Increasingly costly auto insurance premiums are becoming a concern.
It's around autumn when people usually assess their car insurance, but it seems like there aren't many chances for cost reductions this year. According to stats from the comparison site Verivox, car owners should prepare themselves for a significant jump in insurance expenses.
Switching insurance providers appears to be more expensive right now, as per Verivox's calculations. The offers for switching insurance policies have increased by 21% compared to a year ago. It's important to note that the actual increase in existing policies might not be as high as 21%, but it indicates a trend in rising prices.
Wolfgang Schütz, the CEO of Verivox Insurance Comparison, explained, "Some insurers have already revised their rates and are planning further adjustments. Last year's price hikes didn't sufficiently cover the car insurers' deficits. Additionally, the costs for insurance claims continue to soar, due to escalating spare part costs and mounting workshop hourly rates."
HUK Coburg, the leading car insurance provider in Germany, recently warned about considerable price hikes in the market as well, although at a lower rate than the 21% estimated by Verivox for switchers.
Liability insurance experiences the most significant rise
Verivox's data showed the highest increases in car liability insurance, with a 25% surge for medium-priced plans. In the partial coverage sector, there's a 21% increase, and for full coverage, it's 20%.
Attractive switcher offers remain an essential sales strategy for insurers, according to Schütz. "Car owners don't need to simply accept price increases. By switching insurance providers, they can still take advantage of competitive prices for new customers."
The current price information is based on user calculations from Verivox in the period from 1st to 25th September both this year and last year, which have been anonymized and combined into an index.
In light of the rising costs, car owners might need to consider increasing their motor vehicle insurance budgets, as liability insurance experiences the most significant rise with a 25% surge for medium-priced plans. Despite the price hikes, switching insurance providers can still provide competitive prices for new customers, as attractive switcher offers remain a crucial sales strategy.
