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Cutting back on car insurance a good idea?

October 7, 2022

Being able to live normally

Isn’t it something, the prices of groceries have risen sharply, you pay through the nose for energy and then there’s the ‘party’ at the fuel pump? In short, inflation does not make us happy. In short, these are not fun times in terms of the cost of just living normally.

Car insurance: third-party, limited motor insurance and fully comprehensive motor insurance

There is probably a car on the curb at home, too. As you know, car insurance is mandatory to drive it on the street. In the world of car insurance, there are three basic levels, namely WA, WA Limited Casco and WA Full Casco.

WA car insurance

WA is the third-party liability coverage. This coverage pays for damages if you are liable for damages you cause with your car to others, for which you are responsible. WA is the minimum level of insurance.

WA Limited Casco and WA Full Casco

With the WA Limited Casco you are also insured for other damages, such as windshield and burglary damage. Want maximum car insurance? So that damage is also paid for if you damage your own car? Then choose WA Fully comprehensive coverage, also known as all-risk. But you’re probably already aware of that.

Cut back on car insurance

In this case, you would like to cut back on your expenses, because with all those increased housing and living costs, it’s nice to be able to catch your breath financially. You want to cut back on your car insurance? That can save quite a few dollars. Surely the difference between WA or all-risk saves tens of euros per month. Suppose the price difference between these two insurances is 40 euros, so in theory you can save 480 euros a year.

Consider the consequences

Sounds all pretty interesting, but don’t scale back too quickly with your auto insurance, because be sure to realize the consequences with your coverage. A brand new car you prefer to insure not just with third-party liability, but preferably all-risk. After all, the car is still worth quite a bit.

So everything depends heavily on the age of your car. How much the car is worth. And how strongly you are attached to your means of transportation. It would be a shame to insure a brand new car one step down immediately. Because then, if you do get involved in an accident, you’ll be stuck with the bottom line and have to pay for the costs yourself.

Listing pros and cons

So list the pros and cons carefully. One advantage, of course, is that you will have some euros left over per month, but a disadvantage is that with less comprehensive car insurance, you will have to pay for most of the costs yourself if you are involved in an accident, no matter how big or small. And those deductibles are often already higher than the amount you would save on an annual basis by choosing third-party rather than all-risk.

Cheap car insurance Still, looking around for cheaper car insurance can’t hurt. A search online quickly yields some interesting options. Calculating car insurance, for example, is very easy these days, let alone buying car insurance. Online, it’s all a piece of cake. You see right away where you stand, what the price difference is between different insurance policies.