Motor vehicle insurance for electric cars is facing a price increase: Expert Tobias Stahl warns of more expensive tariffs in the coming year.

Motor vehicle insurance for electric cars is facing a price increase: Expert Tobias Stahl warns of more expensive tariffs in the coming year.

According to a report by efahrer.chip.de, insurers and consumer advocates expect car insurance prices to rise next fall. Although insurance companies have made record profits in recent years, premiums have already been increased in 2022. Klaus-Jürgen Heitmann, head of the industry leader Huk-Coburg, predicts high losses for the current year and also for the following years. The rising costs of auto parts and repairs are likely to lead to a further increase in insurance premiums.

Inflation rates were low and car repairs were comparatively cheap, causing insurance companies to wage a price war to gain market share. The corona pandemic also led to fewer kilometers driven and correspondingly fewer claims, which led to higher income for insurers. The rising cost of auto parts, which has risen twice as fast as inflation, is expected to result in significantly higher premiums for car owners.

The supply crisis from China and the Russian attack on Ukraine have also led to more expensive car repairs, prompting insurers to significantly increase 2023 premiums as early as 2022. The industry is therefore faced with a balancing act between competitiveness and necessary restructuring measures, with some companies introducing cost-cutting measures rather than increasing prices.

The trend also shows that established insurers such as Huk-Coburg are reducing their offers, especially in the area of ​​electric car insurance. Generous discounts previously granted for electric car drivers could be completely abolished in the future. In some cases, start-up companies are even canceling their services or no longer offering vehicle insurance because access to new customers is very expensive.

Overall, the increase in car insurance premiums is expected to have a negative impact on consumers and the automotive market. Drivers are likely to face higher costs, especially when it comes to electric car insurance. Competition in the industry is likely to lead to a reduction in services and a reduction in consumer choice.