Motor insurance, whether for BFG / military personnel or any other customer, is a constantly changing insurance product (benefit and premium wise) and should be reviewed on a yearly basis! Whilst other agents like to advertise their car insurance products with the words experience, cheap and at all times comprehensive we at ERICON broker let actions speak louder than words.
Experience... is very important but how much experience should your broker really need for a simpler insurance product like car insurance? 10, 20 or even 50 years... Well to answer this question one just needs to look at the constantly changing Terms & Conditions for car insurance, with providers always out on the prowl for new customers. Insurers are frequently improving their tariffs by introducing even higher insured sums or extra (often pointless) benefits. Reading just these few examples you will have already worked out where we are heading... ... an up-to-date broker will unquestionably be able to give more precise and professional advice on benefits and exclusions than, let us call a spade a spade, the broker with bags of experience but its staff lacking compulsory qualifications or real knowledge on the product they are selling.
Cheap... is also good and we all like the best deal. However cheap has its pitfalls, especially with insurance!
There are only 3 real reasons why an insurance company will offer motor insurance cheaper than the competition:
Comprehensive... this wording of "overall coverage" has various interpretations amongst the numerous companies but should include the following benefits to meet the requirements of real comprehensive car insurance:
the premium will not increase on renewal should the regional- or type-classes increase or because of general claim- and cost-development inflation.
Offers uncomplicated help in the event of sudden emergencies caused by breakdowns or accidents.
The insurer dictates the workshop where the car is to be repaired and in return discounts the casco-premium by a fixed percentage. Depending on insurer, discounts can be as much as 30% and the following conditions/ benefits are common in today's market.
Should the person decide to visit a garage of own choice the insurer will reduce reimbursement by a fixed percentage and before deducting a possibly agreed deductible.
When choosing a more-valuable product, glass repairs are usually exempted!
Hence, the customer can still visit well-known workshops such as Carglass, Euromaster, junited-Autoglas or Wintec without preauthorisation from the insurer.
Not even with fully comprehensive cover do German motor insurances insurer all imaginable cases.
Commonly excluded from insurance coverage are:
Apart from just assessing the human-risk using the following personal parameters
The actual main risk German insurers are interested in is the actual vehicle. Therefore, the following factors play a more important role.
There are two ways to terminate a German motor insurance policy prior to renewal that cover a vehicle registered via a non-German Registration Office.
One month's notice
Prior to renewal send in one months' notice to not renew the contract in writing / text form
The following means are not accepted!
ACP gives you the possibility to claim on your own insurance in the event of a incident abroad and caused by a Third Party. You will then not have to deal with a foreign insurer or any language barriers and will receive reimbursement based on German insurance law, which is considerably more sophisticated compared to other countries. Hence ACP is primarily meant as a financial safety-catch should the other party's insurance decline payment or start delaying reimbursement, etc. ...
As a matter of fact no reason is needed to use this benefit from the very beginning, however there is a catch! Clients must be aware that using Abroad Claim Protection will initially be classed as a claim on your own (liability) insurance until the insurer has received reimbursement of their costs from the opposing insurance. For this reason it is crucial that the police are always called out and if this is not possible then at least a European Accident Form has been completed by both parties. This is to prevent any contradictions regarding assignment of guilt as you then at least have the opponent's signature on your stated details.
If you frequently travel thru different countries it is definitely worth having and can save a lot of hassle should one ever be involved in an accident. ERICON - as your constant companion - will of course always try to help and will communicate with the other party's insurer on your behalf, however some companies do make things more complicated than necessary with only one objective - to avoid paying or to delay reimbursement as long as possible.
The insurers expect the following incidents related to motor insuance to be reported to the policy without delay.
* Relates to policies with the extra "parking benefit", covered by the Partial Risk module. Hence not the damage your moving vehicle has caused to another parked vehicle but vice versa - some other vehicle has damaged your car.
