Changing car insurance after accidents: what to look out for

car insurance changing car insurance after accidents: what to look out for

At the end of the year, many consumers have bills piling up. The annual premium for vehicle insurance is also due at the end of the insurance year. this year, many districts in baden-wurttemberg are benefiting from lower regional classes. If you still want to cancel your old insurance and switch to an even cheaper insurer, you have until the end of november to do so. Outside the deadline, the car insurance can only be changed in exceptional cases. After damage claims, for example.

Accidents cause premiums for fully comprehensive and automobile liability insurance to rise. When things go wrong, many consumers therefore think about changing their insurance provider. Theoretically, the special right of cancellation applies after every claim settlement. Drivers can make use of this option with one month’s notice. Whether it is actually worthwhile to cancel an insurance policy after an accident depends on a number of factors. Consumers should inform themselves well in advance about the rates offered by other vehicle insurers.

How sensible is it to cancel car insurance after a claim??

Until 2008, it was hardly worth changing insurers after accidents. Even though the contract has been terminated, consumers had to pay the full annual premium to the old insurance company until then. For some years now, this rule no longer applies for the most part. In most cases, policyholders are even reimbursed for premiums already paid after cancellation. However, you should look around for a new provider in good time. As far as comprehensive insurance is concerned, insurance companies can also reject potential customers, for example. Even contracts that have already been concluded can be terminated by the insurer if the policyholder causes too many claims. This is why consumers may not be able to find new comprehensive insurance after accidents.

Here’s how to proceed: Consumers can cancel existing insurance contracts within four weeks of a loss event. Without a new vehicle insurance contract in their pocket, however, no one should terminate their old insurance coverage. When looking for low-cost competitors, it is best not only to use price comparison calculators, but also to find out about the rates of well-known direct insurers.

How does the change of car insurance affect the no-claims class??

Regardless of the amount of damage, drivers are penalized with a downgrade in their no-claims class after accidents. As a result, the insurance premium can increase by hundreds of euros even after damage such as mere scratches. To avoid this, consumers can pay for smaller claims out of their own pockets. This helps to avoid downgrading in case of doubt. On the other hand, paying for larger claims yourself is rarely an option. In such cases, a change of insurance can be worthwhile. But be careful: downgrading cannot be avoided in this way. The new insurer always checks the no-claims class with the previous insurance company. If the notification is only made after a new policy has been taken out, it will be corrected subsequently.

Is it worth changing insurers at all?? In individual cases by all means. The no-claims bonus of individual insurers varies. Therefore, it can happen that the downgrading with the new insurer is significantly less significant.

What is so-called discount protection?

When taking out a new car insurance policy, it can make sense to make use of the so-called discount protection. Until the introduction of new scales, most car insurers offered the so-called discount saver: a free option that consumers could take advantage of once a year

year protected against the loss of the current no-claims bonus. After a claim, the insurance company also downgraded customers with discount savers, but the respective premium did not increase in the following year. The minimum requirement for this was a no-claims class of 25. Although the discount saver is now only available in older policies, comparable protection benefits can usually be agreed for a premium surcharge when taking out new car insurance policies. The respective terms and conditions vary from provider to provider. In most cases, the insurance covers a maximum of three claims per year.

The discount protection unlike the original discount saver, it is available from most insurance companies from no-claims class 4 upwards. Nevertheless, policyholders must expect that the protection does not have an immediate effect when changing insurance after accidents. During the initial rating, the new insurance company takes into account all claims reported up to that point, which means that the discount protection only takes effect with the next claim.

conclusion: changing car insurance after accidents can

Not always, but in many cases, it is worth switching to a new car insurance policy after an accident. Although accident drivers are also downgraded by the new insurer, its rates may be more favorable in individual cases. If you want to make use of your special right to cancel after a claim, you should

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Christina Cherry
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