Premium shock: car insurance increases by up to 25 percent!

Premium shock: car insurance increases by up to 25 percent!

Car insurers in Switzerland are currently facing a challenge: premiums for car insurance have been increased by up to 25 percent. This affects well-known providers such as Zurich, Mobiliar, Baloise, Axa, Helvetia, Smile and Allianz Suisse. The reasons for this increase are diverse and reflect current market developments. Companies have responded to rising repair costs, more frequent storms and an increase in accidents. However, many insurers react to the increase by pointing out that these measures will not allow them to work profitably, especially in fully comprehensive insurance The investment reported.

Zurich Insurance justified the premium increases with, among other things, the more complex vehicle technology and the increased prices for spare parts. What is particularly noticeable is the increase in the costs of imported spare parts, which have increased by over 18 percent since 2021. In addition, possible future effects of new US tariffs on savings in the car supply chain were raised. The traffic density in cities is also increasing, which increases the frequency of accidents, and frequent major loss events, such as increased hail damage, also put greater pressure on premiums.

Rising costs and adaptation strategies

In addition to the factors mentioned, Baloise has also linked the increase in premiums to an increase in expensive vehicles. This development means that around a third of insured people were already affected by higher premiums at the beginning of the year. Due to rising labor wages and energy costs, further price increases in the industry are likely.

In order to reduce the financial pressure, the HDI is planning, for example, measures to cushion costs that focus on “repair before renewal”. Collaboration with partner workshops will be expanded in order to offer an attractive repair service. The long-term effects of this repair clause, which comes into force from 2045, are intended to promote competition and thus dampen the prices for spare parts.

Customer reactions and future developments

Many customers show understanding for the necessary premium increases. This could indicate that policyholders recognize the need to help their insurance company remain profitable. Insurers like HDI already calculate their tariffs according to current developments and the requirements of Bafin, which requires claims inflation to be taken into account when calculating premiums.

A notable aspect is that the motor vehicle insurance industry already offers regionally differentiated prices. No further differentiations are currently planned. At the same time, it is becoming clear in the industry that higher deductibles in fully comprehensive insurance should be made more attractive in order to make possible adjustments easier for customers.