There are more than 30 insurers in the Spanish market. Below you will find an explanation of the 3 types in which they are divided and if you are interested you can create your personalized price comparison between the main companies.
Traditional car insurance companies
They are the insurers with greater antiquity in the market, those of “all the life”.
They sell their products through extensive networks of agents and insurance brokerages.
They base their strategy on offering personal treatment, based on the trust that can be generated by talking in person with an insurance specialist.
As advantages, it should be noted that these companies generally offer a quality service, thanks to their extensive experience in claims management as well as their extensive networks of experts and concerted workshops.
On the other hand, the personal treatment they offer through their representative offices is an additional bonus for many people who prefer to speak in person with a consultant, although the high costs involved in maintaining a commercial network, suppose a surcharge on insurance.
Direct sales insurers by phone and Internet
Since Linea Directa came to the insurance market in Spain in 1995, direct insurers have progressively grown to reach almost 10% of the market today.
Their main differentiating factor is that they establish direct contact with the client, thus dispensing with the high costs involved in representation offices.
Although the main means of contact is still the telephone, these companies are the ones that are best taking advantage of the boom in the sale of insurance online.
By contracting with one of these companies, many consumers can save up to more than 40%, in addition to getting additional discounts of up to 20% if they hire insurance online, due to the operational cost savings that this means, which allows to find cheap insurance at prices that would otherwise be very difficult to obtain.
The lack of a physical interlocutor is the great dismay, since it generates insecurity in many users, especially in cases of disaster.
On the other hand, we must pay special attention to the level of coverage of their policies, since sometimes they apply heavy cuts to reduce their price to the maximum.
Mutual insurance for cars
A mutual is a non-profit insurance entity, which is the property of the mutuals, that is to say, of the clients that contract the insurances of the mutual. While the basic principle of a traditional insurer is to generate the greatest benefit for its shareholders, the Mutuals aim to maximize the benefits obtained by their mutuals through the services it provides.
Today, there are hardly any differences between the commercial policy of a mutual and that of a traditional insurer, although it is true that some mutuals have prices that are especially competitive for relatives of mutuals, not available to outsiders. One of the limitations of the mutuals is that the majority only allows hiring through their own offices, thus limiting their accessibility.
In addition, they tend to have their commercial networks very concentrated in a specific geographical area in which they are very competitive, while in other provinces their prices are too high.