** These can also be reported to the local forstery office.
Not all but most service-motor insurers reimburse casco claims based on just a repair-cost estimate. Although presenting an assessor report is the more profitable approach, due to the additional expense commissioning an expert entails, especially for claims related to older vehicles it makes more sense to present the insurer a repair-cost estimate, knowingly that some costs won't be reimbursed until the repair-invoice is presented.
Expenses that are initially not reimbursed:
Expenses that are often not refunded:
When taking out a loan or lease on a vehicle, the 'object of desire' itself is often enough sufficient security for the creditor (bank).
Consequently, it is then the loanee's/ lessee's responsibility to make sure the value is secured, hence Fully Comprehensive cover becomes inevitable to cover the financial consequences in the event of a bigger incident or even total-loss (write-off or theft). This hedging measure also entails a requirement set by the creditor, in which the borrower cedes his right of financial reimbursement to the bank.
This is called 'Transfer of Security'.
In many countries the police like to see the International Insurance Certificate ('Green Card') after an accident for assurance that the vehicle has liability insurance and simply because it contains all necessary information.
In all countries of the European Economic Area (i.e. the EU, Croatia, Iceland, Liechtenstein and Norway), as well as in Andorra, Monaco, San Marino, Serbia and Switzerland, the International Insurance Certificate is however no longer mandatory upon entry. In these countries the so-called Licence-Plate-Agreement applies, thus authorities have assurance that liability coverage is in place by checking the registration plate.
In the following countries a Green Card is mandatory:
For all those unaware, the International Insurance Certificate, commonly known as „Green Card “, is evidence that the vehicle has liability coverage for when travelling abroad.
Since 1965 these certificates have always been green, yet as of 1st July 2020 they are also acceptable on plain white paper, allowing motorist to receive these digitally and print them themselves.
There are several rules & regulations differing from insurer to insurer but in general the certificate must be:
In Germany the No Claims Discount (NCD), called "Schadenfreiheitsrabatt", has the biggest impact on the premium you pay. The more years claim-free insurance you can show, the cheaper the insurance will cost.
To prove the amount of years the entitlement will either be electronically transferred from one German insurer to the other, or the client can send in an original certificate from a foreign insurer, which must state an expiry date and the amount of years claim-free insurance accumulated.
What clients from overseas are often not aware of is that in Germany NCD is linked to a policy number, thus not to a specific person. Consequently, if a person can prove a personal claim-free record of 30+ years, this entitlement will still only be able to be used with just one policy.
The actual NCD German insurers' grant depends on the amount of years a person has been a policy holder and the entitlement is split into Liability- & Full Casco (Own Damage) related discount. Technically this is described as: SF KH & SF VK.
On taking out car insurance with more than 3 years driving experience (EU driving licence required as proof), you will be granted SF1/2, which normally equals 70%. In money terms this means that if the annual premium without any discount (100%) was 1,000€, the following year it will reduce to 700€. And depending on whether the contract commences before or after 30th June, if after, the policy will automatically be granted SF1 - one full year NCD - as of the subsequent 1st January. The savings difference between SF1/2 and SF1 is approx. 10%.
The maximum amount of years you can achieve is endless, however the lowest percentage nowadays is generally at 25% for both Liability and Comprehensive, provided that SF35 has been reached.
Failing to make a subsequent payment with a German motor insurer does not mean coverage lapses as from the payments due-date.
Once in arrears, the insurer will send a first reminder, normally within 2-3 weeks, stating the following.
When taking out an insurance policy we give you the so-called double-white card, which you will have to present at your NATO POV/ BFG registration office (BFGLO).
In addition you will also need the following documents for NATO:
For the BFGLO you need:
To ensure your motor insurer will be accepted by Vehicle Licensing it is advisable to choose one approved by Global Support Organisation (Germany).
By addressing your application to OC BFG VLO (MAIN), BFPO 39 it is possible to check whether your non-listed insurer might still be accepted whilst posted to Germany.