As a customer, you are often much more familiar with the equipment of your car than with the contents of your car insurance policy. You can explain what TCR is, why the car has ABS and whether 4WD is permanent or situationally engaged.
But how does it look with the motor vehicle insurance?
The difference between discount protection and discount saver, the GAP coverage or own damage – all these are often the famous "Bohemian villages" for insurance customers. On the Internet there are a variety of online calculators, which are used as support for the most favorable offer. Only more than a pure price comparison comes out there rarely. The differences in the insurance conditions are noticed only in the case of damage, but unfortunately it is then too late.
Therefore I have written down the most important performance points as a detailed explanation, so that you can compare these points in the insurance conditions of your offer.
Of course, the car insurance must be favorable, but you must also check what you buy. I therefore recommend that you at least work through these explanations, filter out the points that are important to you and then compare the proposals from at least three offers with them.
Explanation of the performance points
I want you to understand what a tariff can offer you. Because many terms from the insurance world can be confusing for a customer and lead to misunderstandings. On the following pages I therefore describe the individual performance points around the car insurance a little more clearly. If you still have questions, please do not hesitate to contact me.
Motor vehicle liability insurance
The motor vehicle liability insurance as a compulsory insurance protects you against claims for damages under civil law if you damage others with your vehicle.
Example 1 – Personal injury: When turning right, you overlook a pedestrian who wanted to cross the road when the pedestrian light was green. In the collision with your vehicle and the subsequent fall on the road, the young man suffers bruises and a fracture of the wrist. The treatment costs incl. Transport. Stay in the hospital amount to more than 10.000 Euro. Transport and stay in the hospital amount to more than 10.000 Euro. You lose control of your vehicle in icy conditions. Slipping into a resident's garden fence. The repair of the wooden fence elements as well as the masonry fence posts is insured for more than 2.000 euros.
Insurance sums and statutory minimum coverage sums According to the Compulsory Insurance Act (PflVG) §4 paragraph 1-2, the legislator prescribes the following minimum insurance sums for motor vehicles:
– 7.5 million for personal injuries. Euro – for property damage 1,12 Mio. Euro – for pure financial losses 50.000 Euro
Unless a higher sum insured is explicitly agreed in the policy, the minimum coverage corresponds to the maximum amount that an insurance company is obliged to pay in the event of a claim. But there are also insurers and tariffs that offer insured sums of up to 100 million euros. Euro offer.
To note: For the policyholder or one of the co-insured persons (owner, proprietor, driver…) as the driver of the vehicle, there is NO insurance coverage via the motor vehicle liability insurance of the driven vehicle! If, in the case of a self-inflicted accident, the consequences of the accident (invalidity, etc.) are not covered by the deductible, there is no entitlement to benefits from the liability insurance of the insured vehicle.) occur with you as the driver, there is no claim for benefits from the liability insurance of the insured vehicle. To cover these risks, I recommend a driver accident insurance, a private accident insurance, occupational disability insurance, functional disability insurance or similar as a separate insurance coverage.
Comprehensive insurance (general)
Comprehensive insurance compensates you for damage caused by the damage, destruction or loss of your own vehicle. Also insured are certain parts, insofar as they are installed in the vehicle, such as e.B. A sound system or a navigation system. Property transported by the vehicle is not covered by comprehensive insurance. Such damages can be covered by the household insurance (depending on the tariff) or by a transport insurance.
Partial vehicle insurance (partial casco) Here you have basic coverage and are covered for:
– Damage caused by fire or explosion – Damage caused by theft, robbery, embezzlement and unauthorized use by third parties – Damage caused by storm, hail, lightning and flooding – Damage caused by (roof) avalanches – Damage caused by collision with (wild) animals – Damage caused by animal bites and consequential damage – Damage to wiring caused by short circuit – Glass breakage damage
As a rule, a deductible of 150 euros or 300 euros per claim is agreed in the case of partial cover insurance. The amount of the deductible will affect your premium.
Comprehensive vehicle insurance (fully comprehensive) Comprehensive insurance completes the protection for your vehicle. First of all, the fully comprehensive insurance includes the benefits of the partially comprehensive insurance. In addition, however, also:
– Damage to own vehicle in the event of an accident – Malicious damage by third parties (vandalism)
Damage due to wear and tear, as well as operational damage, brake damage and pure breakage are not insured. A deductible can also be agreed for fully comprehensive insurance, which is usually 300 euros or 500 euros per claim. Again, the amount of the deductible affects the amount of the premium.
