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Focus on insurance: Changing seasons for car insurance: Who really needs comprehensive insurance | message

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Motor vehicle liability insurance is mandatory

In Germany, car insurance is required by law. Every vehicle owner must have a motor vehicle liability insurance so that their car can be registered. Compulsory insurance must cover personal injury up to at least 7.5 million euros, property damage up to 1.22 million euros and property damage up to 50,000 euros. Most insurances cover these sums of damage or offer a corresponding policy for a small surcharge that includes higher amounts of cover. However, your own vehicle is not insured by the motor vehicle liability insurance and in most cases it is advisable to take out additional comprehensive insurance. You can choose between partially comprehensive and fully comprehensive tariffs. At the end of the year, as every year, the changing season for car insurance companies starts and customers can cancel their contracts by November 30th and take out more suitable or cheaper insurance for their vehicle. We’ll tell you who really needs fully comprehensive insurance, in which cases it is better to fall back on partial comprehensive insurance and when liability insurance is sufficient.

Fully comprehensive or partially comprehensive?

In most cases, it depends on the vehicle whether partial or fully comprehensive insurance makes more sense for the insured. As a rule, however, it is advisable to take out fully comprehensive insurance for new vehicles for up to five years, while coverage with partial comprehensive insurance is often sufficient afterwards. However, if your car is a bit older and has only a low value, it is better to forego comprehensive insurance entirely. The insurance conditions for partial comprehensive insurance often stipulate that in the event of damage, only the current value, i.e. the exact amount that your car is still worth at the time, will be replaced. The older the car and the worse its condition, the lower it is. Therefore, in most cases, comprehensive insurance is not recommended for very old vehicles and it is sufficient to take out motor vehicle liability insurance. The exception to this, of course, should be vehicles whose current value could even increase (e.g. oldtimers).

Many car owners are now using the changeover season to switch from a more expensive fully comprehensive insurance to a cheaper partially comprehensive insurance. However, it is advisable to check beforehand whether the existing no-claims discount does not speak in favor of continuing the fully comprehensive insurance and foregoing a change. Because the partially comprehensive insurance does not include a no-claims discount. The no-claims class is one of the characteristics in motor vehicle insurance that has a significant influence on the amount of the premium. The longer you are on the road as a driver without using your provider, the more the insurance will reward you with a discount.

Before you take out insurance, you should do your research, because the premium differences between fully and partially comprehensive insurance are often smaller than many drivers assume. Depending on the vehicle type, the place of residence and the no-claims class of the owner, the prices differ slightly and in many cases are close together. If you finance a car through leasing or a loan, it is always advisable to take out fully comprehensive insurance. Be sure to compare the tariffs beforehand on more than one comparison portal on the Internet in order to find the right insurance for you.

Isabell Tonnius / Forex-news.com.net editors

Image Sources: Refat / Shutterstock.com



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