How to Find Cheap Car Insurance
Particularly cheap car insurance can be found every year before the termination date of 30 November. Especially if you have not changed your car insurance in previous years, you can sometimes save hundreds of euros with our tips.
Financial tip examines annually before and during the exchange season how the prices of motor insurance policies develop. Our car insurance comparison 2018 results in a clear strategy: First, find out the cheapest suitable car insurance on the comparison portals Check24 * or Verivox *. Then charge an offer with the direct insurance company Huk24 *. We explain how this can be done in the following seven steps.
By the way: You can also save well during the year in case you sign off your old car and allow a new one. Because then the old car insurance will end and you can look for a new, cheaper one.
Step 1: What car insurance do you need?
Every vehicle owner in Germany must have motor liability insurance – otherwise the car will not be allowed. By law, personal injury must be covered up to at least 7.5 million euros, property damage up to 1.12 million euros and property damage up to 50,000 euros.
Most insurers already offer a significantly higher amount of claims of a flat sum of €50 or €100 million in their basic tariff. For others, insured persons pay a small surcharge for the policy with such higher coverage amounts.
However, the car is not protected by motor liability insurance. For this reason, it is advisable for many cars to take out voluntary cascade insurance. You can choose from partial cash and full casco tariffs.
For these damages, the partial casco depends on:
Fire and explosion,
Storm, lightning, hail and flooding,
Clashes with hair deer (for example deer or wild boar),
Marmer bite on cables, hoses and wires,
Cable damage from short circuit.
The simple protection of the partial casco can be extended to damage caused by animals of all kinds (for example in the event of a collision with a dog) or the consequential damage caused by marten bite. When comparing to an online portal, you can choose the appropriate settings.
The comprehensive insurance company offers the protection of a partial insurance company and also covers damage to the own vehicle due to self-inflicted accidents as well as vandalism. As a result, the full insurance policy is usually the most expensive protection.
Whether and which cascade insurance makes sense, each driver has to weigh up. When refunding the accident costs, a cascade insurance policy starts with the current value of the car. If the car is already very old and has only a few hundred euros residual value, the partial insurance is not worthwhile, the liability policy is usually sufficient.
Especially for new cars, it is advisable to take out comprehensive insurance. Depending on the contract, this is even mandatory for some leasing agreements. For drivers who have been free of damage for three or more years and live in a favourable region, a full casco fare may even be cheaper than partial casco. Unlike in the partial casco, the insurance grants a free payment discount for accident-free drivers in the case of a full insurance scheme.
If you have taken out a cascade insurance policy, you should check regularly whether the protection still fits the car. After a few years, it usually makes sense to move from full insurance to partial insurance. Compare prices for both variants and calculate the difference against the value of the car.
The deadline for a change is usually November 30. On the day, you must have cancelled the old insurance at the latest and already completed the new rate. The new insurance will start from 1 January.
Step 2: What should be in the car insurance?
You should select the following tariff features on a car insurance calculator in order to include them in your car insurance policy:
Increased coverage-This only excludes tariffs that have 50 or 100 million euros as an insurance sum. With such cover amounts, you are protected against the financial consequences of also serious accidents. A financial tip study shows that most tariffs already offer this trait at no extra charge. Even those who explicitly look for a tariff with the lower statutory coverage amount will find few basic rates. It is therefore not worth forgoing increased coverage amounts, especially since the cheapest rates in our study always offer them.
Mallorca Police-This option increases the amount of insurance for rental cars in other European countries to German level. This means that you are well insured on holiday. Mallorca Police often no longer costs a surcharge today, according to our study. Few basic tariffs waive hedging. These tariffs were nevertheless not among the cheapest deals in the study.
In cascade insurance
Gross negligence-If the insurer waives the objection of gross negligence, he cannot cut his performance if, for example, you cause an accident after running over a red light. However, the car is not insured if you drive under the influence of alcohol or intoxicants or allow the theft of the car to be grossly negligent. Fares that exclude further, you should not choose.
