Car insurance coverage: More costly premiums and dangers when altering suppliers | EUROtoday

The enhance in motorcar insurance coverage costs has slowed considerably this yr. However, greater premiums for complete and legal responsibility insurance coverage are a actuality for almost all of drivers. In a consultant survey by the comparability and dealer portal Verivox, 60.3 p.c of drivers said that they must pay the next insurance coverage premium this yr. A yr in the past, this fee was 65.6 p.c among the many roughly 1,000 automobile homeowners between the ages of 18 and 69 surveyed, which signifies an easing of tensions.

The fact is that 22.3 p.c paid premiums on the identical degree because the earlier yr – though none of these surveyed mentioned they’d reported any harm up to now twelve months. In these instances, the premium ought to even have fallen as a result of the next no-claims bonus. Verivox concludes that automobile insurance coverage turned dearer for 82.6 p.c of drivers this yr. 10.7 p.c of these surveyed reported a worth discount, the remainder didn’t present any data.

The absolutely complete insurance coverage division particularly places a pressure on automobile insurers. This can also be the place they most frequently applied worth will increase. 65.2 p.c of these with absolutely complete insurance coverage acquired a worth enhance with their final premium invoice, whereas the premium remained unchanged for 19.8 p.c, in accordance with the outcomes of the survey carried out by the comparability portal. Meanwhile, amongst automobile homeowners with legal responsibility insurance coverage, 52.1 p.c say they’ve acquired a worth enhance. The contribution didn’t change for 29.9 p.c.

In latest years, German automobile insurers have incurred excessive losses. According to the General Association of the German Insurance Industry (GDV), the mixed ratio was 111.3 p.c in 2023 and fell to 104 p.c in 2024. This signifies that for one euro of contribution the insurers needed to spend 1.11 or 1.04 euros to settle damages. The trigger was a rise in workshop prices, which far exceeded the overall fee of inflation. GDV expects that with a mixed ratio of 96 p.c, German automobile insurers will make earnings – albeit modest ones.

GDV President Norbert Rollinger, who can also be head of the cooperative R+V insurance coverage group, doesn’t but see the causes of the worth explosion within the years after the corona pandemic. Spare components have grow to be 80 p.c dearer in ten years, with inflation of 30 p.c, he informed journalists in Frankfurt final week. And hourly charges in workshops have risen twice as quick as inflation. “This is also related to the optimization of car manufacturers’ income and the issue of skilled workers,” mentioned the GDV President.

The newest survey by VERS Leipzig, which, amongst different issues, produces market analyzes of the German insurance coverage business, additionally reveals how deeply within the loss zone some automobile insurers have been. The survey covers the years 2023 and 2024. Figures for the previous yr usually are not but obtainable as a result of most insurers haven’t but opened their books for 2025. Nuremberg Insurance was probably the most loss-making within the motorcar division in 2024, with a mixed ratio of 120.3 p.c.

Among the 50 German automobile insurers examined, Garanta was additionally within the crimson with 114.5 p.c and Europe with 104.8 p.c. The Huk 24 (claims-cost ratio of 98.8 p.c), Continentale (97.9 p.c) and Debeka (96.2 p.c) solely narrowly missed the loss zone wherein the Huk 24 had already been in 2023.

Comparison and dealer portals reminiscent of Verivox advise automobile homeowners to alter insurers if premiums are greater. This is usually doable after one yr of insurance coverage membership. As insurance coverage contracts are more and more concluded through the yr, the basic changeover interval in December is turning into more and more much less essential. Only a minority of these surveyed by Verivox make use of the switching choice. 78.2 p.c say they paid the upper contribution.

Last yr this proportion was 77.1 p.c, and in 2024 it will be 70.9 p.c. Only just a few, particularly 4.5 p.c, examine or alter their tariff-related data. Verivox suspects that the explanation for the reluctance is that just about 1 / 4 – 23.4 p.c – say they have no idea when the time period of their car insurance coverage will finish.

However, generally it’s not smart to alter your automobile insurer. Consumer advocates additionally warn that if further agreements have been made when the coverage was taken out. This applies, for instance, to low cost safety. It takes impact if harm happens through the insurance coverage yr. The driver then stays in his no-claims class. So it will not be upgraded, but it surely will not be downgraded both. However, this settlement solely applies to the prevailing automobile insurance coverage.

If the motive force adjustments supplier, they are going to be knowledgeable of the present no-claims class. The identical additionally applies to any particular agreements with the insurer, for instance for the second automobile, which aren’t categorized within the entry-level no-claims class firstly of the contract, however relatively cheaper. Here the brand new insurer will calculate the premium based mostly on the years which have really been accident-free.