Car insurance: premiums increase by 17 percent
Due to inflation, premiums for car insurance are also rising: the average premium is 17 percent higher than in the previous year. Find out how you can still save here.
18.08.2023
iStock / Eva-Katalin
1. How are car insurance premiums changing?
There are drastic price increases for car insurance. This is shown by an analysis of full casco premiums for new customers of the online comparison portal comparis.ch. In the second quarter of 2023, the average premium for various vehicles was 17 percent higher than in the second quarter of the previous year. This is a price difference of 142 francs.
For the period 1. January 2018 to July 31, 2023 Comparis has analysed quarterly car insurance prices in Switzerland. Only premium offers for the VW Golf, VW Polo and Škoda Octavia models were taken into account, which had a clear minimum number of premium offers in each quarter.
It was taken into account that these car models occur with different frequencies. Other factors:
Vehicle age: maximum ten years
Number of kilometres driven: maximum 100,000 km
Deductible for partial or full casco: 0 francs or a maximum of 1,000 francs
2. What do the insurance companies say about this?
Many insurers agree with Comparis’ findings: the current inflation is driving up premiums. This is because prices for spare parts or repairs have risen. According to the Comparis Consumer Price Index, the cost of electricity alone rose by 25.5 percent compared to the same quarter of the previous year. In addition, insurers are confronted with higher premiums for reinsurance for cover such as hail.
However, price adjustments are likely to increase to varying degrees depending on the provider. That’s why it’s important to compare different insurance companies.
3. Can I still save on car insurance?
Despite the price increase in recent months, insurance premiums are still 4 percent lower than five years ago. Those who have not changed car insurance for a long time can benefit from cheaper premiums.
Another tip for saving: think about what cover you need. For older vehicles full casco insurance is often no longer necessary.
Do foreigners pay more for car insurance?
A Comparis analysis from 2022 has shown:
Foreigners often pay much more for car insurance than Swiss nationals.
Citizens from the Balkans and Turkey are particularly affected, with an average premium surcharge of around 60%.
Some insurers charge them almost twice as much.
The surcharges vary depending on the insurer. Basel-based insurance companies (Produkt «BaloiseDirect M»), TCS (Produkt «M») and Helvetia (Produkt «Premium») charge over 80% higher premiums for Kosovans, Serbs, Albanians and Turks than for Swiss.
Generali, on the other hand, does not have a premium surcharge for foreigners. It’s worth comparing individual providers. The same applies to Swiss people.
This article was first published on 18.08.2023
