Car insurance: why costs are rising and how you can still save

Car insurance: why costs are rising and how you can still save

According to a report by www.swr.de,

Motor vehicle insurance premiums have risen by more than ten percent within a year. According to Hermann-Josef Tenhagen from Finanztip, this is mainly due to the increased losses of insurance companies due to price increases by car companies and wage increases. Tenhagen recommends comparing your existing insurance with other providers, as savings of 30-50 percent are possible. He also gives tips for reducing costs, such as checking the actual mileage, adjusting the deductible and workshop commitment, and paying attention to the driver group, as this can result in further savings.

As an economic expert you can analyze further effects. The increased cost of car insurance could lead to consumers increasingly looking for cheaper alternatives. This could lead to increased competition among insurance companies as they have to fight for customers. In addition, demand for cheaper tariffs could increase, which could put pressure on the insurance industry as a whole to create more attractive offers. In addition, the changes in driver behavior, such as reductions in mileage, could have an impact on the auto industry and the transport sector as a whole, as this could affect insurance needs and vehicle usage.