Car insurance is one of the types of insurance that cost the most for most consumers. After all, car liability insurance with partial or comprehensive coverage can cost more than 1.000 euros in premiums per year. In fact, there are several ways in which policyholders can reduce the amount of insurance premiums they have to pay.
In the article we would like to go into more detail about the possibilities you have to save premiums in the context of car insurance. A large number of the savings options apply to almost all car owners, while other options are suitable for a small group of policyholders or are not often feasible in practice.
What are the components of car insurance?
Motor insurance is compulsory in Germany for all car owners and, of course, also for owners of a motorcycle or a truck if the vehicle is driven on public roads. The duty, however, extends only to third-party car insurance, which every car owner in this country is required to have. In addition, there are other types of insurance that also come under the umbrella of car insurance 1 Car Insurance – https://www.test.en/topic/autoinsurance/ – retrieved on 24.08.22 fall, making a total of the following four insurance policies in the car insurance category:
- Car insurance
- Comprehensive insurance
- Partial coverage insurance
- Passenger accident insurance
Passenger accident insurance, while relatively common, is used – mostly rightly – by few drivers. In principle, it is a special accident insurance, but in most cases it is not necessary because of an already existing, other protection. Therefore we would like to deal in our contribution also only with the saving possibilities, which can give it with the motor vehicle liability, with the full or the partial cover insurance in practice.
No-claims class: save on premiums by driving without an accident
Basically, the simplest and most effective way to save money on your car insurance premium is to have a favorable no-claims bonus class. In fact, all policyholders are assigned to a certain no-claims class on the part of auto insurers. On the one hand, this is based on how long you have already registered the vehicle or. are active as motorists. On the other hand, you regularly move up one damage price class if you have driven without an accident.
There may well be a large difference between the lowest and the highest no-claims class. For example, it is not uncommon for beginners to pay 250 percent in premium rates, while those who have been insured for many years and experienced drivers are only charged a premium rate of 70 percent, for example, due to the significantly more favorable damage price class. However, you cannot actively change anything about the no-claims class in the short term, but must hope for the next classification and driving with as few accidents as possible.
Type and regional class: savings possible by changing vehicle or place of residence
Two further savings possibilities are interesting for a smaller group of car owners and can be realized in practice. On the one hand it is about the type class and on the other hand about the regional class. The type class means that the car insurers divide the numerous car brands and vehicle types on the market into different groups. Then, for example, within the framework of the motor vehicle liability insurance or also the partial cover insurance, it is looked at with which vehicle types, statistically speaking, particularly many claims are reported. In this way, your vehicle will also be classified in a very favorable or unfavorable type class.
The same principle is applied to the regional class. It is a matter of where your motor vehicle is registered. In this case, there are also statistics that, for example, more accidents happen in Hamburg than Münster, so that accordingly, depending on the regional class, different premium rates are applied by the insurance company.The problem in both cases, however, is that only a few motorists will switch your vehicle (vehicle types) due to possibly more favorable premiums or register the car in a different location. These savings opportunities are therefore rather theoretical, for example, if you are planning to purchase a new vehicle anyway. Then it can certainly make sense to take a closer look at the corresponding type classes and the respective premiums in advance.
Although the damage price class, type and regional class offer savings opportunities in the context of car insurance. However, the savings potential is more long-term, especially since you can actively influence the damage price class positively only by accident-free driving, but still have to wait for the next upgrade.
Number and age of drivers: savings potential also available in the short term
A first adjusting screw, on which you can actually actively contribute to the immediate reduction of the premium, is on the one hand the age of the registered drivers and their number. What is meant by this? It is not uncommon, for example, for parents to still have their son registered as the driver of the car, even though he may no longer live in his parents' house for several years and no longer use the vehicle. So the insurance coverage for the son is no longer needed, but he is still indicated to the insurance company as a driver of the car.
In this case, it would definitely be advisable to inform the insurance company that there is one less driver. If the son is also registered as, for example, a 23-year-old, the risk is still somewhat higher from the insurance company's point of view and the premium will also be somewhat higher accordingly. So – in the example – if you do not enter your son as a driver in the future, you can save a few percent on insurance premiums in the future in this way.
