Insurance expert explains: What New Year's Eve damage costs and how insurance covers it

Insurance expert explains: What New Year's Eve damage costs and how insurance covers it

According to a report by www.wa.de,

Not only do New Year's Eve fireworks cause environmental damage, but they can also cause significant property damage to cars, buildings and other items. According to Thorsten Brünner, spokesman for the Federal Association of German Insurance Merchants (BVK), insurance companies pay around 37 million euros in damages caused by New Year's Eve fireworks every year. This includes damage to cars, homes, clothing, electrical appliances and buildings. It is emphasized that private liability insurance offers protection against claims from third parties as long as common New Year's Eve firecrackers are used properly and carefully.

The impact of these losses on the insurance market could be an increase in claims and an adjustment in insurance policies. With insurance companies having to cover millions of euros in damage caused by New Year's Eve fireworks, they could be forced to increase insurance premiums to offset rising costs. This could prompt consumers to explore alternative insurance options to avoid rising costs. It is also important to note that when injuries and permanent personal injuries occur, costs can be very high and insurance companies and other entities may attempt to recover these costs from those responsible.

The market for fireworks products and accessories could also be affected as consumers may become more cautious when purchasing fireworks to avoid unexpected damage and costs. Government regulations could also tighten to minimize the risks and harm associated with fireworks.

Overall, the data suggests that the impact of New Year's Eve fireworks on the insurance market, consumers and the fireworks industry may be far-reaching, as it could trigger financial, regulatory and behavioral changes. It remains to be seen how insurance companies, consumers and government agencies will respond to these developments in the future.