When should you cancel your full omnium insurance?

When should you cancel your full omnium insurance?

IndependentComprehensive comprehensive insurance costs significantly more than your typical car insurance, but it offers the most extensive coverage. But when is it no longer profitable and when should it be terminated? Independer.be advises you.

Full omnium car insurance offers you the best cover for your car. With the mandatory civil liability (RC) car insurance, you are only insured for material damage and bodily injury that you cause to the opposing party in the event of an accident. The small omnium or mini omnium covers your own property damage for which you are not responsible: theft, fire, glass breakage, collision with animals and damage caused by natural forces. But the broadest coverage is full omnium, which also compensates your own property damage if you are at fault in an accident. You obviously pay a higher annual insurance premium for a full omnium, but it is recommended for new and more expensive cars.

Read also: RC, mini omnium or full omnium? Here’s how to make the right choice for your car

When is the best time to cancel?

After a certain time, a car loses its value year after year and your insurance company applies a depreciation rate. So there comes a time when the higher insurance premium for a full omnium no longer compensates for the amount you could receive in the event of a total loss of your car. But there are other questions to ask yourself when to cancel your full omnium.

Attention : you cannot cancel your car insurance at any time. Here are the conditions to consider.

Do you have a car loan or not?

Have you borrowed money for your (new) car? In any case, make sure you have full omnium until your loan is paid off. In general, this is a period of 3 or 4 years. Otherwise, if your car is stolen or becomes a total loss, you will have to continue paying off a loan for a car that no longer exists. Or, in the event of an accident, you will have to pay the repair costs out of your own pocket in addition to your monthly payments. In other words, you are heading straight for a financial hangover.

For how long do you benefit from the maximum compensation?

Up to 24 to 36 months after purchase, you will be reimbursed 100 percent of the list price or the purchase amount of your car, depending on your insurance contract, in the event of theft or total loss. There is then an amortization period, during which the reimbursement percentage gradually decreases each year as the value of your car decreases. Your car insurance contract specifies the depreciation rate used to calculate the depreciation of your car. The slower the decrease in this percentage and the depreciation, the more interesting it is to keep your omnium for 4 years.

Read also: what is the value of your car? Here’s how to calculate it

Want to keep your coverage against repair costs?

Regardless of the age of your car, if it is not a total loss, a full omnium will cover the total repair costs. As these costs can quickly accumulate in the event of an accident, it is an element to take into account in your decision. According to a study, the average repair of a bodywork costs around 2,000 euros. Want to keep your peace of mind and not have to worry about costs? Independer then advises you to keep an omnium for 5 years.

An alternative: the mini omnium

After a few years, many car owners replace their full omnium with the less expensive mini omnium. On average, it costs three times less than the full omnium. Please note, however, that with a mini omnium, your own property damage is no longer covered if you are at fault in an accident. But you are still insured against fire, theft or burglary, glass breakage, collisions with animals, storms and hail and other forces of nature.

How much can you save on your car insurance? Compare the offers of different insurers here on Independer.be


Read also on Independer.be

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The choice of your car influences the price of your car insurance: here are the elements to pay attention to

This article was brought to you by our partner Independer.be. Independer.be is an independent insurance broker that helps you compare and take out insurance.

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