The Most Frequent Car Insurance ‘traps’

Insurance companies usually always have some ‘secrets’ in their hiring, for their business benefit. Therefore, when choosing a policy, the most widespread recommendation is to read the fine print carefully. What are the most common insurance ‘traps’?

Are all insurance companies the same?

This is a stigma that tends to persecute those who participate in this type of activity, an idea well anchored within the collective imagination . Most insurers have a ‘trick’ that benefits them. Exceptions only serve to confirm the rule.

In a totally pragmatic sense, the business of those who sell a policy is to save as much as possible when it comes to answering for coverage. Which does not necessarily imply a bad service, nor a deception.

There are better companies than others. As well as those that are, almost implausibly, very tricky. To avoid falling victim to illusions, you must pay close attention to what is offered.

In this necessary precaution, it is not only necessary to read all the letters, including the small ones. Also repair both what is included in the contract, and what does not appear in writing.

‘Low Cost’ options: the best ‘traps’ of car insurance?

It’s a fact: most consumers also make saving as much money as possible among their priorities.

For these reasons, policies that go beyond Civil Liability are so sought after. A car is a good as necessary as it is expensive; Taking out insurance is a way to protect and safeguard an investment.

Low-cost options have garnered the majority of negative reviews regarding car insurance ‘cheats’. Policies that operate under this regime often include fanciful or deliberately misleading clauses. Among the most common are:

Mechanical coverage at all times

This is one of the aspects most sought after by vehicle owners when taking out insurance . The security of having technical assistance at all times, especially in emergencies. However, the important limitation is that in many cases you have to give up the trusted mechanic.

To enjoy the offer, the car can only be serviced by an authorized service center. Otherwise, the insured must pass the insurance and cancel the revision or repair in cash.

Irresistible franchises

All Risk policies can be excessive on cars that are more than five years old. For this reason, Franchises are often the most popular options for ‘veteran’ vehicles.

One of the most common car insurance ‘traps’ is selling these services at ridiculous prices. But in the event of claims, the policyholders have to assume the payment of extra fees  that are usually well above the original value of the contract.

2 × 1 promotions

Discounts are also offered that at first glance seem really irresistible. As is the case of savings of up to 50% in the acquisition of a policy that enjoys wide coverage.

However, the conditions to qualify for these “promotions of opportunity” are usually very exclusive. In most cases, it only applies to men, between the ages of 50 and 65. They are drivers whose license must be fifteen years old and have a clean record of any accident.

Automatic renewal

This is one of the most delicate points with low cost policies. Contracts that during the first year of validity offered a very economical price, but that, when renewed for a second fiscal year, can up to five times their value.

In these cases, everything that car owners managed to save during the first 365 days, they end up paying in excess of during the next 12 months.

Additional services

Low Cost car insurance also usually includes coverage for additional services, such as managing fines. They also allow adding, without too many obstacles, an additional driver to a policy or issuing copies of documents expeditiously.

What is not often that insurance companies bother to clarify, while not necessary, is that these services involve additional payments. And sometimes it is about extra amounts of money with very large amounts.