Motor vehicle insurance: Experts predict an increase of ten percent by 2024

Motor vehicle insurance: Experts predict an increase of ten percent by 2024

According to a report by www.nordkurier.de,
According to the President of the German insurers' association GDV, Norbert Rollinger, drivers in Germany must prepare for the fact that premiums for motor vehicle insurance are expected to rise by an average of ten percent next year. This forecast is based on the increased costs for repairs and spare parts, which caused insurers to lose billions in 2023. The motor vehicle insurers then raised their prices at the turn of the year in order to compensate for the losses.

The impact of these premium increases is obvious to consumers – higher costs for car insurance. For the industry, this means an opportunity to make up for losses and return to the black in the long term. However, this is also likely to have an impact on consumer spending habits, as higher insurance costs could reduce disposable income and potentially lead to lower demand for new vehicles.

Price increases are also to be expected in the area of ​​building insurance, which will also be caused by the increased need for repairs and spare parts as a result of natural disasters such as the Christmas floods in Germany. The expected increase in prices of around ten percent will further increase the financial burden on consumers.

The Christmas flood in Germany led to insured losses of around 200 million euros, the majority of which was due to natural damage to buildings. This illustrates the importance of natural hazard insurance, as normal building insurance does not cover flood damage.

Overall, there are signs of a tense situation on the insurance market, which will impact both consumers and the insurance industry. The rising costs of insurance could influence consumer behavior and put a strain on the financial situation of many households. It remains to be seen how the industry and consumers will react to these developments.