Car insurance will be more expensive in 2024: Financial expert explains reasons and possible relief

Car insurance will be more expensive in 2024: Financial expert explains reasons and possible relief

According to a report by www.hna.de, car insurance premiums rose sharply last year. The trend is likely to continue in 2024. A price war could bring relief. According to information from Check24, the motor vehicle liability policy in October had an average annual premium of 304 euros. A year earlier, the insurance was around 30 euros - around 11 percent - cheaper. According to Verivox and Check24, contributions for liability, partial insurance and fully comprehensive insurance have also become 13 percent more expensive. In the cheaper price ranges it is even 15 percent.

The increase in car insurance prices has a far-reaching impact on consumers as it leads to higher costs of car ownership. These additional expenses can put a strain on household budgets, which can lead to reduced consumption and economic activity. Additionally, the price increase could influence consumers' purchasing decisions, with them opting for smaller or less expensive vehicles to reduce insurance costs.

The increases could also lead to increased price competition between insurance providers, which could reduce prices for new customers. In the long term, this could lead to improved competition in the market and lower insurance costs for consumers.

The rising cost of auto insurance could also impact the auto industry by hurting demand for new vehicles and increasing maintenance and operating costs for existing vehicle fleets. This could have a negative impact on auto companies' sales and profits.

Given the already tense situation due to generally increased costs, current developments in the car insurance market could lead to further burdens for consumers and companies. It remains to be seen how insurance companies and regulators will adapt to this challenge and what long-term impact this will have on the industry.