Motor vehicle insurance will be more expensive in 2024: Experts expect rising prices and a possible price war.

Motor vehicle insurance will be more expensive in 2024: Experts expect rising prices and a possible price war.

According to a report by www.merkur.de,

Last year, car insurance premiums rose sharply and this trend will continue in 2024. According to information from Check24 and Verivox, tariffs have increased by a double-digit percentage since last year, and insured people will also have to prepare for an increase in contributions in many cases in the coming year. According to Check24, the motor vehicle liability policy had an average annual premium of 304 euros in October, which corresponds to an increase of around 11 percent compared to the previous year. The premiums for liability, partial insurance and fully comprehensive insurance have even risen by 13 percent, and in the cheaper price ranges it is even 15 percent.

These price increases are due to various reasons, including the increased costs of repairs, spare parts and wages. The car insurance sector is expected to post heavy losses this year, and the German Insurance Industry Association expects a deficit of 2.5 billion euros for member companies with car insurance. The costs for spare parts have risen particularly sharply and are making a significant contribution to the rising premiums. In addition, new type class classifications influence further premium adjustments for car insurance.

The economic reality therefore urgently requires price increases to meet the increased costs. However, a price war between providers could lead to cheaper prices for new customers and influence the market. Drivers therefore have to prepare for higher costs, while insurance companies strive to maintain their competitive position and compensate for rising costs. This trend has far-reaching implications for the market, consumers and the insurance industry as a whole.