Contract
Car insurance: 3 insider tips in the small print
Which car insurance is best for me? In most cases, the differences can only be seen in the small print. Our tips will show you what to watch out for.
06.09.2022
iStock/AndreyPopov
1. What are the General Conditions of Insurance (GCI)?
Contracts for car insurance are not always easy to understand. Product differences can usually be found in the small print – in the General Conditions of Insurance (GCI). It contains the basic contractual conditions that apply when you take out an insurance policy.
But what should I watch out for when comparing different GCIs? The following insider tips show you how to compare the most important things in the small print.
2. Compare compensation in the event of a write-off
What compensation do you receive if your car is written off? Answering this question is essential to ensure that you only have to pay as little as possible out of your own pocket in an emergency and can easily buy a new car.
Each insurance companyhas its own compensation table, which is generally based on the current value of the vehicle. It defines the percentage of the replacement value of your car that will be paid to you in which operating year in the event of a write-off. You can find this table in the general conditions of insurance – it should be easy to spot.
An example of two compensation tables:
| Year of operation of the vehicle | Insurance A * | Insurance B * |
|---|---|---|
| 1. Year of operation |
100% |
95% |
| 2. Year of operation |
100% |
86% |
| 3. Year of operation |
85% |
78% |
| 4. Year of operation |
75% |
70% |
| 5. Year of operation |
65% |
62% |
| 6. Year of operation |
55% |
55% |
| 7. Year of operation |
48% |
48% |
* Average compensation in % of the replacement value of your car in the event of a write-off
Explanation: if a vehicle with a replacement value of 50,000 francs is written off in the second year of operation, insurance A pays the full 50,000 francs and insurance B only pays around 43,000 francs. That’s a striking difference of 7,000 francs. A quick GCI comparison pays off.
3. Compare premium tier systems
In principle, the following applies: in a claim-free year, the premium goes to the next lower level; for every claim made, the premium increases by four levels. However, the levels vary greatly from one provider to the next. You can find the exact conditions in the General Conditions of Insurance.
You can take out bonus protection to prevent your premiums from going up after a claim. However, this only covers you for one claim per year. It’s therefore worth briefly checking the small print to see what percentage your premium would increase by should you need to make another claim.
How it works: search in the GCI for the keywords “premium level system” and “premium level table”. This is the only table in the GCI apart from the compensation table.
Good to know: some insurance companies do not have a premium level system. In this case, your premium will always stay the same.
4. Compare parked car damage coverage
You find your parked car damaged, but don’t know who could have caused it. Damage while parked – a “classic incident” that unfortunately occurs often.
Cover for parked car damage is usually limited. This means that the number of parked car damage claims covered per year and the maximum compensation per parked car damage claim are limited. It is precisely on these two points – the number and the sum insured – that the differences between providers can vary massively. Search for “parked car damage”in the GCI. The differences are usually clearly visible.
This article was first published on 08.09.2018
