The season for changing car insurance is upon us: here’s how young drivers can save 40 percent on costs
In a study, the money advice portal "finanztip" investigated how drivers can save on insurance.
The most favorable insurance coverage can be achieved by a double comparison. First get a quote from one provider, then from a direct insurer.
"in our research, no portal or provider offers the best price for every motorist," reports kathrin gotthold, insurance expert at "finanztip".
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When backing out of the parking space, you briefly failed to look in the side mirror and directly damaged the neighboring vehicle. Overtaking too closely on a country road and hitting another car – any kind of accident can happen quickly. In the first half of this year alone, there were more than one million accidents, according to the Federal Statistical Office. Almost 90 percent of this was property damage.
To protect themselves from high costs, car owners are required by law to take out motor vehicle liability insurance. But prices vary. So how do you find the best car insurance in terms of price and performance??
This is what the "finanztip" money advice portal investigated in a recent study. For many drivers, autumn is the time to take out a new insurance policy: if you have a new policy by the age of 30, you can save a lot of money. november can already switch to a better contract in the new year.
A car insurance policy should meet these minimum criteria
For the survey, "finanztip" first defined the following minimum criteria that can offer consumers good insurance cover: the sum insured should be 100 million euros, including a so-called "mallorca policy" that counts for rental cars abroad. The "plea of gross negligence" should be waived. This means that if damage is caused by gross negligence, the insured person does not have to fear that he or she will be left with the costs. In addition, "finanztip" recommends including marten bites and their consequential damage in the insurance as well as collisions with all animals.
Once the insurers have met these requirements, it’s a matter of finding the cheapest one among them. According to "finanztip," motorists can save several hundred euros a year if they regularly compare their car insurance and also change it if necessary. "especially if it’s been a long time since you last changed insurers, the savings potential is great," says kathrin gotthold, insurance expert at "finanztip.
"no provider offers the best price for every motorist"
For the study, the experts created 32 sample profiles and searched for the best car insurance policies with the comparison calculators verivox, check24 and the direct insurer huk24. The result: the most favorable insurance coverage can be achieved through a double comparison. "in our study, no portal or provider offers the best price for every motorist," reports gotthold. It therefore recommends combining.
First you should get quotes on a comparison portal. In the second step, you obtain an offer from one of the low-cost direct insurers that were shown to you during your search on the comparison portal. In the current study, the "finanztip" experts found the best price 27 times by searching on huk24 and verivox – 23 times with the combination of huk24 and check24.
How to pay less for car insurance
To get the best possible price, the experts recommend setting up an annual, rather than monthly, payment plan. Paying the premium all at once is more worthwhile than paying in installments. According to the experts’ calculations, the average saving is nine percent; if you switch from a quarterly to an annual payment frequency, you save eight percent, and four percent if you switch from two semi-annual to one annual payment.
For partial coverage insurance, the experts recommend taking out a deductible. With a deductible of 150 euros, you save an average of 18 percent; with a deductible of 300 euros, you save 25 percent. Those who visit a partner garage of their car insurance company after an accident also get the insurance at a lower price. On average, you save ten percent.
Even those who drive fewer miles per year save on insurance. Halve your mileage from about 20.000 on 10.000 kilometers, this can bring you an average saving of 18 percent. The total amount saved can then be several hundred euros. Using a sample car, the experts determined that a 62-year-old VW polo driver would pay 28 percent less per year if all the tips were applied; in the example, that would be almost 280 euro.
Young drivers in particular can save a lot of money. "finanztip" calculated what price reductions can occur for a 32-year-old driver, for example, if he or she follows the suggested tips. As an example car, a VW polo V is taken, with a first registration in 2017. If the driver pays monthly, has neither a deductible nor workshop commitment, a mileage of 18.000 kilometers and belongs to the driving group of the partners, the insurance will cost an average of around 844 euros in total. If this person uses all the tips mentioned, the price is reduced by 40 percent.
As the deadline for terminating the 30. November is, one should already at the beginning of november the prices compare. If you have found a cheaper offer, "finanztip" advises you not to cancel the old contract until you have a new insurance certificate.
If you already have a claim and the insurance company pays, you will be downgraded to a lower no-claims class the next year. This leads to a higher insurance premium. If you are in the middle of the no-claims class, you can consider paying for your damage yourself in the case of liability and fully comprehensive insurance. "We recommend that you only pay for the damage yourself if it costs no more than three or four times the insurance premium," says Gotthold. "more expensive damage should be covered by insurance."in the long run, you don’t save as much in insurance premiums as the costs for the damage would be paid off again.