The financial tip study shows that additional protection does not cost a premium on most tariffs. Even the cheapest fares had almost always included gross negligence. For the few tariffs in the test that offered variants with and without that clause, the price difference was only 2 percent.
Marten damage with consequential damage-Hose damage from a marten bite can become uncomfortably expensive, especially if the engine subsequently takes damage. Martens are also active in cities. However, reimbursement for consequential damages is often limited to 3,000 euros. This feature also includes most tariffs free of charge in the protection. The few providers offering fares with and without protection from consequential damage charge an average surcharge of just 2.9 per cent, according to the study.
Step 3: What is less important when it comes to car insurance?
The following tariff characteristics can be a useful addition depending on the individual situation, but may cost a significant surcharge:
Discount protection-In order to maintain the loss freedom class (SF class), it sometimes pays to agree on a discount protection. However, the clause makes it difficult to switch to another provider. The discount protection does not apply to the new provider, and when the SF class is graded, it also counts an accident in the past.
Extended Wild Damage-By default, the partial casco only pays for accidents involving hair wild, especially deer and wild boars. Especially in rural areas, the option “extended wild damage” is worthwhile, which then also covers collisions with cows or horses, for example. The “Animals of All kinds” option pays for accidents involving all animals. The clause is already standard. The few insurance companies that charge a premium for this increase an average of 2.2 percent surcharge for additional protection.
Car protection Letter-With a car protection letter, you can get help after a car breakdown. For example, the provider will cover the towing and accommodation costs if you are unable to use the car after an accident. Some letters of protection also pay for a rental car and offer personal services such as hospital return transport, medication supply abroad and, in the event of death, the assumption of funeral or transfer costs.
If necessary, you can also pay for breakdown service or towing aid yourself. If you still want to hedge against this, you have to choose between the vehicle protection letter and the automobile club. According to the Financial tip study, the protection letter costs an average of about 13 euros a year – but that reimbursement limits are often quite low. Automotive clubs offer more power against a higher price.
In the case of new cars, you can do without a letter of protection or the automobile club, because then the manufacturer’s mobility guarantee usually applies.
Driver protection insurance-Driver protection insurance is eligible for insured persons who do not have disability or accident insurance and are frequent drivers. She settles the loss of earnings and pays pain money in a self-inflicted or co-inflicted accident. Cheap policies are available for about 25 euros a year. It is not to be confused with the driver accident insurance, which we advise against.
You can do without this from car insurance
Insase-accident insurance-Occupant Accident Insurance covers the costs if one of your passengers is injured or killed. However, such damages are covered either by the vehicle liability insurance of the person responsible for the accident or by your own motor liability insurance if you build the accident. Occupant accident insurance practically only jumps in if, after an accident, the insurance of the cause of the accident does not cover the damage caused by driver evasion. In such cases, however, traffic sacrifice assistance also helps.
Driver Accident Insurance-It includes similar benefits to driver protection insurance. However, how much money you receive after an accident depends on the amount of cover you choose and the degree of possible disability – and not on the actual damage. Anyone who wants to make sure that they are fully secured in the event of a car accident should therefore prefer driver protection insurance. Private accident insurance protects against accidents, not only in the car. But even this is not suitable for everyone.
Free choice of workshop-It pays off if the insurance is allowed to determine the workshop – the insurance contribution is then lower. Owners of vehicles with a manufacturer’s warranty that is still valid or with leasing should definitely choose the free choice of workshop.
Step 4: How does car insurance comparison work?
Without a comparison portal, finding cheap car insurance is akin to finding a needle in a haystack. Anyone who queries prices from several insurers will be given a different amount by each. These can differ considerably.
The motor insurance calculators of the comparison portals promise a remedy: Because each insurer assesses the risk of a driver differently, they offer only one input of all relevant data a useful overview of the prices of many providers – but not all Provider.
