When I started this blog, I made it my goal to help insurance consumers. One of the most frequent doubts is to choose an insurance company before purchasing insurance. They all offer similar coverage and services, so most of the time it is the price that tips the balance towards one or the other.
How do you choose an insurance company before purchasing car insurance?
Do you search the Internet directly or do you do it through comparators? In a few months, I have known that several blog subscribers who have taken out car insurance with the same company they wanted to leave. Just a brand change in insurance.
These and other things will be part of the content of this article so that you have no doubts about who you take out the insurance with.
3 Things to keep in mind before choosing an insurance company
For many insurance clients, it is difficult to choose the one that is best for them. In recent years, many insurers have been competing in the automobile segment. This means that there is a large number of offers based on a good number of coverage at cheap prices. Before going into the matter, I want to remind you of three aspects that you should keep in mind before choosing the insurer in which you will take out your car policy.
1 – It is mandatory to have liability insurance
First of all, in Spain to be able to circulate with a vehicle it is mandatory to have civil liability insurance that covers the damages that you may cause to third parties.
This is the main guarantee of your policy and while all insurers have to provide the same coverage, the price can vary considerably from one to the other.
2 – Secure investment
Buying a car is a great investment, for many the investment of a lifetime. Therefore you have to take care that it is not lost at the first change if you suffer an accident. The way to do this is to take out “comprehensive insurance” in its different forms. Think about it.
If the vehicle is new, the best way to insure the investment is to take out “full-risk” insurance in its different forms. But if the car is a few years old, choosing an “extended third party” maybe your best choice.
3 – Each user has a different profile.
You have to be aware that each individual has a different profile so their exposure to risk is different. The price of the insurance will vary depending on your personal circumstances. Each insurer will have its price for you, for your characteristics, those of the vehicle, and those of each guarantee.
There are three aspects that will determine your choice, especially these last two.
We each value investments differently, but what we don’t do is spend more than necessary. If you have bought a second-hand car, with a few years in tow, it will not be worth it to buy an all risk. And of course, there is your profile since almost no insurer will be able to hide your driving record.
Do I contract my insurance directly or through a mediator?
There are many companies that operate in the car insurance segment – the most profitable in the sector – so each one has to make a hole. There are currently two types of insurers: traditional companies and those that operate in direct sales.
insurers that operate in direct sales have lower structural costs, which allows them to offer low-cost products. Their online sales channels do not leave space for the mediator, so you lose the personalized treatment.
To make the search for the ideal insurance easier, insurance comparators were born. A bet in which the necessary subject is the insurance broker, without him you would not be able to contract the insurance through the comparator.
But there is more. At the beginning of the article, I was telling you about a reader who had changed insurance thinking that he was changing insurance and had not been. You will see why later.
All companies offer the same, how to know which one interests me the most
You only need to take a look at the website of the insurers to see that they all offer two modalities, third-party insurance or all-risk insurance. Around a basic package of coverage – mandatory and voluntary civil liability, driver accidents, or criminal defense – other guarantees are included until each modality is formed.
In the third-party mode, you can find from the basic insurance to an extended third party with coverage of the fire, theft, glass, travel assistance, or withdrawal of the driving license.
When it comes to “all-risk”, in addition to the above, you have your own damage coverage included with or without excess.
If all the insurers offer the same and my profile is identical for all, why is there so much difference in price in the insurance?
The simple answer is that each one values risk in one way. But the truth is that it is the coverage offered by each one that makes the difference.
In some guarantees the differences are evident. You have a clear example in legal protection, it is not the same to have it limited to 600 dollars than 1,200 dollars. It is not the same that in your own damages they compensate you for 100% of the value of the car than for its market value.
Choosing an insurance company does not depend solely on the price, nor on the guarantees offered by each product. In the current market, there are other factors that you must assess, which are not directly linked to the offer but on which your satisfaction with the insurer will depend.
3 Factors that will help you choose an insurance company for your car
You have reviewed the coverage, the price is attractive, that maybe your insurance. Now you only have to check a few things, these are some of those that I would review.
1. Misleading offers
You must be careful and check if the conditions for the second year are the same as when purchasing the policy. Most of the time they are commercial discounts that do not have continuity in time and when you renew you are surprised.
If your intention is to contract an insurance package (car, home, motorcycle) pay attention to the obligations you contract. Think about whether you will continue to have the same needs later on or will have to pay for something that you no longer have.
2. Be clear with whom you contract
In the same way that the Internet can make things easier for you, it can also complicate them. Therefore, before purchasing, you should go a little beyond the simple offer, you should investigate what is behind it.
3. After-sales service
If you choose to choose an online insurance company, check that it has the means to communicate in a way that is accessible at any time and circumstance. For certain questions, you will have to address yourself in writing, so it must be clear how to do it.
Find out about the opinions that other citizens have about the insurer. It may have the best coverage on the market or the best price, but if the service is not good it will be of little use if you have to litigate for it to be provided.
I could list other aspects, but that will already be content for another article.
You may have noticed that some of these actions take time to do. The most important thing is to be patient enough to carefully compare each of the offers.
Analyze that the coverage and the price is in line with what they offer you. Track all the information about the product, who markets it, or how the insurer behaves in the opinion of users.
On the Internet, all sites must have visible to the visitor the links to pages such as “legal information” or “privacy policies” and these are a source of information. Do not stop visiting them.
True to my habit, I leave you this question so you can leave us your opinion in the comments.
Do you use any of these criteria to choose an insurance company or do you entrust this task to an insurance mediator?