Car Insurance: How to Spot a Hidden Increase | Car & Traffic

There it is in the mailbox, the bill for the car insurance. Phew, lucky, no higher amount than last year. But be careful, a price increase can be hidden behind it and even behind a lower amount than in the previous year, informs “Finanztip”. The insurer could then have already offset discounts with an increase after an accident-free year and thus cheaper premium rates.

The settlement amount can be well hidden

The provider must show a hidden increase on the invoice – separately for comprehensive insurance and liability – and provide a comparison amount from the previous year. “But it’s often not that easy to find on the invoice form,” says Hermann-Josef Tenhagen, editor-in-chief of the money guide.

Only if the current amount has not increased in comparison, no price increase has taken place. If it has increased, you have a special right of termination, which applies one month from receipt of the invoice.

Calculate the comparison amount yourself using the calculation formula

You can also calculate the comparison amount yourself using a calculation formula: To do this, multiply the old contribution in euros by the new contribution rate in percent and divide by the old contribution rate.

Example of motor vehicle liability: The old contribution amounts to 500 euros and the new invoice only shows 480 euros. However, the insured person moved from no-claims class (SF) 2 (old contribution rate: 49%/0.49) to SF class 3 (new contribution rate: 46%/0.46).

The calculation is: 500 euros x 0.46 divided by 0.49 equals 469.39 euros. Here the comparison amount is smaller than the new invoice amount – so there was a hidden premium increase.