Tips to save when hiring car insurance

Each company calculates the price of their insurance on the basis of their accident statistics, according to criteria such as the driver's age, profession and accident history or the model and mark of the vehicle to be secured. So finding a suitable car policy and saving at the same time is not easy.

Changing insurance is quite common among Spanish drivers, as 78% of respondents confirm having changed some insurance company over the course of their life at the wheel, of which 58.9% has done between two and five times. In this case, they are more ' infidels ' to their insurers, since 8 out of 10 acknowledges to have changed on more than one occasion of insurance company against 7 out of 10 in the case of them.

Save money in your car insurance plan

It is estimated that 6 out of 10 drivers are unhappy with their insurer, as collected from a survey conducted by Wazypark.

According to this study, 45% of drivers have changed their insurance in the last five years. Among these, 9 out of 10 were forced to change their insurance to ' all risks ' by one ' to third parties ' in order to reduce expenses because of the economic crisis. On the contrary, only 1 in 10 modified your policy to improve it and move from insurance ' to third parties ' by one ' at all risk '.

The value of your vehicle influences the price you will pay for the insurance

Carlos Rodríguez, CEO of Wazypark, says that "finding good guarantees, an affordable price and first-class services is a great headache for the majority of Spaniards." According to the manager, and Atenciendo to the results of the survey, made to more than 1,000 drivers who make use of Wazypark, 65% is considering changing insurance company this year and find one that is cheaper and offers better conditions than the current.

At the time of hiring the services of a new insurer, 52% of the drivers are fixed mainly in the price, while the 42% also analyzes the guarantees and services of the policy. Only 3% consider the company's reputation. In addition, the most-contracted insurance for cars over ten years is the insurance to extended third parties (54%). On the contrary, all-risk, franchised and all-risk contracts are more widespread among cars with less than 5 years (44% and 30% respectively), especially among drivers over 40 years.

By asking respondents about renewing their insurance policies, 73% of users recognize that they compare insured prices before to try to find a cheaper service, compared to 27% that conforms to the insurance contracted and renewed by Custom. In this case, women tend to be the most price-competitive, since 8 out of 10 is compared to 7 out of 10 men.

Recommendations
1. Compare offers: Using a comparison tool is a simple and quick way to save on car insurance, as in less than five minutes, and answering a few questions, you can know the characteristics and prices of the insurance of the main companies. Compare offers can save an average of 120 euros per year.

2. Analyze what protection your vehicle needs: Before choosing car insurance, think about your needs and what coverages you need. Avoid hiring that is not essential. For example, if your car has years and park in a garage, you can dispense with theft coverage and opt for a basic third party insurance.

3. Keep in mind your driving habits: do not neglect coverage and services that will be important in the future and, if not hire them, you may have to assume a higher cost. For example, if you are self-employed or commercial and use your vehicle for your professional activity, it will be imperative that the insurance includes a replacement vehicle in the event of a breakdown.

4. Assess the cost of extras: The value of your vehicle influences the price you will pay for the insurance. Therefore, if you decide to add extras to the car that are not standard, the cost of the insurance is likely to increase. So, before you incorporate a stereo or solar roof, you value what it will mean in the cost of your premium and if it's really worth it.


5. Reduce the risk to adjust the premium: If your car is parked in a safe place, the risk of theft will be lower and therefore it will be possible to reduce the cost of car insurance. The companies calculate the price of the car premium according to the accident risk that each driver is expected to have. Therefore, the Cleaner your accident history is the less the risk that the company assumes when you make sure and, therefore, the cheaper your car insurance will be. The same in the case of fines; If you have not been fined it is understood that you are a driver respectful of the rules of circulation and, therefore, more secure.

6. Eye on renewal: car insurance is an annual contract, so once you have the premium you will have one year of service from the company. When the expiration date approaches, compare offers with enough time to cancel the contract if you find a better insurance. To do so without problems, you must communicate the drop to your insurer at least two months before the expiration date.

7. Analyze if it is necessary to add an occasional driver: to avoid problems in case of loss, it is best to specify if the drivers will be more than one. Generally, adding an occasional driver to the policy does not vary the cost much, unless it is young or novel. This type of drivers has a higher risk profile and, therefore, your insurer will consider that its inclusion raises the probability of suffering a loss, with the consequent rise of the premium. Therefore, you value whether you need to include an occasional driver and the cost you can assume.

8. Consult the offers of the companies: if you want to hire a car insurance at the best price, attentive to the promotions of the companies. Offers such as 3x2 in insurance when hiring several products with the same insurer or discounts if a family member is already a client are some examples of the usual campaigns that usually launch. If you are already a client of the insurance company with whom you want to hire your policy in other classes — health or home insurance —, check if there are special offers: Many insurers try to make their clients loyal to the advantages of this type.


