Car Hiring Insurance: Having a car involves many expenses: maintenance, road tax, repairs, parking expenses … and of course, Car insurance. all vehicles must have insurance that covers at least mandatory civil liability, which is responsible for any damage that may be caused to third parties.
However, in the market, there is a wide variety of car insurance among which to choose more or less coverage, and with a more or less high price. Here we tell you some aspects that you must take into account before deciding on a specific policy.
7 Tips for Car Hiring Insurance
Cancel your previous insurance one month in advance
If you have found a car insurance that is more suitable for you and you want to cancel the one you had previously, you must notify your insurer one month before your contract ends, as indicated by the Insurance Contract Law. In case you do not give advance notice, your current insurance will be renewed automatically.
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The best way to do this is to send a written communication to the company through a telegram, fax or traditional mail. This way you will avoid later problems if the company claims that you did not make the communication with the necessary time.
Adjust the coverages to your needs
The type of insurance, as well as the coverages to be hired, are the most important factor when choosing a Car policy, above the price. It is not a matter of having as many more better, but of choosing the most appropriate in each case. For example, for new cars up to 3 years old, it is advisable to take out an All Risk insurance, since it has the coverage of own damages.
In this way, if the vehicle suffers any damage such as a rub with a column when parking, the insurer will assume the cost of repairing such damages. In addition, in case of total loss, the compensation usually corresponds to the new value of the vehicle. On the contrary, in the case of cars with more than 3 years old, it is usually more.
A Terceros Ampliado insurance, or even a basic one, because the value of the vehicle is considerably reduced once that period has elapsed since it was purchased.
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In any case, you can opt for complementary coverage depending on the risk you face. So for example, if your vehicle sleeps on the street it will be advisable to hire the theft coverage, while if you do it in a private garage, you can save that coverage. Take into account your specific situation to choose the coverages you need, without hiring more than necessary.
Check the limits of the coverages
In addition to the coverages that you have decided to hire, it is very important that you look at the limit that each one has. One that can cause some problems is roadside assistance. Although most insurers offer this coverage from kilometer 0, there are others that can establish a minimum distance from home to provide this service, so if you suffer a break 5 kilometers from your home, it is likely that this incidence is not covered by your policy.
Another example can be the compensation in case of total loss of the vehicle. Some insurers can offer you compensation for the market value of the vehicle, while others do so for the new value, which can mean a difference of hundreds of euros. Pay attention to these aspects of the specific conditions of each policy to be aware of the specific coverage you have in each case.
All the parts count
The road safety is first and why you should put all your attention when you ride your vehicle. In addition, it is important that you know that the more parties you give to insurance, the more expensive your policy will be the following year.
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Thus, if in a year you have given two parts, for example by a back blow, and a break of moons, the following year the insurer will penalize you by increasing the premium or not applying bonuses, even if the losses were not caused by your fault.
Are you sure with or without a franchise?
If you want to save some money on your insurance premium you have the option to hire a safe duty. This implies that if, for example, you hire a policy with a 500 euro franchise, in the event of a loss you will have to take care of the expenses incurred up to that limit (500 euros) and the rest will be borne by the insurer. In return, the premium to pay will be lower than if the policy does not have any type of franchise.
The insurance that most often “franchise” is the All Risk, as they are those that have the most expensive coverage, as the own damages. However, third-party insurance may also include coverage with a franchise, such as a robbery, although it is very unusual. In this way, it is possible to pay less for the insurance premium, while being protected in the event of a loss that involves a high cost.
The single payment, the most economical option
When paying for insurance, most companies give you the option to meet the one-time fee or make a split payment, which can be monthly, quarterly or half-yearly. If it is possible, pay it at once, since it is usually the cheapest option, and even some companies offer discounts if you pay the fee in a single payment.
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On the contrary, some insurers usually apply surcharges if you decide to pay the premium in different installments, and in how many more installments the dividend, the higher the charge is usually.
Compare Car Insurance
The current offer of car insurance is very large, so much so that sometimes finding a policy can be very complicated. Comparing prices and coverages and choosing the right insurance can mean a long and difficult search if you do not have tools like the Car Insurance comparator.
You just have to fill in a questionnaire with some data and select the type of insurance you want to hire and in a few minutes, it will show you the most suitable policies for you ordered from lowest to highest price. It is a quick and easy solution to choose the most suitable insurance for each person and vehicle.