Motor vehicle insurance: Experts predict significant premium increases

Motor vehicle insurance: Experts predict significant premium increases

According to a report by www.abendblatt.de, car owners in Germany must expect significantly rising vehicle insurance premiums in the next few years. The increased spare part and repair costs have led to massive losses for motor vehicle insurers, meaning that further price adjustments are “inevitable” in Hannover Re’s opinion. Premiums are expected to increase by double-digit percentages, with average claims remaining high despite premium increases.

The rising prices of insurance premiums are expected to impact the market, consumers and the industry. For consumers, this means they have to spend more money on their car insurance. This could lead to car owners switching insurance providers to find cheaper rates. This in turn could increase competition among insurance companies.

What this means for the insurance industry is that the profitability of the auto business is expected to improve as higher premiums help offset losses due to increased claims costs. Rising prices could also encourage the introduction of innovative insurance products and tariffs to meet consumer needs and remain competitive.

Overall, rising car insurance premiums are expected to change the dynamics of the insurance market and require both companies and consumers to adapt their strategies and decisions to meet the new market conditions.