Motor vehicle insurance is becoming more expensive: financial expert explains current price developments and savings potential of up to 31 percent.

Motor vehicle insurance is becoming more expensive: financial expert explains current price developments and savings potential of up to 31 percent.

According to a report by www.focus.de, car insurance will be significantly more expensive this changing season. According to the vehicle insurance index from the comparison portal Verivox, premiums have increased by up to 16 percent. Cheap liability tariffs cost twelve percent more than in the previous year, partially comprehensive insurance tariffs are eleven percent more. However, those who change insurance can benefit from new customer discounts and save up to 31 percent.

The price increases are due to various factors, including inflation-related increases in repair costs and increased loss rates. This puts the division deep in the red this year. The premium increases affect both fully comprehensive and partially comprehensive insurance, with the prices for fully comprehensive insurance rising by 13 percent and for motor vehicle liability by ten percent. Partial comprehensive tariffs recorded an increase of eight percent.

The price adjustments come at a bad time for consumers, who are already having to reduce spending due to increased living costs. According to Wolfgang Schütz, Managing Director of Verivox Versicherungsvergleich GmbH, the premium adjustments are necessary for insurers in order to expand their market shares. However, drivers who take advantage of the changeover season can slow down price increases.

In order to expand their customer base, insurers are also offering significantly lower prices for new customers this year. The difference between the medium and low price segment is on average 27 percent for those who change insurance, with the savings potential being greatest for liability insurance at 31 percent.

The companies hope that the sales strategy will work and that the necessary premium adjustments can be enforced among existing customers. According to Schütz, an exciting switching season is expected this year, from which those changing insurance will benefit.

Verivox, together with statistics expert Professor Wolfgang Bischof from the Augsburg University of Technology, determined the motor vehicle insurance index in order to calculate the real price development. Anonymized user calculations at Verivox from October 1st to 10th were included. The statistical model shows the price development for people switching insurance.

These price increases are likely to impact the car insurance market as rising costs lead to higher premiums, making them less attractive to consumers. Quaternions who choose car insurance face higher costs, which can significantly increase their expenses.

Industry experts and analysts should keep an eye on these developments and continue to monitor how pricing trends impact insurance companies' market shares and customers' willingness to switch.