Reduce the annual mileage in kilometers
Another factor that could help you reduce future premiums for car insurance is the number of kilometers you drive each year. Often this is not quite realistic, sometimes also because you may have made the statement many years ago and your driving behavior has changed since then. So you may have since a new job and have to travel fewer kilometers than before.
Since the mileage in kilometers has an impact on the premium amount for car insurance, the information should be as realistic as possible. It is therefore recommended that you compare how many kilometers you have actually driven in the past and which number of kilometers you have indicated to the insurer, preferably once a year. Of course, you should not deliberately set the mileage too low just to save money. If this happens, there may be trouble with the insurance company if there are serious differences between the mileage stated and the actual mileage.
The vehicle can be stored in the carport or garage?
Another measure with which you can save insurance premiums in the car insurance is the accommodation of the vehicle in a garage or at least under a carport. The reason is that, especially in the garage, it is of course less likely that the vehicle will be stolen or damaged, for example, overnight. Therefore, there is often some kind of discount on the insurance premium, especially when storing the vehicle in a garage.
This is, of course, a possible savings potential, which does not come into question for all car owners. After all, by far not all motorists have the opportunity to store their car in a garage or carport at night. However, if you have this option, you should definitely think about whether parking is a viable option to be able to save some on insurance premiums.
Are the selected additional modules still up-to-date and sensible??
In many cases, the car insurance does not only consist of a motor liability and perhaps a full or partial cover insurance. Furthermore, many car insurers offer additional modules that include extended protection for some possible claims.
Possible additional offers include, for example:
- International cover
- Towing service
- Recovery and return transport of the vehicle from abroad
Perhaps, for example, you were traveling abroad frequently as a business traveler years ago, so that at that time a foreign protection policy including coverage of costs for salvage and return transport would have made sense. In the meantime, however, you may only drive the vehicle domestically, so that this additional module is no longer necessary. This example shows again that you should actually check your contract components in the motor vehicle insurance at regular intervals if possible to see whether the protection is still needed at all or is already obsolete.
Compare car insurance and possibly change provider
We would also like to discuss another way in which you may be able to save on your car insurance premiums in the future. This is a simple car insurance comparison, which you should carry out as regularly as possible. In total, it is rather unlikely that you happen to be insured with the currently cheapest car insurer. Since the differences in premiums between individual insurance companies can sometimes amount to several hundred euros per year, a comparison is definitely worthwhile.
You should only make sure that you carry out a car insurance comparison early in the year, but of course also not too early. A very good date is, for example, September or October of the year, because until 30. November you would have to cancel your car insurance, if you want to change the provider. When comparing, you should of course make sure that you take into account all points that have an influence on the amount of the insurance premium to be paid.
Do I absolutely need comprehensive insurance??
Another question you might ask yourself in connection with possible savings potential in car insurance is whether you actually need the current comprehensive insurance or whether a partial comprehensive insurance would not suffice. After all, the accession to the comprehensive insurance is significantly higher than that to the partial coverage. comprehensive insurance is worthwhile, especially if you value the following benefits:
- Comprehensive insurance also pays for damage to own vehicle caused by negligence
- Vandalism is insured
- Storm damage (from a certain wind force) is insured
Mainly these benefits distinguish the fully comprehensive from the partially comprehensive insurance. However, if your vehicle, for example, only has a current value of 3.If you have an insurance policy with a value of more than EUR 000 or even less, you should really consider whether you still need the protection of a fully comprehensive insurance policy for this equivalent value or whether partial comprehensive insurance is a cheaper alternative.
Insurance premiums: Conclusion on ways to save money on car insurance
In principle, there are several ways for every car owner to at least reduce the contribution to the car insurance policy. If you use all the previously mentioned options, you may be able to save up to 30 percent in car insurance premiums in the future. Some insurers offer so-called telematics tariffs, which, however, are more suitable for particularly careful drivers, but then can also lead to a lower insurance premium.