Everything you need to know about monthly RCA insurance policies. What are the differences with other third-party liability policies? Who are they for? What could be the benefits? What, on the other hand, are the negative aspects? A large number of examples of the installment proposals of the most famous companies in our country.
Making payments in installments is convenient and insurance companies are increasingly convinced of this, which propose a new way to pay off the premium, no longer with a single maxi annual fee, but with small monthly installments, diluted over a period of several months. . The monthly installments, in fact, are much more convenient and manageable than paying in a single solution.
The first companies to adopt this payment system was Direct Line and Unipol, which favored their customers with proposals for installment policies. , easily accessible by all income brackets.
In these cases, as in the others, the money that is paid monthly is not paid directly to the insurance company, but to the credit company with which the insurance company has entered into an agreement. : the customer will pay the monthly sum to the institution and to the at the time of stipulation, the same will pay the premium corresponding to the insurance.
The monthly installments can vary from 10 to 12, depending on the chosen contract and the insurance company.
Nowadays, more and more insurances are stipulated with an installment formula, therefore, it is essential to fully understand the general conditions of each one, evaluate the offers, costs, and corresponding interests, in order to choose the most convenient proposal for your profile.
WHAT ARE MONTHLY CAR POLICIES?
Monthly car insurance is proposals made by insurance companies, which allow the payment of the premium to be diluted over the course of a year, rather than paying it off in a single annual installment.
However, one should not get confused with the proposals for half-yearly or quarterly auto policies, which are equally valid, depending on the offers. In this case, in fact, the payment of the policies is, yes, divided into different installments, so as to allow to limit the validity of the insurance in the foreseen time, but it does not constitute a form of installment payment.
The same thing must be specified for the insurances that are stipulated for a limited period of time, for example, a month; also in this case, it is not possible to speak or compare these formulas with installment policies. The validity of a fixed-term policy is defined by the policyholder’s will to limit the policy, based on the period or kilometers (economic savings are guaranteed only as long as the 10/15 threshold is not exceeded in the month of use. thousand km).
The latter case, in fact, is often chosen when one thinks that the use of the vehicle takes place temporarily, due to impossibility of use or in the perspective of scrapping, or sale without the purchase of a new car: in these cases, there is no need to transfer the policy to a different vehicle, therefore it is convenient to limit the validity of the policy to a limited period.
The monthly car policies, on the other hand, have an annual duration, but their payment takes place in installments: therefore the real difference with the old annual policy consists in the possibility of diluting the amount to be paid so that it does not weigh heavily on the economic balance of the family.
WHY SHOULD FAMILIES CHOOSE A MONTHLY CAR INSURANCE?
The economic crisis that has almost landed our country has forced many institutions and bodies to formulate tax payment systems, or in this case third-party liability policies, much more convenient, able to meet the difficulties of families Italians, which may not be able to bear an onerous quota, to be paid out annually and solely.
People, therefore, can pay off the compulsory insurance premium, starting with monthly installments that manage to lighten the entire annual load, dividing it into different periods, so as to make the amount to be paid more convenient and accessible.
The doubt, however, remains that, based on the chosen insurance company, this installment may not be a positive factor for an Italian family with little liquidity.
According to statistical data collected, in fact, there are several Italian families who give up the insurance of their car (4,000, to be precise), not to mention the cases in which low-income families even give up on owning a motor vehicle, as the payment of the third party liability insurance policy (as well as the fuel) squeezes them in a tight and unbearable grip.
Furthermore, the so-called ghost insurance companies are increasingly in ambush, offering truly convenient payments, but which do not have any authorization to operate within our country.
The positive aspects of the monthly car policy, therefore, would only entail a lightening of the monthly economic burden of families, dividing the annual burden into several installments.
WHAT ARE THE NEGATIVE ASPECTS OF MONTHLY CAR POLICIES?
Since all that glitters is not gold, it is essential to underline the disadvantages of monthly auto policies, first of all, the problem of interest.
Given that the monthly payment is not made directly to the insurance company, but to the credit institution, chosen by the insurance through an agreement, it is inevitable that the creditors could increase the value of the insurance premium and would still pay the customers. This derives from the fact that financial interests could, however, constitute a heavy burden for policyholders.
The only way to sleep peacefully, be able to save money and take advantage of the installments, avoiding the tricks of the financial companies, is to carefully study all the proposals on the market and reach out for the one that, most of all, can fall within the personal family budget.
Therefore, the indispensable element, for a careful evaluation, is to check the interest rate applied to each individual proposal.
The installable payment of the policy is undoubtedly very advantageous for those who have insured monthly liquidity, however, it is not the best choice for those who do not have liquidity.
The biggest disadvantage, however, always remains that linked to the interest rate applied, capable of increasing, even by a lot, the overall insurance premium to be paid.
Therefore, based on every circumstance, it is advisable to carefully evaluate each proposal and establish its convenience with respect to the single payment system.
WHO IS THE RCA POLICY CONVENIENT FOR?
Having assessed the strengths and weaknesses of this new TPL policy payment system, it is possible to draw up the identikit of the figures for which the car insurance installment is VERY CONVENIENT.
Starting with those who receive a monthly salary, with which it is possible to sustain a constant but minimal payment, contrary to the much more expensive annual fixed fee.
Moreover, the payment in installments of the TPL policy is convenient for those who own many insured cars: the use of monthly installments allows not to convey the whole sum of the various policies at the end of the year, but to dilute it over a long period.
The payment in installments of the car policy IS NOT CONVENIENT AT ALL for those who do not have fixed monthly liquidity.
WHAT ARE THE INSTALLMENT PROPOSALS OF THE INSURANCE COMPANIES?
The monthly auto policies, therefore, have a double-sided nature, on the one hand, we try to grasp the positive aspects, on the other and, on the other hand, we evaluate the negative ones.
- Many insurance companies have decided to apply this formula of payment by installments, in order to meet the needs of customers, who, at times, have to bear the expense of more car policies at the end of the year: therefore, the installment payments seem to be really convenient.
MILANO ASSICURAZIONI’S PROPOSAL FOR A POSTED CAR POLICY
Milano Assicurazioni’s installment insurance proposal provides for a monthly payment, which can be made through a loan with Taeg and Tan at no cost and no ancillary costs.
The installments are 12 and are calculated based on the evaluation of the real needs of customers, proposing a suitable loan for each case.
THE PROPOSAL FOR A SELF-INSTALLED INSURANCE POLICY BY GROUP ONE ASSICURAZIONI
Group One Assicurazioni, allows you to pay the third-party liability policy in installments of 10 months, for a maximum loan equal to the amount of € 2,500.
For those who make a policy change, it is possible to save 15% of the total amount, a tactic in line with their company policy, for which new policyholders are able to pay an insurance premium that is always lower than that paid with other agencies.
The discount can also be maintained in subsequent years, regardless of rate changes, as long as the new policyholder does not report claims in the previous year.