9. Beware of the power of the vehicle: if you have not already bought a car, be aware that the greater the power of the most expensive vehicle will be the insurance, as the companies associate it with a greater risk on the road. The convenient thing is that before deciding on your model you analyze what will be the cost of the premium. Remember that you must pay it every year and that a few euros more, in the long run, can add a lot of money.

10. Hire a franchise: If the car to be insured is new or few years old, it is advisable to opt for a risk insurance that will compensate you for its value in case of theft. But the cost of these insurance is usually high. A good way to save is to hire an all-risk insurance with franchise, whereby the insured agrees to pay part of the repair in case of loss. For example, if you hire an all-risk insurance with a franchise of 300 euros, in case of accident we will have to pay those first 300 euros and the company will take care of the rest. This formula allows to reduce the annual cost of the premium and, if we are good drivers, to save.

11. Beware of dividing the payment: In some companies fractioning the payment of the premium carries a cost, so before opting for this modality consult with your insurer the conditions.


12. Pay-per-use insurance: Drivers who use their car very little or meet a number of very specific requirements can find interesting offers among the pay-per-use insurances. These policies calculate the premium depending on the driving habits of the taker, such as the hours you make your travels, the type of road or the speed at which you circulate. If you take a little car you can find savings in these insurances, but if you exceed the stipulated km, you drive at night or by unsafe ways these products are not so attractive.

Find Discounts

When Bill Wilson's son was in high school and college, his above-average grades lowered Wilson's auto insurance premiums.

Generally, a B average or better qualifies for a discount, he says. Homeowner premiums can be lowered by something as simple as putting a fire extinguisher in the garage or something as expensive as a new roof.

Life insurance can be four times more expensive for smokers than for nonsmokers, so it's important to get your policy redone if you quit, says Byron Udell, founder of AccuQuote, an online life insurance broker.

Tips on Insurance Buying

Insurance protects consumers--while also maddening them. Shopping for the right policy can quite confusing and "consumers are really at a disadvantage," says J. Robert Hunter, director of insurance at the Consumer Federation of America. Getting paid for claims is sometimes no easier: "It has become a war of attrition," says Joseph Ditré, executive director of Consumers for Affordable Health Care.



Bloomberg.com consulted consumer advocates, academics, financial advisers, insurance agents, and adjusters for advice on how to avoid overpaying, underinsuring, or missing out on claims you deserve to have paid. Click ahead for tips and tricks of the trade.

Use Buying Guides

Agents are paid by insurers to sell their products and often sell only certain companies' policies. Some insurers offering lower prices, such as Geico and USAA, sell directly to the public. Before meeting an agent, read buying guides on state insurance regulators' websites, such as California's Insurance Dept. site to learn what insurance should cost and cover. Ask agents what they make on a sale, says Karrol Kitt, a professor at the University of Texas at Austin, and drill down on what policies cover. Ask them to verify answers with written proof. "Sometimes agents aren't as knowledgeable as they should be," Kitt says.

Be Wary Of Cheap Policies

Insurance isn't a "commodity like salt or sugar," says Bill Wilson of the Independent Insurance Agents & Brokers of America. "There can be a dramatic difference in coverage from one policy to another." One homeowners policy might cover all water damage, for example, while another might pay only if you notice it right away, excluding the effects of a pipe that has caused mold growth over a long stretch. In health care, coverage and price differences can be especially dramatic. "The cheapest is rarely the best," Ditré says.

Raise Your Deductible

"Raising your deductible is the best way to keep your premiums down," says Amy Bach, executive director of United Policyholders, a policyholder advocacy group. Even if you can afford the expensive premiums of a low-deductible policy, it should ultimately cost less to choose a high-deductible policy and create a bank account to insure your own small losses. Insurance should be for "catastrophic losses," says Rutgers University law professor Jay Feinman. For anything less, "it often makes sense to absorb those yourself."

Get Disaster Coverage

With disasters in the news, the importance of insuring a home against Mother Nature's bag of tricks is all too clear. Fire insurance won't necessarily pay out if the fire was caused by an earthquake--unless you have earthquake insurance. And coverage for hurricane wind damage might not protect you from the flood caused by the hurricane. (In Louisiana, only 29 percent of households are covered for floods, according to its insurance commissioner.) Flood insurance is available through the federal National Flood Insurance Program for an average of about $600 per year. On coastal areas and beachfront, coverage can be far more costly.