Rising repair costs and replacement parts: Why car insurance premiums are rising and what that means for car owners

Rising repair costs and replacement parts: Why car insurance premiums are rising and what that means for car owners

According to a report by www.volksfreund.de, owning your own car will become more expensive in the future. Allianz Insurance and other car insurers posted losses last year, mainly due to increased costs for repairs and spare parts, while customer premiums remained at the same level or even fell. The Allianz announces that the contributions must be adjusted to the increasing costs.

This development has important implications for the market and consumers. Rising vehicle insurance premiums could lead to more and more people switching to alternative means of transport such as car sharing or public transport. This could lead to a decline in vehicle sales and a change in mobility behavior. Additionally, rising costs for drivers could have an impact on the retail and hospitality industries. If drivers have more money to spend on their vehicles, they may have less available to spend in other areas of consumption.

It is therefore important that motor vehicle insurers and the automotive industry develop strategies to address these challenges. This could mean increasing reliance on new technologies to reduce the cost of repairs and replacement parts, or developing alternative insurance models that meet consumer needs in times of rising costs. Overall, developments show that the automotive market and the mobility industry are facing major changes that bring with them both opportunities and challenges.