20 percent increase in car insurance costs: What car owners need to know now

20 percent increase in car insurance costs: What car owners need to know now

Car owners are faced with significantly increased vehicle insurance costs, which have increased by around 20 percent compared to the previous year. This price jump is taking place even though the general inflation rate is declining and is at 2.2 percent in March 2024, one of the lowest levels in recent years. Fully comprehensive tariffs in particular have seen a massive price increase of an average of 21 percent, followed by an increase of 18 percent for liability policies and 19 percent for partial comprehensive tariffs. Even if you simply change insurance without purchasing a new vehicle, the prices for partial and fully comprehensive tariffs continue to increase.

These cost increases can be attributed, among other things, to the continuously growing procurement costs for car spare parts. The workshops also incur additional personnel costs. Another reason for the increased prices is the increasingly complex technologies and electronic components that are integrated into modern vehicles. This leads to longer repair times and correspondingly higher costs for insurance companies.

The forecast for the future is not very encouraging, as claims costs continue to rise and many motor insurers are currently recording losses. In order to return to profitability, insurers will probably have to further increase their premiums in the near future. As a countermeasure, it is advisable for car owners to regularly check and adjust their existing insurance. This can be done, for example, by adjusting the mileage, paying the tariff annually instead of monthly or removing family members who no longer use the service from the contract.