Motor vehicle environmental damage insurance Motor vehicle environmental damage insurance pays out in the event of public law claims for the remediation of environmental damage in accordance with the Environmental Damage Act (USchadG) caused by an accident, breakdown or accidental disturbance in the use of the vehicle.
Type classes For each of the 15 or so.000 car models in Germany there is a type class for the liability, the partial and the comprehensive insurance. These reflect u. A. Reflect the claims history of the vehicle types over the past three years and are reviewed and re-determined annually by an independent trustee. Also the cost of any repair. Spare parts prices have an influence on the classification of a vehicle. The type classes are different for the individual types of insurance. It is therefore not the case that a large car is automatically classified in a higher type class. Often, the typical "beginner cars" are also rated rather high. The level of type classes significantly affects the premium to be paid. Depending on the development of damage for a particular vehicle, the type class can rise or fall over the years.
Regional classes The place of registration also influences the insurance premium. The regional classes show the claims history of the last five years in the individual German registration districts. They are reviewed annually by an independent trustee and reset market-wide. The regional statistics for comprehensive insurance also take into account local characteristics such as flooding, hail or theft frequency.
Protective cover Free assistance from the insurer in the event of a breakdown, accident or theft of the insured vehicle. This can be: breakdown service, towing, overnight stay. The car protection letter is an independent part of the car insurance contract, therefore its benefits have no influence on the no-claims bonus class. Depending on the scope of the cover (depending on the insurer), you may also be entitled to personal benefits, which may also apply to air or rail travel.
International insurance card (green card) If you carry an international insurance card in your vehicle, your insurance cover in the motor vehicle liability insurance also extends to the countries named there, insofar as the country designations are not crossed out. When driving abroad, you should therefore always have the green card with you as confirmation of insurance.
Free choice of workshop / workshop commitment in the event of a claim (comprehensive damage) In the case of tariffs with workshop commitment, you as the policyholder waive a free choice of car workshop in the event of a claim, d. H. You agree to visit a partner workshop of the insurer. For this you will receive i. D. R. A premium discount, but are obliged to have the repair carried out in the workshop prescribed by the insurer. If you then have your vehicle repaired in a workshop other than the one specified by the insurer, you will have to accept z. T. High deductions in the provision of services by the insurer or a higher deductible. In addition to a premium discount, however, you can also benefit from a number of services, such as. B. Benefit from the free use of a rental car for the duration of the repair.
Insurance cover in the event of gross negligence (in comprehensive insurance!) A small carelessness, if you are distracted for example by changing a CD, can have severe consequences. Not all insurers grant full insurance coverage for this case, but refer to gross negligence. If the insurer waives the objection of gross negligence, the full contractually regulated extent is paid. The liability insurance provides i. D. R. Always – except, of course, for driving under the influence of alcohol or drugs. Co-insurance of vehicle free of charge-. Accessories up to a predefined value. Usually already factory fitted sound systems or navigation equipment etc. Also insured. The individual, insured vehicle parts are described by the insurance company in the list of co-insured vehicle parts and accessories. Special installations and subsequent conversions usually have to be applied for separately.
GAP insurance for leased or credit-financed vehicles In the event of a total loss, the residual lease claim or the residual financing amount is often higher than the replacement value reimbursed by a "normal" car insurance policy. The comprehensive insurance can be extended for an additional premium by the "GAP coverage", with which this coverage gap is closed. Example: Your financed or leased vehicle had a value as new of 42.000 euros. After two years you have an accident that results in total loss of your car. Although the bank still has a residual claim of 35.If the value of the vehicle on the books is less than EUR 000, the vehicle insurance will only cover the residual value determined by an expert, i.E. 28.000 Euro – the difference of 7.000 Euro would now have to be paid by you. The inclusion of "GAP coverage" in your motor vehicle insurance policy takes care of this financial "gap" for you.
Compensation for new value If your vehicle is stolen or suffers a total loss, the insurance normally only compensates the current value, and not the complete new price. If you have also taken out this module and are also the first owner of the vehicle, depending on the insurance company and tariff, you will be reimbursed for new value for a certain period (i. D. R. Min. 12 up to 24 months) from the day of the first registration granted. Since new vehicles have a significant loss in value, especially in the first year, such a tariff thus gives you the security of not having to give up anything on the replacement vehicle. If a new value indemnity has been agreed, the benefit limit increases to the new price of the vehicle, i.E. To the purchase price to be paid by you for a new vehicle of the insured type or, if the type of vehicle is no longer manufactured, for an equivalent type of the same design.
