Car insurance: When is it worth not letting the insurance company pay the costs in the event of an accident?

Car insurance: When is it worth not letting the insurance company pay the costs in the event of an accident?

According to a report by amp.focus.de,
Motor vehicle insurance usually covers damage to your own car and other people's vehicles. However, any damage leads to a downgrade in the no-claims class, which can lead to an increase in contributions. An analysis by Verivox has shown that the cost burden for the insured person following an accident can increase significantly over time. It can take up to a decade until the old level of the no-claims bonus is reached again. The rule of thumb is that it is usually worth covering damages up to around 1,500 euros yourself in order to avoid the cost of car insurance.

According to this analysis, claims can result in the insured person having to pay significantly higher premiums over a period of up to 20 years. It is therefore important to examine each case individually to determine the best course of action. It is recommended to save up to 3,000 euros in a current account so that you can pay for it yourself in the event of damage. Alternatively, discount protection can be chosen, although this usually increases the premium. Another suggestion is to buy the damage back from the insurance company in order to restore the old no-claims class.

Overall, the analysis shows that motor policyholders who cause a loss are well advised to calculate their individual cost burdens and determine the best course of action to minimize the long-term financial impact.