Motor vehicle insurance will be more expensive in 2023: Financial expert warns of price increases in Germany

Motor vehicle insurance will be more expensive in 2023: Financial expert warns of price increases in Germany

According to a report by www.focus.de,

German car insurers are under pressure to increase their car insurance premiums in order to get out of the loss zone. This will make vehicle policies noticeably more expensive for consumers in the future.

According to GDV, German car insurers are expected to make a loss of over 2.5 billion euros in 2023. This is due to increased repair costs and the increase in damage due to increasing numbers of accidents. The average property damage in motor vehicle liability insurance for cars was around 3,700 euros last year compared to 2,400 euros in 2013. Motor vehicle tariffs have risen by 8.8 percent on average on the market and are currently 6.4 percent above the previous year's level. Price increases are expected to continue increasing in the fall, especially for existing customers.

The GDV justifies these rising premiums with the increased costs for spare parts and work in vehicle workshops as well as the increase in damage. Despite rising premiums, people with car insurance can save a lot of money by switching. The difference between the middle and cheapest price segment is currently an average of 26.7 percent.

These developments are expected to have a significant impact on the market and consumers. The rising premiums are putting a financial strain on car owners and could lead to an increase in insurance switching. In addition, insurers may have difficulty retaining and expanding their customer base, which could lead to increased competition in the market.