Purchase price compensation This module guarantees that even in the case of a used vehicle, in the event of total loss or loss within a fixed period after purchase (i. D. R. 6 to 18 months), not only the value of the vehicle immediately before the damage, but the current replacement value of a vehicle with the same condition as when purchased is reimbursed. The replacement value calculated by an expert at the time of registration is reimbursed, based on the condition of the vehicle immediately before the damage occurred.
Rental vehicles abroad (Mallorca policy) This is an additional liability insurance for privately rented vehicles abroad that are subject to insurance, usually limited to other European countries and countries bordering the Mediterranean Sea. Purpose: If the liability sum insured for the rented vehicle is lower than the amount of the damage, the renter of the vehicle must pay for the difference. In this case, the Mallorca policy will cover you (up to the amount of the coverage taken out in Germany for your car insurance contract.
Extension of natural hazards, e.B. On roof avalanches This is a coverage component in the partial coverage insurance policy. It includes the co-insurance of damage caused by the direct impact of avalanches (from mountain slopes), a landslide or (depending on the tariff) also roof avalanches. This benefit falls under the partial cover insurance (no SF downgrading). Not offered by all insurance companies.
Waiver of "new for old" deduction The insurer waives the deduction when settling a claim, i. D. R. On presentation of the repair bill, on a deduction of the cost of spare parts and painting corresponding to the age and wear and tear of the vehicle.
Animal bite/ marten bite damage The insurer covers costs for damage to cables, pipes, hoses, rubber sleeves and insulation materials caused directly to your vehicle by marten or other animal bites (depending on the tariff).
Consequential damage Animal bite/marten bite damage A severed coolant hose can cause the engine to overheat. In extreme cases, the engine has to be replaced. With installation, four- or even five-digit sums are quickly reached. If a connection between the animal bite and the engine damage can be clearly proven, the insurance will pay, provided that animal bite consequential damages are insured. The simple clause for animal bite/marten bite damage would not be sufficient.
Extended game damage clause In the partial cover insurance, coverage for damage caused by collision of the insured vehicle with animals according to the Federal Hunting Law (deer, wild boar, fox, hare etc.) included with all insurers. Expanding the wildlife damage clause extends the list of animals beyond the standard, z. B. On animals of all kinds (u. A. Free-roaming grazing animals, large wild birds, dogs, etc.).
Performance update Performance improvements of future General Conditions for Motor Insurance (AKB) automatically apply at no additional cost to existing customers in the old tariffs also insured. These benefit improvements also apply to the optional benefit modules, if these are contractually agreed in the existing contract for an additional premium or surcharge. As a rule, you will be informed about it with a separate letter or in the premium calculation.
Driver accident insurance In the event of a self-inflicted accident, personal injuries to the driver are not insured. The driver accident insurance closes this insurance gap. The "disadvantage" is, however, that this accident insurance only applies to accidents with the insured vehicle, leisure and work accidents are not covered. Thus, such a driver accident insurance from the scope of benefits can not replace a private accident insurance detached from the motor insurance, but rather complement it. Occupational disability insurance or functional disability insurance also offers you more comprehensive protection, as not only the consequences of accidents are insured, but also illnesses and other causes.
Passenger accident insurance This additional module allows you to insure your passengers against the consequences of an accident with the insured vehicle. You can determine the sums insured individually. In today's world, passenger accident insurance makes only limited sense, as the claims of your passengers are covered by the motor vehicle liability insurance in the context of personal injuries.
Foreign damage protection insurance If you suffer an accident with your vehicle abroad in which the other party to the accident is at fault or liable, your motor insurance will compensate for the damage – as if the other party to the accident were also insured with your motor liability insurance company. You can make a claim directly with your insurance company. Indemnified according to German law. In road traffic law issues, the law of the country where the accident occurred is applied. Benefits from a third party, especially from a foreign motor vehicle liability insurer, are credited against the insurance benefit
Traffic legal protection insurance Motor vehicle insurance companies often offer traffic legal protection insurance at discounted rates. Significantly more extensive protection is often offered by separate legal protection policies, which provide you with z.B. Can be combined with private, professional and/or residential legal protection according to your needs.
Own damage coverage This is the settlement of damages after the collision of own vehicles outside the own property via the liability insurance. Depending on the insurer and the tariff, the insurance also covers damage that occurs on your own property or to your own buildings.
Rental car If your vehicle suffers an accident (and is no longer roadworthy), a total loss or is stolen and you as the policyholder therefore rent a replacement vehicle of the same or lower class in Germany, the insurer will pay the rental car costs for the period of the replacement purchase. Either the maximum period for which the costs for a rental car are covered or a maximum sum for the rental car costs is specified.
