Car insurance

Posted by bara 14/01/2014 at 14h39

Due to increasing competitive pressures,the amount of compulsory insurance for several years been reduced. Now is the opposite situation. Since this September insurers are obliged to pay at least 3% of the premium income of the Fund to the loss prevention. These funds will be distributed among firefighters, rescue workers and persons involved in projects increasing road safety and will be used to buy or upgrade equipment.

car in hand

Another reason is the rise of compulsory insurance , the new Civil Code, which entered into force on 1 January 2014, and increased demands on motorists claims. The right to compensation  will have indirect participants equally like direct participants. Insurance companies will have to spend big  sums on these claims , which will be assessed individually . In year 2013 family of someone who died could get only 240, 000 crowns but this year are compensation unlimited.  Czech Insurance Association estimates that the cost of insurance will increase by three billion per annum.  The rise of car insurance is form „hidden tax“.

Way to avoid the more expensive car insurance  is when you use fixation price of car insurance to three years . The advantage is that car insurance will be for the three years more expensive then in these days. The disadvantage is that insurance companies offer fixation of price only for premium products what are much more expensive then clasic variant of car insurance. When you selecting  car insurance you need to use common sense and only select the alternative product that would meet our needs . If the client negotiates insurance the cheaper option , it is possible that during the three years to pay premiums less than it would cost premium option with price fixing. General rule regarding car insurance, mortgage,, vendor selection energy or the mobile operator is that we must choose product variants that meet our specific needs, and we must not be fooled by overpriced products of certain financial institutions whose possibilities we will not be able to use it.

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