10 tips for taking out the best car insurance

Car insurance

The most important step you will have to take after you have signed the purchase of your new car is the choice of insurance that protects you against a possible accident. To choose the one that suits your needs without paying a fortune we advise you to follow these 10 practical tips.

One of our main concerns when purchasing a new car is to know which of all types of car insurance we must underwrite and whether the policy we take out will really suit our needs.

While the law only requires us to have the minimum liability insurance, many of us opt for more comprehensive coverage and that better protects us against any kind of unforeseen.

Faced with this, and if you still do not know how to choose the best insurance for your car, today we present 10 tips that will help you when you want to subscribe to a policy appropriate to your vehicle and your needs.

1.) Define a budget

The first step you will have to take before deciding on insurance or another is to set the budget that you want to spend on your car policy.

It is important to be clear about this point before you start your search, as the price differences for the same type of insurance can be very large depending on the company that markets it.

For this reason, we advise you to analyze your possibilities and set the maximum amount that you can invest in an annual or monthly basis in the insurance of your car.

2.) Discuss what kind of coverage you need

Once you’ve set the budget you want to spend on your car insurance, it’s very important that you know what kind of coverage you want to hire, what your needs are and what kind of guarantees are of no relevance to you. Today, there are quite a few types of insurance and each offers different coverages.

Remember that apart from mandatory policies, including Mandatory Civil Liability, Driver’s Insurance, Legal Defense Coverage, and Moons, there are different options that you can add to your base insurance that will increase the total price of the policy.

Questions you may ask yourself when analyzing your needs include:

  • Are you young? Do you have had your driver’s license for less than two years?
  • Do you live in a potentially dangerous sector or have a high-risk perception?
  • Do you regularly drive through difficult areas or with a lot of vehicle influx?
  • Are you a responsible driver? Have you had any car accidents?
  • Will you be the only driver in the car? Remember that there are different types of drivers depending on the use they give the vehicle.

It may happen that at the time of signing your policy you have other specific needs such as obtaining car insurance coverage abroad, travel assistance, car replacement in case yours is referred to a workshop, etc.

3.) Insurance At All Risk or Third Parties?

Once you’ve recognized what your main needs are, it’s time to decide whether you want your policy to be All Risk or just Third Party.

While experts advise that for new cars it is better to take out All-Risk insurance and that for cars over three years of age a Third-Party policy is sufficient, the truth is that it will all depend on the offer you can find at the time and the letter contract.

Today, there are many possibilities where third-party insurance offers virtually the same coverage as one At All Risk and without so many restrictions.

4.) With or without franchise?

The theme of the franchise is one of the most discussed points when choosing the best car insurance.

It’s true that an All-Risk policy with a franchise is cheaper than a no-franchise policy. However, if you take this option you should know that in the face of a minor repair the insurer will cost a very low percentage or simply not cost anything.

But if you’re one of those people who prefers to prevent and who always see the risk in the first place, An All Risk insurance with excess may be the best option in case you suffer a total accident.

In this case, the company will cost a fairly high value of the car and, in some cases, can even fully restore it.

5.) Select car insurers

Once you have finished analyzing the different points to know what type of insurance suits your needs it will be time to start the search.

In this sense, the first thing is to select a group of three to five companies.

Choosing the best car insurers will help you save time, keep ideas clear and not confuse you among the thousands of offers that exist on the market.

6.) Request quotes

This point may take some time, but it’s very important that you do it thoroughly.

The first thing is to ask for a quote of the type of policy you are looking for from each of the selected insurers.

I advise you to carry out this operation online at first. Companies have advanced sites where you can request an online quote or review the different offers they offer.

Then, point to each insurance that you find interesting on a sheet and write down the most important features of each one.

7.) Uses an car insurance comparator

A car insurance comparator can be very helpful especially if you’ve found the policy you’re looking for at the various insurance sites.

Nowadays, you can find different comparators that just answer a couple of questions give you a list of the most convenient and economical insurance.

8.) Phone insurers

You may not be able to find all the quotes you are looking for on the Internet or that you prefer to ensure the prices and promotions that appear on the Web.

Faced with this, I recommend that you call directly to those insurers that you do not yet manage the characteristics and prices of their policies.

Sometimes the rates that appear on the Internet may vary. It can also happen that if you call the company directly, it offers you some kind of discount or that proposes a type of policy that best suits your needs.

9.) Review the contract and specific conditions

If you’ve already decided which is the best insurance for your car, it’s time to take a look at the contract and check all its terms very well.

Among the points to keep in mind are:

  • Coverage
  • Franchise
  • Right to demand
  • Special conditions

Remember that the car insurance contract is a mutual agreement, so if you have any doubts or disagree at any point, your company should be able to negotiate.

10.) Cancel your old car insurance

If you had previous insurance, don’t forget it’s time to cancel.

For this, simply contact your old insurer and communicate your desire to unsubscribe your car policy.

In some cases, the company will send you a document for you to sign and formalize the operation.