Downgrading in the no-claims class The no-claims class helps determine how high the premium for comprehensive motor vehicle insurance or third-party motor vehicle insurance will be (partial coverage is not affected by this regulation). Those who have been driving accident-free for a long time have a high no-claims class (SF class). After a claim settled via motor liability or comprehensive motor insurance, your SF class is reduced on the basis of the downgrading table set by the insurer.
Important: Not the cost of the accident is decisive for the downgrade, but the number of accidents. Several small accidents can result in a higher rebate loss than one large claim. Cheap providers often downgrade faster, d. H. Over several SF classes, back. The reclassification always takes effect on the first premium due date in the new calendar year. After one year without a claim settled by the insurance company in the motor liability. In the motor vehicle comprehensive insurance, you will be classified in the next higher SF class at the next main due date. They come z. B. From SF 10 to SF 11. Prerequisite for the better classification is, in addition to a claim-free history, that the contract was in force for at least 6 months in the year. These 6 months can also be spread over the year z. B. For a winter car from January to March. Then again from October to December. Winter car from January to March. Then again from October to December. Even for vehicles with seasonal license plates, the 6 months must be observed during a year.
Repurchase of claims It is not always worthwhile to have every claim settled by the insurer, because a small claim can have a negative impact on premiums for a long time. When the insurer settles an opposing motor vehicle liability claim, the amount of compensation is often only known after the settlement has been completed. To allow you to self-adjust, the insurer is obligated to indemnify you if the claim is below a certain limit (z. B. 500 euros) about the possibility of buying back claims. After this announcement, you i. D. R. Six months time to buy back the already settled claim to avoid a SF downgrade in the following year.
Discount saver In the discount saver system, customers who have reached a high SF class (usually SF 25) are given a discount after a claim z. B. Only downgraded to SF class 23. Since the same premium rate applies to both SF 25 and SF 23, the downgrading does not result in an additional premium for you. In many current insurance contracts, the discount saver is either no longer included at all or only when SF 35 is reached.
However a downgrading in the no-claims class cannot be prevented by the discount saver. This means: The insured loses claim-free years, but is downgraded in the SF class only so far that the downgrade does not lead to a higher premium.
Discount I. D. R. From SF class 4, customers can protect themselves against a downgrading of their SF class after a settled claim with discount protection.
Depending on the provider and the selected tariff model, up to three claims per year are free of downgrading. However, in the year following the loss, even the no-claims class upgrade will not be implemented. Discount protection ensures favorable premiums in car insurance Many insurers offer discount protection for car insurance as an additional rate option that can be taken out for an increased premium. The discount protection can be. Agreeing on comprehensive motor vehicle insurance. In the partial cover insurance a discount protection would be unnecessary, since customers cannot be downgraded there after a damage case. If a customer who has agreed discount protection in his or her car insurance causes a third-party or fully comprehensive claim, there is no downgrading of the no-claims bonus class. The customer is treated by the insurance company as if there had been no claim at all. For some insurers, that even applies to multiple claims per year.
Who is entitled to a car insurance with discount protection? Excluded are usually contracts where young drivers (usually under 23 years old) drive the vehicle or are policyholders. The discount protection can be included for it with almost no insurer. In most cases, no-claims class 4 or even 6 must also already have been reached.
Bad surprise when changing insurers If the discount protection in the car insurance has already been used, you have to be careful when changing the insurance. While the previous company continued the no-claims bonus without taking the damage into account, the no-claims bonus you would have experienced without discount protection is confirmed to the subsequent insurer. So if you change insurers after a claim, you will be downgraded normally and get a worse no-claims bonus. This has a negative effect on the premium to be paid.
The discount protection is an interesting additional option for car insurance, which insurers also use to retain customers after damage claims. While the premium remains favorable with the current provider, other insurers must offer significantly higher premiums because the loss must be taken into account.
For whom is discount protection in motor vehicle insurance worthwhile?? A car insurance with discount protection is especially worthwhile for customers who do not yet have a high no-claims bonus. The larger the no-claims bonus already is, the lower the additional premium in third-party and comprehensive car insurance will be after a claim. Whether the additional premium for the agreement of the discount protection is justified, must decide each customer for itself.
I hope your head is not smoking yet and you are still at it. These are all points about car insurance that should be taken into account when requesting a quote. You will find the solutions in each case in the insurance conditions.