Historic increase in motor vehicle insurance rates: How to use the special right of termination

Historic increase in motor vehicle insurance rates: How to use the special right of termination

According to a report by www.n-tv.de, many policyholders have the opportunity to get out of an unfavorable contract even after the official deadline for changing car insurance, especially if the insurance company has increased the rate.

According to the comparison portal Verivox, many providers have increased their contributions this year, some even drastically, with an overall average of 14 percent higher than in the previous year. This historic increase is attributed to increased loss rates and higher repair costs, which are driving auto insurers into the red this year. Many providers have therefore drastically increased their contributions for the coming year in order to compensate for these increased costs.

It's also important to note that not all premium increases are obvious. Even if the amount to be paid in the future decreases with new tariffs, there may be a de facto increase. This is known as a hidden premium increase. In addition, a four-week special notice period may apply following damage if the insurance rate changes after the claim has been settled.

These developments are expected to impact the automobile insurance market. After the official switch date has passed, policyholders now have the option of making use of a special right of termination in order to switch to a cheaper provider. Competition between insurance companies is likely to continue to intensify as they seek to offer attractive rates to attract customers.

For consumers, this means they will have more choices and potentially cheaper tariffs. The industry as a whole must prepare for increased competition and possible adjustment of its tariffs in order to remain competitive.