Motor vehicle insurance: repair costs cause premiums to rise

Motor vehicle insurance: repair costs cause premiums to rise

Drivers in Germany have to prepare for further price increases for vehicle insurance. The General Association of the Insurance Industry (GDV) announced that a loss of 2 billion euros is expected in the balance sheet for the current year. Last year, a loss of around 3 billion euros caused many policies to become more expensive. According to a study by Verivox, contributions rose for 84 percent of insured people at the beginning of the year.

GDV cites the ongoing trend towards rising repair costs as the main reason for the high losses. The average financial outlay for liability damage is forecast to be 4,000 euros for the current year; in 2014 this amount was 2,500 euros. In addition to inflation and energy prices, the rising costs of spare parts are driving up repair costs. The increasingly complex technology in assistance systems and the higher safety requirements when repairing electric cars also increase the time required.

These developments suggest that car insurance premiums could continue to rise in the future. The rising repair costs and increasing technology in vehicles influence the overall costs for insurers, which ultimately affects the premiums for the insured. It is therefore advisable that drivers inform themselves about their current policies and, if necessary, check whether there are cheaper alternatives on the market.