Many of us often say that we have an extra member in the family, and no, we are not talking about our pets, but about our beloved vehicles. We all know how much effort it cost us to have that car or motorcycle, that's why we try to give them the best possible treatment by taking out the car and other vehicle insurance.
Repairs, tire changes, periodic cleaning... but what about insurance?
Having a coverage plan for our vehicle is like enrolling a family member in a medical expenses plan: we don't know when we will need it, but it gives us the peace of mind of knowing that we have a backup in case of any eventuality.
The same thing happens with vehicle insurance: we will never know when an accident will happen (and we hope it never does), but it will always be better to have the support that can cover a light collision to a total loss.
Let's get down to details of these very important aspects that you must always know about the advantages and disadvantages of insurance institutions.
Advantages of car insurance
- Full security, peace of mind, knowing that you have technical and legal support in case you need it at any time.
Protection and assistance in case of theft, traffic accidents, or damage to third parties.
- You have the possibility to avail yourself of various options to extend the coverage of your policy in case you require it.
- We will not have to worry about the cost of repairing our vehicle.
- Cover the cost of the car in the event that it is declared a total loss.
- It will provide a certain amount of freedom and support for our vehicle.
- Driving with a sense of peace of mind allows us to drive more relaxed.
Disadvantages of car insurance
- Having to pay for the policy even if you have not used it.
- In the event of an accident, the insurance company charges a deductible.
- It is calculated according to the type of insurance you take out.
- Therefore, the lower the premium, the higher the deductible and vice versa.
- Insurance policies have an infinite number of points in which the insurance company is not responsible for damage to your vehicle or for partial or total loss.
- Insurance companies are not liable if, in the event of an accident, it is proven that you, as the driver of the vehicle, did not have a driving license.
- Another point against you is if you were driving while intoxicated or under the influence of illegal substances.
- Be careful if you do not provide your details correctly.
- The insurance company is probably not obliged to take responsibility in case your car is involved in an accident.
- It is very likely that for several months or even years we will be paying the premium without using the services of the company.
- You have to know how to read clearly, there are very specific clauses and articles that you have to pay attention to in order to know exactly in which situations you are protected and in which you are not.
I hope that with this mini guide of tips I have been able to tell you what are the advantages and disadvantages of car insurance so that you have it clear before hiring it.
Advantages and Disadvantages of the Policies
It is always important to know and be informed when one acquires a service, whether insurance or any other always has its advantages and disadvantages.
Advantages
- It gives you the most bargaining power as the main insured, to get sophisticated or complicated terms and better conditions to take out your insurance.
- You have the lowest premiums due to the most favorable economy of scale.
- You have one centralized negotiating partner, rather than several independent negotiators in each region or country where you live.
- Obtain the possibility of additional coverages that could not be obtained unilaterally in a local and international market.
- Greater choice and practicality in the control of risk managers, in each parent company, over their subsidiaries where it counts.
- The most competitive premiums in the market for volumes and those proportional to the size of each operation that you could carry out at any time.
Disadvantages
- There is a possibility of slow or delayed day-to-day processes.
- Delay in issuing final policies and certificates of cover.
- Premium distribution may be more time consuming for operations.
- High dependence of each country, for insurance terms, on its parent companies
- Less elasticity in the elasticity of each operation for terms and conditions of policies within their coverages
- Risks that deductibles are always very high
- Non-coverage for claims below the deductible
- Many fragilities in the attention of domestic risks of high recurrence and low severity such as car, health or insurance of agents.
These are the advantages and disadvantages of car insurance to always keep in mind in various situations that could arise.