Motor vehicle insurance is on the rise: this is how you can save cleverly now!

Motor vehicle insurance is on the rise: this is how you can save cleverly now!

With rising car insurance prices, many drivers are forced to rethink their existing contracts and look for savings options. WDR reports that the costs for workshops are a central problem. High hourly rates, rising prices for spare parts and energy costs have put pressure on premiums. The additional expenses for caring for accident victims are also a burden and have a significant impact on the amount of vehicle insurance premiums.

The main drivers of these developments are the increased repair costs, as design protection forces workshops to purchase spare parts directly from the manufacturer. This often leads to higher prices. Drivers are therefore encouraged to check their contracts regularly and, if necessary, explore cheaper tariffs from other providers. What is particularly relevant is that many insurers increase prices for existing customers, while new customers often benefit from more attractive offers. Finanztip highlights that checking the driver group and possible workshop loyalty could help to reduce costs.

Telematics tariffs: An interesting option

An increasingly popular way to save on car insurance is through telematics plans, also known as “pay-how-you-drive.” The consumer advice center provides information that novice drivers can particularly benefit from these tariffs, as they can achieve premium savings by disclosing their driving data. Telematics tariffs are based on a behavior score, which is determined from collected driving data such as speed, braking behavior and acceleration.

The data is recorded and analyzed either via a telematics box in the vehicle or via a smartphone app. However, there are also data protection concerns to consider here. Financial tip describes that the collected data is forwarded pseudonymously to insurers, who then use a separate company for data analysis. Although this is intended to ensure data protection, it also carries the risk that the information does not remain completely anonymous.

Advantages and disadvantages of telematics tariffs

Although telematics tariffs offer numerous benefits such as risk mitigation components, their use also raises questions. For example, there are concerns about fairness because individual driving behavior can be assessed differently and the premium does not only depend on vehicle characteristics. Aspects such as achieving maximum discounts could prove difficult due to adverse driving conditions. The consumer advice center also emphasizes that the technology also has some disadvantages, such as potentially high costs for the necessary hardware or app.

In summary, switching to a cheaper car insurance plan, especially a telematics plan, can be of great benefit to many drivers. However, it is important to consider all aspects and learn about the pros and cons to ensure you make the best decision.