Why car insurance is becoming more expensive and what that means for drivers

Why car insurance is becoming more expensive and what that means for drivers

According to a report by www.volksfreund.de, it is clear that owning your own car is not getting cheaper. Allianz Insurance and other motor vehicle insurers were in the red last year. This is mainly due to the increased costs of repairs and spare parts, while customer contributions have remained at the same level or even become cheaper. According to Allianz, this is now changing: “Because prices continue to rise, contributions must be adjusted to price developments.”

This development has a direct impact on the motor vehicle insurance market. The increased repair and replacement costs mean that insurers have higher financial burdens. To compensate for the red numbers, insurers have to adjust customer premiums, which leads to higher costs for consumers. This could lead some consumers to decide to forego insurance or consider alternatives such as car sharing or public transportation.

In the motor insurance industry, these developments will lead to increased competition as insurers will try to put together attractive offers to attract customers. This could lead to price fluctuations and new tariff models that affect the industry as a whole. It remains to be seen how the industry will respond to these challenges and how customers will adapt to rising costs.