a large selection of insurers. However, pay attention and compare contracts containing the same options and guarantees.