Insurance Dos and Don’ts – Save Without Risk
Although some insurance policies are mandatory by law, such as car insurance, most other types of policies are personal choice. We’ve included a series of tips and tricks but, of course, the final choice is up to you.
Car insurance
If you’ve got a young driver in the family then you will be well aware that it’s cheaper to put him/her on your own car insurance in Spain with yourself as the main driver. However, insurance companies are catching on to this and, in the case of an important claim, may investigate. If it can be proven that you were not the main driver, this may invalidate your claim. Most major companies offer insurance policies specifically for young drivers and you can also try Balumba and Verti.
Don’t always take for granted that third party insurance is cheaper than fully comprehensive – compare prices first. Alternatively check out third party cover with extras (eg windscreen breakage).
Use price comparison sites for car insurance such as Acierto. Remember to be careful with getting insurance online, as if you put in the wrong details you may invalidate your cover. Additionally remember that not all companies are not included in price comparison sites.
Extended warranties on goods
The EU directive states that all electrical appliances must have a 2-year warranty. You must keep your receipt or invoice and during the first six months any repair should be dealt with by the seller without cost. The tricky part comes after these 6 months where the onus is on the buyer to prove that the fault was due to the manufacture and not usage of the product.
Many sellers tend to avoid mentioning the two-year warranty and try to offer an extended warranty when you buy their goods. This leads to some ridiculous offers such as 40€ cover for a 60€ printer.
Most homeowners will find that their current home insurance policy covers many of the eventualities that these policies offer anyway - you’ll have to check. However, if you have an item that is stolen (camera, laptop) and it can be shown that this was due to negligence on your part then you won’t be covered.
For minor items we suggest you “save for a rainy day” rather than take out an extended warranty. Additionally we have a conspiracy theory that appliances are not made to last longer than five years anyway – to make sure there’s constant demand!
Mobile phones
Until recently we wouldn’t have advocated taking out mobile phone insurance. However, as Movistar and Vodafone have both decided to stop giving free smartphones, there may be a case for it.
Before you get a policy, check if it’s covered on your home contents insurance and, if so, up to what value. If you have a top-of-the-range phone but you’re only covered up to 100€ you might want to consider a policy either with your mobile phone provider or another provider such as The Phone House.
House insurance and contents
First of all don’t underestimate your home contents insurance to save a few euros on your policy. If you have to make a claim on your policy (eg after a break-in) and the insurance company decides that you’d only insured for half of the contents actual worth, then you’d only be entitled to half of your claim.
If you have a property that’s currently on the market that is empty, make sure that you have reduced your contents insurance to what’s actually needed (eg to cover kitchen and bathroom fittings - many companies will have a minimum threshold for contents insurance cover.). Or if you have rented out your property make sure that you let the occupiers know that they’ll be responsible for insuring their own contents.
Pet insurance
The cost of pet insurance can be worthwhile given the potential cost of vet’s fees, but remember to check out the small print as, for example, overlooking annual injections could invalidate your policy. Your pet will normally have to have a microchip fitted and you won’t be covered if your pet takes part in sporting or hunting activities.
In Spain most of the major insurance companies offer policies, so check out Mapfre, Santalucía or Ocaso. Additionally there’s a website called SegurVet that you can check. Anybody who’s brought their pet from abroad should make sure to mention it to the insurance company.
Travel Insurance
If you travel more than once a year, check out an annual travel insurance policy (also available in periods of 3 months) that tend to work out more economical than buying each time you travel. In most cases, you should take out this type of policy in your country of residence. Take a look at rates in Spain with Intermundial, Allianz-assistance and Mapfre. We also took a look at a comparison website: www.seguro-viaje.net, but their website seemed so homemade that we decided to give it a miss.
And don’t forget…
For each policy, around 2 months before it’s up for renewal remember to:
- Check your existing cover – does it need amending (eg change in home contents value)? Are there any new circumstances that you need to include or remove?
- Shop around, use price comparison sites to find cheaper deals.
- Call your current insurer and let them know the deals you’ve found. Give them an ultimatum, in most cases they’ll equal the price and, if not, switch to a new company.
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