Car insurance: young foreign drivers pay up to 74% more
A recent Comparis study shows: car insurers sometimes charge foreign nationals far higher premiums than the Swiss.
20.08.2024
iStock/Eva-Katalin
1. Do foreigners pay more for car insurance?
Foreign nationals in Switzerland sometimes pay significantly more for their car insurance than Swiss people. This is what our recent analysis of full casco insurance premiums shows.
Our findings:
The average premium surcharges for full casco insurance are up to 74.4% compared to Swiss drivers.
Young drivers from Kosovo, North Macedonia and Turkey pay the most.
For experienced drivers, the foreigner surcharges are up to 54.8%.
Nationality is an important criterion for insurers to calculate the probability of a claim occurring – even if it seems unfair.
Interestingly, Swiss people may also be affected by the premium surcharges according to nationality. For example, German drivers sometimes pay less than Swiss drivers. This phenomenon can be seen in several regions and for different car models.
For the survey, Comparis compared insurance premiums for the following nine nationalities: Switzerland, Germany, Spain, France, Italy, North Macedonia, Portugal, Turkey and Kosovo. In June 2024, 85,483 online quotes were examined.
Selected vehicles (prices excluding taxes):
Cupra Formentor Hybrid (49,630 francs), Fiat 500 model 2015 (21,254 francs), Mercedes-Benz GLC Class 2022 (73,630 francs), Škoda Octavia Combi petrol 2020 (38,446 francs), Tesla Model Y (46,244 francs), VW Golf VIII petrol 2020 (40,056 francs); year of purchase 2024, date of first registration January 2024. Not leased.
Driver profiles:
First driver profile: age 42 years, male, driving licence for 24 years. Second driver profile: age 20 years, male, driving licence for two years. The following applies to all driver profiles: no claims, refusals or debt rescheduling with previous insurers. Regions: five postcodes each for Basel, Bern, Biel, Geneva, Lausanne, Lucerne, St. Gallen, Ticino, Winterthur and Zurich. Foreign nationals who hold a residence permit C.
Cover profile:
Full casco, annual kilometres 12,000, including bonus protection and parking damage cover (without unlimited damage), no passenger accident insurance, no breakdown cover, no gross negligence cover, personal belongings not insured, private use with garage, insurance starting on 20 June 2024. Deductibles: collision casco 1,000 francs, partial casco: 0 francs. The deductible for liability insurance is variable. Important: additional cover may differ, as some insurers offer dynamic add-ons or individual types of cover may be included as standard (e.g. breakdown cover).
Insurers:
Allianz, AXA, Baloise, Helvetia, Elvia, Generali, Helvetia, Postfinance, Simpego, Smile, TCS, Zurich.
2. Which nationalities pay most for car insurance?
The biggest premium difference compared to the Swiss is found among 20-year-old Kosovars in the city of Basel who drive a Mercedes-Benz GLC. Here, the premium surcharge is 74.4% on average. North Macedonians (73.6%) and Turks (72.9%) follow in second and third place respectively – also in Basel and with a Mercedes-Benz.
3. How are car insurance premiums changing?
Drastic price increases can be seen for car insurance. This is shown by another Comparis analysis (in German only) from August 2023. In the second quarter of 2023, the average full casco premium for new customers and various vehicles was 17% higher than in the second quarter of the previous year. This is a price difference of 142 francs.
How can I save on premiums?
Regardless of the premium amount, the differences between the providers are substantial. By comparing car insurance deals, you can also save on premiums.
Another tip for saving: think about what cover you need. For older vehicles, full casco insurance is often no longer necessary.
This article was first published on 18.08.2023
