Car insurance: How to save now despite rising costs!

Car insurance: How to save now despite rising costs!

Car insurance is facing current changes caused by rising repair costs and new tariffs. WDR reports that reinsurers see the increased prices in workshops as the main reason for higher insurance premiums. In particular, the increase in hourly rates, the prices for spare parts and the increased energy costs lead to additional expenses. The costs of caring for accident victims also contribute to the price increase. Increased repair costs are highlighted as the main cause, while design protection forces workshops to purchase spare parts directly from the manufacturer, which puts additional pressure on prices.

In such times, it is advisable to examine the options for reducing the cost of car insurance. WDR recommends several measures to achieve savings: A review of the driver group can lead to lower insurance costs. A workshop connection can also have a positive effect on the premium. Comprehensive insurance is often not required for older vehicles. It is also worth contacting the insurance company to ask about cheaper rates.

Telematics tariffs: savings based on driving behavior

A growing trend in car insurance is telematics tariffs, which can be particularly beneficial for young drivers. These tariffs, also known as “pay-how-you-drive,” reward low-risk driving. Financial tip explains that insurance companies need traffic data from their customers in order to evaluate their driving behavior. The data collected is pseudonymized and used to create behavioral profiles. A telematics box in the car or a smartphone app can be used to record information about speed, braking behavior and acceleration.

The premium for telematics tariffs is determined not only by vehicle characteristics, but also by individual driving behavior. Points are collected for each trip and are included in an overall score. Criteria such as braking behavior, acceleration and driving time play an important role in calculating this score. The consumer advice center points out that maximum discounts are often difficult to achieve, especially in adverse driving conditions.

Data protection and challenges

While surveys show telematics tariffs are attractive, they also raise data protection questions. The data collected about driving behavior can be stored on the smartphone, which poses a risk to privacy. In addition, continuous access to data could lead to higher data roaming costs, especially when traveling outside the European Union. Financial tip clarifies that data may only be accessed by the police in the event of serious crimes, which somewhat alleviates security concerns.

Nevertheless, there are always discussions about the fairness of the assessments and the resulting premium adjustments. The consumer advice center calls for a discussion of the ethical limits of tariff pricing, as negative reviews from other drivers can influence individual driving behavior. Insurers also have the option of terminating contracts or increasing premiums if driving behavior is assessed negatively.

In view of these developments, consumer advocates recommend regular review of insurance offers. Obtaining offers and an independent comparison, for example from Stiftung Warentest, can help to find the best conditions. The notice periods are particularly important, as many contracts end at the end of the year and notice of termination must often be received by December 1st.