How can I save money on car insurance?

1. Compare car insurance premiums, benefits and quotes

Compare the premiums quoted by a range of insurers as prices can vary enormously. Look carefully at the benefits included – the cheapest deal is not necessarily the best (see the Comparis car insurance comparison tool).

• Think about whether full or partial casco insurance is appropriate for your vehicle. Generally speaking, the older the vehicle, the less likely full casco insurance is worth your while.

• Consider increasing the excess. A higher excess for collision damage reduces the premium considerably more than a higher excess for partial casco.

• Be sure to obtain several quotes and check that the cover matches your needs (see car insurance checklist).

• Only sign a one-year contract or negotiate an annual right to cancel. This is the only way you can benefit from new, low prices each year. It doesn't matter how often you switch insurance, this will not affect your bonus level.

3. Exclude personal belongings

If you took out the add-on "simple theft away from home" or "all-risk" cover as part of your contents insurance, you do not usually need to include cover for personal belongings in your car insurance as well.

4. Take advantage of discounts

Check for multi-policy discounts

Some insurance companies offer a multi-policy discount if you already have another insurance policy with them (e.g. contents or life insurance). Check with your insurer to see if they offer this kind of discount.

Of course, this works with both ways. Perhaps you already have car insurance, but no household insurance.

Buy the right car

Car insurance premiums can vary by type of vehicle. Some insurers apply an eco-discount, for example, while cheaper cars with less powerful engines usually also cost less to insure.

Lower-cost car insurance thanks to reduced premium models

You can save money by agreeing to certain conditions (e.g. repair at a partner garage only, zero-alcohol clause). Think about what you really need and what you can do without. 

Professional groups

Some insurance companies offer discounts to professionals in certain fields or members of academic associations.

5. Exclude passenger accident cover

Passenger accident insurance is an add-on that covers the following costs:

• Cost of hospital treatment

• Daily allowance in the event of a hospital stay or incapacity for work

• Lump-sum benefits in the event of death or disability

The insurance can be taken out separately for drivers, front-seat passengers or all occupants of the car. Compulsory accident insurance provides this cover for anyone living in Switzerland. In many cases, therefore, passenger accident insurance is superfluous. It may be useful if you often have passengers in your car from a country where accident insurance is not compulsory.

6. Choose reduced premium models

Vehicle owners can take advantage of a range of reduced premium models.

Crash recorder and pay how you drive

You can fit a crash or drive recorder to your vehicle. This device can be used to help clarify who is at fault in an accident and can have a positive effect on the premium. Pay how you drive policies (also known as black box or telematics insurance) are also based on the use of in-vehicle data recorders.

Commitment to zero blood alcohol at the wheel

Note that if you choose this model and then alcohol is detected in your blood when you make a claim, you may be required to pay an additional excess of, say, CHF 2,000.

7. Consider leaving out damage while parked

Damage to your parked vehicle caused by unknown third parties is usually covered by full casco insurance, minus the deductible. However, you can reduce this deductible by taking out separate cover for damage while parked.

Check whether this add-on is worth it for you, and exclude it if necessary. If your vehicle is older or mostly parked in your own garage, you can do without this type of cover.

Note that cover for damage while parked is part of partial casco insurance, but can usually only be taken out in combination with full casco insurance.

8. Compare the terms and conditions of insurance

When you're looking for new car insurance, it's worth comparing the general conditions of insurance of the different policies. Insurers are obliged to enclose these with their quote. Pay particular attention to the following three points:

Payout for write-offs

It is important to find out what your insurance company will pay out if you write off your car. Each insurance company has its own compensation table. You can find this table in the general conditions of insurance – it should be easy to spot.

Premium level system

You can take out bonus protection cover to prevent your premiums from going up after a claim. However, this only covers you for one claim per year. It's therefore worth briefly checking the small print to see what percentage your premium would increase by should you need to make another claim.

Search in the general conditions of insurance for "premium level system" or look for the premium level table. This is the only table in the general conditions of insurance apart from the compensation table. Note that a few insurance companies do not have a premium level system. In this case, your premium will stay the same.

Not all cover for damage while parked is equal

If you decide to take out cover for damage while parked, you should compare what the policies pay out in the event of a claim. Insurers differ when it comes to the number of parked car damage claims they will cover each year or the maximum payout per claim – and these differences can be substantial. Search for "damage while parked" or "parked car damage" in the general conditions of insurance. You'll soon notice a difference.