Customers give cash to insurance companies because they rely on them to take care of the damage in many car accidents. With this method you can earn over 1000 euros more.
First and foremost, the insurance company thinks of itself, then of the customer. Although everything seems legal and correct, the account balance of the insured is still over 1000 euros lower.
What causes this and who does it affect? The procedure described by Finаnztest does not apply to all accidents. Two conditions must be met: In the event of an accident, several parties must be “to blame”; the damage is then divided among the parties involved using a quota. A fully comprehensive insurance is also required. You cannot go the way described by Finаnztest if you only have liability insurance and possibly partial comprehensive insurance.
Not in every accident
For the sake of simplicity, the calculations assume that two people were involved in the accident, each of whom was 50 percent involved. When dealing with unsuspecting customers, the insurance industry proceeds as follows: The opposing liability first pays half of its own damage. The remaining damage is covered by your own fully comprehensive insurance. The layman thinks: “Wow!” The sum of 50 and 50 corresponds to 100%. And he is wrong; with this model he bears a substantial part of the costs.
What do you mean by that? Because the terms “liability” and “fully comprehensive” are interchangeable. Fully comprehensive insurance usually does not cover the cost of an appraiser or rental car, as well as some other costs.
It’s not necessary. At least if the customer makes use of his “quota privilege”, which allows him to choose the order in which the insurance takes effect. The term “quota privilege” is not known, but it can imply a considerable sum of money.
Magic word quotа privileges
The smart customer proceeds as follows with the sample calculations for the financial test: They first contact their fully comprehensive insurance and have 100 percent of the vehicle damage billed. Only with me does he turn to the counter liability after the fully comprehensive insurance does not take over. For some items, he will be reimbursed not just half but the entire amount.
The most notable feature is that the upgrade to fully comprehensive insurance includes damage coverage. Unfortunately, the consequences are no longer paid out in one fell swoop, but must be claimed from the insurer year after year. Background: If you don’t have insurance, you won’t get harmed.
Since this method of regulation is more difficult overall, a specialist lawyer should be consulted.
However, since the counter-liability must not be placed in a worse position, this model can only work to a limited extent – the “extra money” for the customer is ultimately at the expense of his fully comprehensive insurance. In the case of a financial test with a total cost of 5600 euros, the insured person would normally only be reimbursed 4300 euros. He would get 5440 euros with the smarter method. That is a difference of 1140 euros.
For a small fee, you can read the entire test along with helpful explanations.
Editor’s Note: This article has been updated. RA Franke, one of our readers, has drawn our attention to a recent change in the law.
Source: financial test