Car insurance is undoubtedly one of the best-selling products, perhaps because people perceive a high risk of accident or theft.
Moreover, in most of the countries have car insurance is mandatory.
I have often said in this space how to optimize our spending is not simply seek the cheapest. We must take into account quantitative but also qualitative factors. In this sense, finding the best quality – price.
In the case of insurance that is indispensable. Why? Simply because they are intangible. Often they are not easy to compare and although we thought that cover the same, generally is not. There are insurance companies that are more restrictive than other clauses, though they are called the same.
Comparators insurance, sometimes (depending on quality) can facilitate the task. There are some who have a wide variety of products like Arpem, and others who specialize only in certain branches.
When it comes to the car, the comparators allow us to find cheap car insurance and cover everything you need.
It is noteworthy that in some countries, the insurance market is much more advanced than others. In Spain for example there are many additional alternatives and coverage, while in countries such as Mexico even though they are safe with a higher penetration than others, there are few differentiators.
What factors should be taken into account when choosing car insurance adequate?
There are several recommendations:
1. A wide Liability coverage
In some countries there is a mandatory minimum amount and in others even without limit. In Mexico the required amounts are laughable really, or do not exist. Why is it important high coverage? Most people do not think, but the amount of damages to third parties may be much larger than the value of your car.
If we cause an accident with a luxury car and die four people, we are talking that we could be liable to pay compensation amounts close to 1 million dollars or euros (18 million pesos) according to the amounts established by law. We could simply not have the resources to deal with this situation, which we generate a total financial loss. Therefore the liability coverage on car insurance is the most important by far.
2. Damage Coverage
When car insurance speaks of “limited” cover precisely the material damages are excluded. I do not recommend hiring her unless in the case of an old car. Why? In the case of elderly it is a very expensive coverage in relation to what the car is worth, because often repair is more expensive (in which case total loss is declared and do not pay more than its market value, but the damage was repairable).
This coverage is important to check the exclusions, because there are often significant differences in many insurers. Some do not cover damage caused by vandalism, which can be a problem. Others have a different definition and what is excluded but not necessarily popular revolts vandalism.
3. Total theft
It is another important coverage on car insurance. If we steal the car, they compensated the market value thereof, that is, its value as a used car (in many companies – not all – is the first year do pay the full invoice value) minus the deductible. There are insurers who offer the commercial value + 10% in some products, or that eliminate the deductible in certain cases (installation of some kind of alarm or recorded permanently in parts like windows and mirrors).
4. Assists included
Nearly all car insurance include assists, but their scope is much different, so it is important to consider what insurance covers us and how to use them.
5. Additional coverages
There may be a variety depending on the country. It is important to assess the cost – benefit. Sometimes worth it, others less so.