Because no portal lists the prices of all insurance companies: Some providers only have a contract with one of the many portals, others do not appear on any comparison portal at all. Those who rely on a comparison portal alone therefore rarely find the really cheapest tariff. This is clear in our investigation: The best portal did not deliver the lowest price even at every second query.
The best portals
We looked at about 40 comparison sites in September 2018 before the car change season. In the case of four comparison calculators, we then collected contributions based on 32 sample profiles. In comparison, Check24 * and Verivox * portals delivered the best results. We repeated the portal query in October 2018. In doing so, we have queried the exchange season rates for our profiles. Details on the pre-selection of the portals and our evaluation can be found at the end of the text.
In order to be able to evaluate the portals, we chose the following procedure: For each profile, we looked at the best offer of the portal and the generally cheapest offer found. The less the car comparison calculators were above the best price, the better. In addition to the average price premium, we also looked at the maximum deviation from the cheapest price in our study. Because it is particularly unfavourable for the insurance customer to catch the offer, which is, for example, a quarter more expensive than the cheapest tariff.
Special case Huk24
In addition, we collected data from the Huk24 *. The Huk24 is a pure direct insurer and one of the largest motor insurance companies. However, it is not represented on the portals. It makes sense, therefore, to include this often very favourable direct insurer in the price comparison.
In our survey, the provider is doing quite well. The Huk24 is on average 5.1 per cent more expensive than the overall cheapest tariff found. For a single provider, that’s a decent value. With the maximum deviation, the Huk24 is well above the comparison portals at 28 percent. After all, the weakness of one individual provider does not compensate for the strengths of another, as is the case on a portal.
Still, those who don’t include direct insurers in their comparison may miss something. Because the Huk24 delivered fifteen times the cheapest deal.
In the table above, you can see the data from the recommended providers. All results of the comparison can be found in our test article.
Combine portal and direct insurers
Two comparisons increase the chance of good and at the same time cheap car insurance. First, calculate an offer on one of the two comparison portals. Then make a query at the Huk24 to see if there might be an even cheaper fare there.
Our experience shows that with this combination of comparison portal and direct insurers, you have the best chance of a particularly cheap car insurance policy. At the same time, in many cases, you reduce the likelihood of paying significantly more than necessary.
For example, in our September 2018 survey, the median deviation dropped from 3.5 per cent to less than 1 per cent and the maximum deviation from 13 per cent to 9 per cent when we queried prices at both Check24 and Huk24.
The October 2018 survey confirms these findings. Once the Huk24 * is included in the comparison combination, the average deviation drops significantly to the cheapest tariff. If you check out Check24 * and Huk24, you are very close to the cheapest fare, you pay on average not even 1 percent more. Put on Verivox * and Huk24, pay on average 1.4 per cent more than for the cheapest rate.
You also have a good grip on the risk of outliers with this approach: You pay an average of 8 percent at Check24 and Huk24, and 14 percent more at Verivox and Huk24 than for the best deal.
With the double comparison portal strategy, you pay an average of 5.3 per cent more. The outliers are, on average, even different from the cheapest tariff at 23 per cent.
But you should never do one thing: Just look at a single provider. The risk of not cushioning high outliers has been very high over the years in each of our tests.
Step 5: What do you do when comparing car insurance?
The new fare can be found like this: Open two browser windows on your computer and place them side by side on your screen. The results are best compared in the windows that open at the same time. For input, follow our recommendations above and follow instructions for Check24 *, Verivox * and Huk24 *.
Note that on a portal, the comparison is only complete once you have selected additional features in addition to the first results overview. At this point, many portals only ask for additional protection such as “Martian damage with consequential damage” or “increased cover amounts.” Also check to see if the tariff details we describe in step 6 of this text are eligible for you.
