Experts warn of a sharp jump in car insurance prices in 2024

Experts warn of a sharp jump in car insurance prices in 2024

According to a report by www.faz.net, car owners are facing drastic increases in vehicle insurance premiums. A demand for a price increase of 20 percent is being discussed. According to Michael Pickel, board member at Hannover Re, such a price increase would be difficult to implement and could not happen in one fell swoop. German insurers are expected to have a subsidy business worth billions in liability and comprehensive insurance. For every euro of contribution they spend 1.07 to 1.09 euros to pay for damages. Auto insurers' losses this year could reach 2.5 billion euros across the industry. The main causes are inflation, which has made repairs drastically more expensive, the shortage of skilled workers and disruptions in supply chains.

Württemberg board member Per-Johan Horgby believes an adjustment of more than 20 percent is necessary. Car insurance customers are quite willing to change, which further fuels competition among providers. The high price increases could therefore lead to an increased migration of customers to cheaper providers. This could further disrupt the market and intensify competition within the industry. The development of motor vehicle insurance will be closely monitored in the coming months and years, particularly in relation to customer behavior and competitive dynamics.