What types of car insurance are there?
The provision of insurance for cars is divided into two main fields:
- liability insurance (also known as third-party insurance);
- full risk insurance (commonly known as own damage insurance).
However, remember that despite the latter being “against all risks”, not all insurers guarantee full coverage or cover all eventualities that may arise. Therefore, it is important to simulate car insurance and analyze in detail what guarantees are granted by a product of this type. However, these may vary between existing car insurance companies.
What is the offer of insurance for old cars?
Do you own a car that is 25 years old or older? Some Best car insurance companies offer a suitable product for your vehicle. To be considered a classic and be able to hire this solution, certain requirements may be asked of you, in addition to the minimum age of the vehicle. For example:
- Owner must be over 25 years old;
- Have a driving license for more than two or five years;
- Have a valid inspection of that vehicle;
- Have another vehicle for daily use with valid insurance. The classic car cannot be used daily.
Insurance for vintage cars is generally more affordable than for everyday vehicles. Giving your classic car less use is a determining factor for insurers to consider this vehicle having fewer associated risks.
As with daily-use cars, the premium will vary depending on the type of coverage contracted and, in the case of classic cars, you can even enjoy exemption from the Single Circulation Tax (IUC). In addition, vehicles manufactured before 1960 are exempt from Mandatory Periodic Inspection (IPO).
How can I get car insurance?
First, knowing all the car insurance companies on the market is essential. Then define which coverages and the premium you are willing to pay. Please note that the more coverage you include in your policy, the higher your premium will be.
Have questions about how much car insurance costs? So the best thing would be to simulate car insurance to get an idea, according to your profile and vehicle characteristics, which premium is associated with the product you want to join.
However, it is essential that you carefully read the pre-contractual and contractual information relating to the product you are about to subscribe to. When taking out car insurance, there are several documents that you should expedite for this purpose:
- Documents of the policyholder: valid citizen card or identity card, as well as a valid driving license;
- Vehicle documents: booklet or single vehicle document, the title of property registration, and the inspection form.
How do I know if my car is insured?
One of the ways to see if the car is insured is through the license plate. For example, if someone hits you in your car and runs away, but a witness has fixed the license plate, you can, through this, consult the “registration” of that vehicle. When entering the registration number on the website or in the app “Do you have insurance?” from the Insurance and Pension Funds Supervisory Authority (ASF), you can consult the data relating to the vehicle that caused the accident:
- Name of the insurance company for cars;
- Policy number;
- Insurance start date;
- Insurance end date.
With this information, you can contact the insurance company where the vehicle is registered and claim compensation for the damage caused.
This tool can also be used to check the history of a second-hand car you are considering purchasing.
What documents prove the validity of car insurance?
The premium payment for car insurance varies depending on the entity with which the policyholder signed the contract.
As a general rule, the premium can be paid annually or in monthly, quarterly or semi-annual instalments. When agreeing with the insurer on the amortization through fractionation, the price of car insurance will be diluted by several instalments, depending on the chosen modality.
The disadvantage of paying in instalments is the possibility of forgetting to pay off one of these amounts. If you have a claim and your policy payment is not up to date, your insurance company may not cover the costs associated with that accident.
However, one way to avoid forgetting to pay car insurance is to choose direct debit as the payment method.
Can I transfer car insurance?
There are two scenarios in which it is possible to transfer your vehicle insurance:
- When buying a new car;
- When switching to another car insurance company.
In the first scenario, the customer should contact the insurer and negotiate the conditions for his new vehicle. Generally, this transfer process is free of charge, but it may involve other costs arising from the new conditions relating to the new car. It should be noted that you have up to 120 days to transfer the insurance to the other vehicle.
In the last scenario, you can only carry out this transfer if you have reached the end of the contract or, if you intend to do so before that period ends, you can only do so by presenting the cause.
However, it is important to warn that, when selling your vehicle, it is not possible to transfer car insurance to the new owner. In practice, the contract previously signed ends at 24:00 on the day of the vehicle sale, and the insurer must be aware of the deal.
How to cancel car insurance?
Before deciding to cancel the contract, you must read the information regarding the cancellation process that must appear in your policy.
If you have a one-year contract, only at the end of that period can the customer decide whether or not to renew the policy? If this is not your wish, you must notify the insurer of your intention to terminate the contract at least 30 days in advance. You can also stop paying the car insurance premium, which will be cancelled.
The car insurance company only refunds the premium amount in situations of a total loss of the vehicle or as a result of the sale of the vehicle.
However, if you want to cancel the contract before it ends, you can only claim cause, which must be duly substantiated. This scenario can occur when the insured car is written off, or the vehicle registration ceases to exist. Cancellation for just cause can be done at any time. If the premium for the entire contract year has already been paid, the customer will receive a reversal, that is, the amount the policyholder paid in advance and did not use.
In the context of a sale, the customer must deliver to the car insurance company the green card and the respective label, proof that he sold the vehicle and the cancellation form (which you can request from the insurer).
What is the best car insurance?
Finding the best insurance for your car is a challenging task. On the one hand, a wide range of entities offer this type of product and offer different premiums for the same coverage, namely the mandatory minimum civil liability guarantee. On the other hand, the value of the premium will depend on several factors, including:
- Driver’s age and profile (including claims history and driving experience);
- Vehicle characteristics (brand, year of manufacture, existence of an alarm system);
- Zone of residence and place where it is parked;
- Type of coverage to be contracted;
- Deductible (the higher, the lower the cost of insurance);
- Bonus System (Bonus and Malus, which is reflected in the increase or reduction of the insurance premium, depending on the history of claims);
Of course, the less coverage you hire, the easier it will be to have cheaper car insurance. Considering your needs, you should consult the offers of all entities and try to simulate car insurance. By comparing the entire market, it will be easier for you to get the best protection at the best price.