Cheapest fare isn’t always up
When comparing to Check24, one or two blue highlighted rates appear at the top of the results list. The portal told us that these were offers that offered “top performance” or “top price/performance” for the set criteria. Check24 describes why it highlights these rates for each search. The portal calls them “broker recommendation.”
In our September 2018 financial tip investigation, this broker recommendation was more expensive in spot checks than the cheapest outcome we found. This was confirmed in our investigation in October 2018. Even the cheapest rate meets our requirements for good car insurance, as all entered tariff characteristics are taken into account.
Verivox also presents advertisements at the top of the results list. This tariff also shows that it can go into the money properly. It is marked as an ad. In many cases, the tariff presented there is more expensive than the cheapest in the results list, as we determined through spot checks in our September 2018 investigation. Samples in October 2018 confirmed this result.
Step 6: What tariff characteristics should you look out for?
In the portals, above the results lists, there is a link “Compare fares.” There you will find detailed performance descriptions. Pay attention to the following features, if they affect you in particular: Special equipment-If the vehicle has extensive extras, the fare should cover special equipment to the extent required. Exactly what is defined as special equipment, the insurance sets out in the terms and conditions. A 2016 financial tip study showed that most providers co-insure special equipment up to 5,000 or 10,000 euros without a surcharge.
Renouncing deduction new for old-Especially with older cars, it’s annoying if insurance doesn’t cover the cost of new wear parts such as tires in the event of damage. If it waives the deduction, the insurance cover includes the cost of all spare parts. Often, however, the waiver does not apply to older cars.
Extended Elemental Damage-Those who live in a mountainous region or on a hillside protect their car from damage caused by avalanches and mures. How much Kasko insurance is made more expensive by this clause depends on where you live. In vulnerable regions, insurance companies are much higher in contributions than in other regions. On average, tariffs with expanded elementary damage coverage cost a good 28 percent more in our 2016 study. However, the range for the profiles we tested was between 0 and 45 per cent. It is also striking that only a few providers offer this additional protection at all. If you are looking for insurance with elementary protection, you often have significantly fewer rates to choose from.
New value compensation-Anyone who insures a new vehicle should make sure that the provider pays the new value of the vehicle for as long as possible in the event of a total damage. It is very good if the insurance is up for it until 24 months after the initial approval. Otherwise, you only get the time value, which decreases very quickly, especially for new vehicles.
In the same 2016 financial tip survey, we also looked at how much more tariffs cost with new price compensation. As a result, you pay an average of 10 per cent more than for fares without new price compensation. If, on the other hand, you only look at the cheapest tariffs for our sample profiles, a different picture emerges: There, on average, the premium was only 1.6 percent.
In most cases, good and still cheap full insurance rates ensure that new price compensation is free for at least twelve months. Anyone who attaches importance to a longer recompensation should compare specifically.
Step 7: How can you save on car insurance?
How much car insurance costs depends on how providers assess your individual risk of harm. The insurance companies create a risk profile based on a lot of information that each customer must provide when making an application. With many of these information, you can save with the right setting.
However, you should not make the wrong information. In the event of premeditation, there is a risk of contractual penalties. Also, report to your insurance policy as soon as a feature changes. Then it recalculates the post.
Excess: Own share depresses the premium
Through the deductible (SB), you as an insured person bear a smaller damage to the car itself. As a result, administrative costs are eliminated for the insurance company, which it passes on to its customers as a small discount.
For the partial casco, we recommend 150 euros in deductibles, as this is worth it on average for most motorists, as our bill shows.
For the full casco, most motorists choose 300 euros deductible. In principle, they are not doing anything wrong with that. Financial tip has calculated, however, that it can also be worthwhile to agree a higher deductible in the full insurance.
Keep the driver circle as small as possible
The spouse or civil partner is co-insured without the contribution costing more, according to a financial tip study. In addition, the larger the circle of drivers in the motor vehicle liability and full insurance policy, the more expensive it becomes. In a few cases, however, it is worth specifying the driver circle as inaccurately as possible.