2023-07-24 19:08:01
On average, Spaniards spend 138 euros more on car insurance in the second quarter of 2023, compared to the same period of the previous year. Bearing in mind that, according to data from the Spanish Union of Insurance and Reinsurance Entities (Unespa)79% of Spanish households have a policy for their car, the extra cost of this increase amounts to 2,039 million euros
Despite the fact that inflation has slowed down during these months due to the drop in energy prices, the increase in the cost of insurance products, together with that of food, continues to squeeze the accounts of thousands of families at the end of the month.
One of the main concerns when buying car insurance is the price. In most cases, what we usually do is choose the cheapest company, but it is likely that what really suits us best is a policy with specific coverage.
According to him Kelisto Car Insurance Price Index, Ceuta, Melilla, Cádiz and Almería are the worst provinces to purchase car insurance for third parties and extended third parties, based on the average prices registered in each territory by the rater. In the autonomous city of Ceuta, the average cost of a basic policy amounts to 588 euros, a difference of 303 euros per year (+106%) compared to the cheapest province on average, La Rioja.
According to the price comparison company, the cheapest car insurance in July is the MMT third-party policy (138 euros). The company allows you to have a very complete policy. For example, with its roadside assistance you will have towing service from kilometer zero (that is, from the moment you leave home), in addition to a maximum of 10 nights in a hotel if you cannot continue your trip. You will also have covered medical expenses abroad up to 3,000 euros. However, this is still a basic policy and, for only 25 euros more per year, you can get the extended third-party insurance from the insurer, which is offered for 163 euros per year and is the second cheapest in this top.
The ranking of cheap car insurance for July is also made up of the Qualitas Auto third-party policy, for 170 euros per year, Pelayo’s, with a premium of 176 euros per year, and the basic Balumba policy (181 euros). These insurers also offer expanded third-party insurance, with additional coverage, such as theft, fire or broken windows, for a fee only a few euros higher. Qualitas’ extended third-party insurance, for example, costs 180 euros, only 10 euros more than its more basic counterpart.
Car insurance became 22% more expensive in the second quarter of 2023 compared to the same period of the previous year, which translates into an increase of 137 euros in the annual premium, going from an average cost of the policy of 613 to 751 euros. The all-risk modality continues to lead progress, with an unprecedented increase in all records of 29% between the second quarter of 2023 and the same period of the previous year, which leads users of this type of product to pay 480 euros more per year for the same protection for their car.
Better to third parties or all risk?
Despite the fact that the Law only requires the subscription of Civil Liability insurance, most tend to opt for more complete coverage, such as all risks or extended third-party insurance. Thus, during the first 2 or 3 years of a vehicle from registration it is advisable to take out an all-risk insurance policy.
In general, all-risk car insurance without excess is 128.4% more expensive than its alternative with excess, more than double. The price differences can be even greater depending on the insurance company and, in some cases, the amount of all-risk insurance without excess can be up to 4.8 times higher than the amount of the excess, which would make it necessary to give 5 parts to amortize its cost.
On the other hand, the minimum difference between the two types of policy is never less than 1.2 times the average cost of the excess, so that in the case of 100% of the insurers analyzed it is always more profitable to take out an all-risk policy with a franchise even if there is part of own-fault damage per year.
In the insurance modality with excess, the driver is responsible for a part of the costs of each accident with damage to his vehicle, in case he was at fault for the accident. According to insurers, the amount of the franchise ranges between 90 and 1,200 euros.
In general terms, the main motivation for taking out comprehensive insurance is having given a faulty party in the last 5 years, 33% of the comparisons. The percentage drops to 26% in comparisons of franchise policies.
Regarding third-party insurance, these policies do not include personal damage, so damage caused to a vehicle with this type of policy will only be covered if it was caused by a responsible and identified third party.
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