Car insurance: five tips for choosing the right policy

There are three different categories of car insurance contracts, each depending on the level of protection you want for your vehicle.  Article written by LesFurets, a Challenges partner.

PARTNER OF CHALLENGES

Mandatory since 1958, car insurance is now the subject of fierce competition from insurers, who vie with each other with special offers to attract new customers. Here’s a five-point guide.

There are three different categories of car insurance contracts, depending on the level of protection you want to give your vehicle.

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Third-party car insurance is a civil liability policy that covers all material or physical damage inflicted on others. It is the minimum guarantee – both in terms of coverage and price – to subscribe to for all vehicles, including those not running or not yet registered. However, in the event of an accident, any damage caused to your car will be your responsibility.

The improved third party takes over the terms of the previous contract by offering policyholders additional coverage, such as car theft, guarantee of bodily injury suffered by the driver in the event of an accident whether or not the driver is at fault, glass breakage, legal protection, etc. A true “à la carte” contract, it allows you to choose exactly the options that suit you, but be careful of the price, each addition is expensive!

The “all risks” contract insures you against all material and physical damage caused during an accident, whether you are responsible or not, and gives you a reduction in the price of excesses.

What are the things to check before choosing car insurance?

To find the right plan for your needs, take stock of your habits! Do you use your car every day? How many kilometers do you travel each year? Do you have a new vehicle? How much is it worth in the Argus? These are all questions that will help you avoid paying too much for your car insurance!

Check the amount of the deductibles carefully

Have you been won over by this new insurer’s “unbeatable” prices? But what are the deductibles they offer  ? Policyholders often fail to check this crucial point before taking out new car insurance.

Use an online insurance comparison tool

In a market as competitive as car insurance, using an online comparison tool should become second nature! Simple and convenient—just enter your criteria: bonus/penalty, department of residence, etc.—to get the best quotes—it will allow you to make significant savings!

How to cancel your car contract?

Just like canceling a comprehensive home insurance policy, canceling your car insurance requires specific steps. Two months before your policy’s expiration date, you must send a registered letter to your insurer to inform them of your intention to terminate your subscription. However, the law allows you to change your policy outside of this deadline under certain exceptional conditions: price increases or changes in your personal circumstances (provided it has an impact on your premiums). Finally, if your insurer fails to remind you of the cancellation deadline on your annual expiry notice, you have the right to terminate your policy at any time!