Why is it expensive to cheap car insurance

Posted by Admin in Travel Insurance | 0 comments

When choosing a car insurance, many choose by price.

My advice is to worry about what to cover and then the price .

I advise you to make a list of toppings that you think you might need and then find the best possible price.

My purpose in this paper is to demonstrate why the cheap insurance expensive.

Imagine the following scenario: you get a third party insurance (Liability, Roadside Assistance basic occupant) for 180 euros / year. Is delighted with the price. The agent recommended that included breaking glass for more than 20 euros per year (you did not accept, because account has not cracked or broken glass) and an upgrade to TOP Travel Assistance for more than 25 euros per year (includes lack of gasoline, tire hole and replacement vehicle in case of failure, among other things).

At this point you forget you’re doing an insurance against unforeseen events that can happen and think that things only happen to others. Just worry about paying as little as possible by insurance.

1 – After a month you go to a very important meeting with a client and has a hole in the highway. You call the Travel Assistance, and the report that has a hole, the service informs you that it has no coverage. That’s when you remember what the agent suggested that coverage. You have two options: either change the tire alone (a) and threatens to smudge the new suit he bought in this state and it appears from the customer (after it warned that it would arrive later), or pay about 50 Assistance to the euro motorway concessionaire to make this work for you.

Balance this scenario: 25 euros spent more (coverage roadside assistance proposal costs 25 euros)

2 – After two months, going on the road behind a truck and a stone it cracks the glass. Go to a glass company and tell you that the glass can be repaired rather than replaced. It gets you for 50 euros. Remember that, for 20 euros, declined coverage for glass proposed by zealous agent.

Balance this scenario: 30 euros spent more (coverage of Glass is 20 euros). The financial loss for failing to adequately cover the contractor will have at 55 euros.

3 – Half a year since I cracked the glass. He did not ask the agent to include coverage of glass in the policy, because he thinks he already had his dose and will not happen anymore. Go on Highway passes a speeding car and heard a bang on the glass side. A stone shattered the glass. This has to be replaced. They are 120 euros. Had break glass only pay 50 euros of the franchise.

Balance this scenario – spent over 50 euros (cover glass costs 20 euros). The financial loss for failing to adequately cover the contractor will have to 105 euros.

4 – After a week, his car damaged and requires replacement vehicle for 3 days. The Travel Assistance reports that are not entitled because the coverage was not hired.

As there may be out of the car, going to a rent-a-car and rent a slight for 40 euros / day for 3 days, or 120 euros. I might add, to make it more “excited” that out of the rent-a-car, hit his rented car, being held responsible for the accident and pay the deductible of 1,000 euros (aiiii!!). Let’s not dramatize too much, ok?

Balance this scenario – spent over 95 euros (cover roadside assistance proposal costs 25 euros). The financial loss for failing to adequately cover the contractor will have to 220 euros.

In short:

- You did the insurance for 180 euros

- He spent the first scenario, 50 euros, assuming no soiled his hands and his delicate fact, changing the tire

- He spent the second scenario, 50 euros to repair the glass

- Spent in scenario 3, 120 euros

- Spent in scenario 4, 120 euros

He spent a total of € 340.00

To save this money would suffice:

1 – Hire insulated glass break – in scenario 3 only pay 50 euros of the franchise. In scenario 2, no

2 – Hire the best travel assistance including replacement vehicle in case of failure – would pay nothing in scenarios 1 and 4

For this, sufficient insurance to pay € 180.00 plus € 20.00 (broken glass) plus € 25.00 (Travel Assistance TOP). It was just over 45 euros / year, and € 295.00 spared accumulated stress with these scenarios.

Think seriously about it and face insurance as a protection for you, your family and property (health, life, auto, home, etc.). Talk to a good insurance agent to help you choose the best insurance in terms of coverage and price. Opt for the toppings. You’ll see what looks best.

You can read the article I wrote about the ” seven main aspects in Auto Insurance You Should Know ” before hiring a car insurance.

And please! If you buy a new car, ask him for good, which makes the Own Damage insurance (commonly and mistakenly called “all-risk”). There is nothing worse than undo the brand new car for a move that should not have done. I assure you that time will want to go back in time.

I have a client who has never had an auto accident 30 years here. This week, because of a miscalculated move, caused two minor injuries in a motorcycle who followed, but remained with the left side of the car badly damaged. Ok, you have car insurance and Own Damage with deductible 0%. He will have no financial loss, because I did it the safe way.

What I mean by this example is: the accident happens when least expected. Make sure the widest possible. The cheap comes out expensive, and can get expensive.