How to Find a Cheap Car Insurance : How to Find a Cheap Car Insurance depends on the sum of many factors related to the type of policy chosen, the characteristics of the vehicle and the profile of the driver
In case no company wants to insure a user, he will have to go to the Insurance Compensation Consortium
According to the Automobile Insurance Price, in December 2017 the lowest historical premium for a car insurance was registered for all modalities. In this way, hedges experience decreases in their prices, especially those of All Risk with Franchise (-13.1%) and Extended Tercer (-11.6%), which are those that suffer a more pronounced contraction. On the other hand, Basic Third-parties registered a downward adjustment of -9.3% and All Risk without Excess of -9%. The overall average premium is reduced by -9.6%.
How to Find a Cheap Car Insurance without sacrificing coverage is a task in which every owner of a vehicle has ever been seen. And is that although the cost is very important, so is being protected against any unforeseen. Starting from the premise that the most expensive is not always the best, we will give you some keys so that, as far as possible, you can get the cheapest price for your car insurance.
How to Find a Cheap Car Insurance?
Types of insurance
The first thing to be clear is what insurance is needed since depending on this the amount will vary a lot. In the Spanish market there are now four types: Third Party , Third Party Extended, All Risk and All Risk franchise . The level of protection between them varies a lot and prices, too. Therefore, it is important to assess what are the essential coverages so that, in the event of a disaster, there are no surprises.
It is a policy intended to cover the damages caused to third parties in an accident in which the insured car is responsible. It is the most basic insurance that includes among its coverage the Compulsory and Voluntary Civil Liability, the Legal Defense and a coverage of those damages that the insured may suffer.
Third parties Extended
It includes the same coverages as third party insurance, although in this case it is complemented by other attractive guarantees for the user. These are usually the protection of damages produced in the vehicle’s windows, as well as those caused by the car’s fire, in addition to the assumption of car theft.
This policy collects all the coverage offered by the two previous ones and adds the damages themselves, that is, all those that occur in the insured’s vehicle and that have been caused by his fault. It is the most complete way to have the vehicle protected, although also the most expensive.
All Risk with Franchise
it is practically identical to the previous one, but with the difference that it includes a franchise that is paid by the insured and that is applied to the coverage of own damages.
Once you have decided which policy is best to hire, the next step is to provide the data of the car and driver to the insurer so that it can make a preliminary study, which will serve as a reference to offer the budget. Therefore, it is possible that the same vehicle in the hands of a different driver has a different premium. These are very important data because the insurer has to assess the level of risk that it is insuring someone.
Characteristics of the vehicle that influence the price
The data and particularities of the car are very important for insurers, so that the price will vary depending on both. These are the characteristics corresponding to the vehicle that companies take into account when establishing premiums:
Brand and model: Car insurance depends, to a large extent, on the value of the brand. Car policies of expensive models cost more than those for cheaper vehicles. A luxury car costs much more to insure than a mid-range car.
Power: cheap cars tend to have low power so the probability of suffering a serious accident is less. Hence, your insurance is economic and vice versa.
Type of fuel: Diesel, gasoline, hybrid, electric … there are many varieties that are on the market today, and although it seems to have no importance, insurers do take it into account when calculating the budget.
Accessories and finishing: the extras increase the premium as the probability of damage to an accessory increases and it has to be repaired. For its part, cheap cars do not usually bring as many extras as the most expensive, that is one of the reasons that justify the difference in price between vehicles of the same brand. Cars that do not exceed 10,000 euros do not usually include many accessories or series extras so ensuring them is not too expensive.
Antiquity: this is a characteristic that can be taken into account as time passes. The most antiquarian has the most inadvisable vehicle is an All Risk insurance and a policy is recommended to Third Parties, this being the main reason when deciding between one or the other . This premise applies to perfection in cheap cars, while lacking relevance in expensive ones.
Autonomous Community: the price of insuring a car varies depending on the geographical area. Ceuta, Melilla, Cantabria, Galicia and Asturias are the regions with the highest premiums while Aragon, Extremadura and Castilla-La Mancha are the areas where the lowest prices are found. These variations between some places and others are due to the fact that in the north of Spain there is more accidents due to bad weather and the existence of a greater number of journeys on secondary roads.
Parking: given that the probability of an accident increases when the car is parked on the street, this is also an important point as it will raise the price of the policy. Otherwise, that is, when a vehicle sleeps in a garage, the premium will be lower.
The profile of the driver
The next point that insurers take into account to prepare a budget is the type of driver that will drive the vehicle. And in Spain the auto policies are not nominative, that is, the driver and the owner of the same do not have to be the same person. Therefore, the important data are, especially, those of the one who will drive the vehicle.
Years of experience : the more years of experience you have, the more fluent you will have achieved and, therefore, the less risk of accidents.
Age : this factor is very important for insurers since the larger the driver, the better the price. In fact, there are special policies for children under 25 so that protecting a novelty is not excessively expensive.
Profession: companies consider that some jobs are more dangerous than others and, therefore, the chances of suffering an accident are higher. In this way, if at the time of preparing the budget, the insurer considers that the driver’s profession may pose a greater risk, the cost will automatically become more expensive.
Marital status: being married or having family responsibilities is usually reflected in the change of driving style, becoming calmer and more responsible. That is why companies value positively the civil status of the driver and the number of children, something that directly affects the premium.
Sinister history: this is one of the most important points because if the driver has had a long history of accidents at the wheel, the price of the premium will be higher and, even, it is possible that some companies refuse to insure him, given the risk involved in covering such a driver.
If once all the necessary data has been collected, no insurer wants to take charge of protecting a client, there is an alternative for this type of driver: the Insurance Compensation Consortium (CCS). At this point where no one assures you , the user can go to this body in charge of protecting and compensating him, as long as there is an insurance policy with a surcharge to the Consortium but in which the coverage of those damages is not included.
Compare Car Insurance
The main objective of all users when it comes to finding a car insurance is to save money and, at the same time, not have unnecessary risks. For that reason, in spite of wanting to find a policy at the lowest possible price, you do not have to settle for the first one that stumbles, but you must value all the available options well. And is that once the coverage and conditions are reviewed carefully, it is possible that the best option ends up being to pay a slightly higher premium in exchange for being more protected.
In terms of prices, broadly speaking, the cheapest insurance would be a third-party policy of an economic car with less than 25,000 euros, whose driver has considerable experience and an impeccable loss history. While at the other extreme, that is, the most expensive would be an All Risk for a new car with many horses and a large engine, whose cost is high, such as a sports car, and it is handled by a child under 25 years. With these data the premium would skyrocket.
A very useful tool to simplify this whole process is to use the car insurance comparator. Simply enter all the data and in less than two minutes offers a comparison between more than 20 Spanish insurers. In this way, with a simple glance the user can check both the prices and the coverages offered by each company.
You May Also Read
- Health Insurance Cost
- Health Insurance During Pregnancy
- Cheap Car Insurance in Florida
- Definition of an Insurance Company
- Worst Car Insurance Companies
- Top Insurance Companies in the United States
- What is Third Party Car Insurance? – Meaning & Compare