Price increases in car insurance: drivers have to save again

Price increases in car insurance: drivers have to save again

The effects of the current price increases in the area of car insurance are noticeable for many drivers in Germany. Experts warn that the reasons for this increase are particularly important for consumers, since they could not only influence the insurance premiums, but also the general economic situation.

The background of the price increases

One main cause of the latest price adjustments is the exploding repair costs. The prices for spare parts and maintenance work in workshops are continuously increasing. These costs are directly surrounded by customers, which is particularly problematic for owners of electric vehicles. An example of this are the high expenses for the exchange of batteries and the associated long workshop content. These developments mean that insurers have to increase the premiums in order to continue working economically.

The responsibility of the insurers

Several large car insurers had to accept enormous losses last year. For example, the insurer recorded an alarming damage cost rate of 120 percent, which means that the insurer spends more damage than he takes. This shows that the industry is in a serious crisis that cannot be ignored.

economic effects on consumers

The current situation could have serious financial consequences for many people in Germany. In the case of an estimated increase in prices by an average of eight percent, not only will the insurance premiums increase, but also the willingness of consumers to compare and change insurance will also increase. Online comparison portals promote this tendency because customers are increasingly looking for the best offers.

reactions of the financial supervision

Financial supervision Bafin has also found clear words with regard to the price increases. She warned the insurance industry that a permanently deficient situation was not sustainable. The request to the insurers to check their price strategies could lead to stabilizing the market in the long term.

an outlook on the market

The reactions of the industry to these developments will be crucial. Consumers should be aware that they are not only passive participants, but also actively have the opportunity to influence the market by regular comparisons of offers. Even if the change may not always lead to a reduction in contributions, the competition could help to relax the price situation as a whole.

The coming months will show how the insurers react to the current challenges and whether they are able to continue to offer their services at a fair price while they are also trying to get the cost situation under control.

- Nag