Motor vehicle insurers report red numbers - what car owners need to know now

Motor vehicle insurers report red numbers - what car owners need to know now

According to a report by www.volksfreund.de, owning your own car will become more expensive in the future as Allianz Insurance and other car insurers posted losses last year. This is mainly due to the increased costs of repairs and spare parts, while customer contributions have remained at the same level or even decreased. Allianz announced that the contributions would have to be adjusted due to the ongoing price increases.

The rising costs of repairs and replacement parts will inevitably lead to higher insurance premiums for car owners. As auto insurers experience losses, they will look to increase revenue to offset increased costs. This will likely result in an increase in insurance premiums for car owners, which in turn increases the overall cost of owning a car. For consumers, this means they can expect to pay more for their car insurance.

In addition, rising insurance premiums could also have an impact on the automobile market. Higher insurance costs could lead some consumers to decide against buying a car or opt for less expensive models. This, in turn, could impact automakers' sales and profits.

Overall, the increased cost of auto insurance is expected to have a negative impact on car owners, consumers and the automotive industry. It remains to be seen how the adjustment of insurance premiums will affect the market.