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How to choose your car insurance?

You must know that it is mandatory to be insured as soon as you own a car or a two-wheeled motorcycle or scooter, and regardless of whether you drive or not. In the absence of insurance, you can pay a fine of between €500 and €3,750 depending on the circumstances.
Except if you no longer use your vehicle at all and it is not in public space. In this case, only the insurance is no longer mandatory.

You can sign this insurance agreement with one of the following organizations: insurance company, broker, bank, etc.
To define your guarantees and their amount, you must provide information about the use of your vehicle, mention the names of regular drivers, accidents and any previous penalties.

Which type of insurance should you choose?

Liability Auto – third party insurance.

Civil liability is mandatory because it allows you to repair damages caused to others.

This warranty is more generally known as “third party insurance”. It protects you in the event of damage to others, but does not cover damage to your vehicle or yourself.

Extended Third Party Insurance.

To take advantage of additional coverage, car insurance companies offer an “extended third party” formula, also known as “intermediate car insurance”. Depending on the offers, these guarantees are: fire guarantee, glass breakage, storms and bad weather, theft, explosion, natural disasters and technological disasters, etc.

All risk insurance

For very broad protection, you can take out so-called “all-risk” insurance. You will be covered for all types of damage, regardless of whether you are responsible for the accident or not, as well as for vandalism.

How much does it cost to insure your car or motorcycle?

Insurance companies generally offer 3 offers:

If you choosethird party insurance, the cheapest but also the least protective of the offers, prices are around €520 on average per year. This formula is interesting for old cars worth less than 3,000 euros on Argus or for occasional drivers.

The offer to extended third is sometimes the right formula to be better protected and at the same time limit your expenses. It costs an average of 600 euros.

That is about 15% more expensive than a third-party formula and 15% cheaper than all-risk cover.

the insurance” all risks”, as it is the most protective, the price is higher. The average price is 720 euros. This formula can be interesting for valuable cars or for very ordinary drivers.

What is car insurance premium?

The premium is the total price of the insurance contract that you must pay each year. The insurance premium is tacitly renewed every year. Contributions allow you to split the premium and pay monthly or quarterly.

How is the car premium calculated?

The calculation of the insurance premium is based on a “reference premium” set by each individual insurance company.

This premium is then adjusted to the insured, taking into account:

  • from coverage level which you have chosen. The more guarantees you choose, the higher the premium.
  • from type of vehicle : City cars are cheaper to insure than SUVs.
  • of your profile : age, the use you make of the vehicle, the traffic zone, etc.
  • of franchise : The higher the deductible, the lower the premium amount.
  • of your “ bonus Malus »: your insured history.

The premium also includes the insurance company’s administration fees and the commercial margin that the company wants to generate.

What is bonus-malus in car insurance contracts?

The bonus-malus clause

Bonus-malus is a system of reduction-increase of the car insurance premium. The Insurance Act imposes this clause in all contracts intended to insure land vehicles.

“Bonus-malus” is determined in relation to the insurance company’s reference premium.

If you are an exemplary driver during the year, the basic bonus is reduced: it is called a bonus. On the other hand, if you are liable for damages, the premium will be increased: that is the penalty.

How is bonus-malus calculated?

All policyholders who have taken out a car insurance contract start with a bonus-malus coefficient equal to 1.

that bonuses : you have not been in an accident during the year, the coefficient is reduced by 5%.

that punishment : you are fully responsible for any damage, the coefficient of your premium will be increased by 25%. If you are partially responsible for the accident, the coefficient is increased by 12.5%.

Excess in car insurance contracts.

Franchising

When the insured’s liability is not engaged, no deductible will be requested from the insured. The deductible is only paid when the insured is liable. Depending on your contract, this deductible is higher or lower.

Some insurance companies offer:

* The relative deductible : If the size of the damage is less than the deductible, you will not receive compensation. But if the size of the damage is higher than the excess, then you will be fully reimbursed.

For example: With a deductible equal to €150, you will receive nothing if the loss is €100. On the other hand, for damages in the amount of €200, you will be reimbursed in full.

This franchise game is more interesting for expensive vehicles, as the cost of repairing the damage they have suffered is often higher.

* Absolute honesty always deducted, regardless of the size of repairs. If your excess is €300 and the claim is €400, you will only receive the difference, i.e. €100.

This deductible is the safest because its amount is fixed, regardless of the claim. You always know how much is deducted from your compensation, so you avoid unpleasant surprises.

* The proportional deductible corresponds to a percentage. For example 15% refund. This type of excess can also be framed by a minimum amount and a maximum amount.

This excess may be wise to insure a cheap item.

To find the best deal, use online car insurance comparisons. You will be able to assess the price of the contributions, but also choose an insurance policy without excess.

How do you easily cancel your car insurance?

What does the law say?

Since the Hamon Act of 2015, you can cancel your insurance after one year of membership without being fined. Your insurance company must also state the notice period for your contract. In general, you must inform your insurance company 2 months before the due date.

What procedure?

You must send your insurance company a cancellation letter by registered paper or electronic mail two months before the due date.

As car insurance is compulsory, you must prove to your previous insurance company that you have taken out a new contract.

To make it easier for you, know that your new insurance company can take care of the termination.

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