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Expensive appointment: our editor Tobi Fischbeck (l.) assessing the hail damage to his car after the big storm on July 12, 2023 in Taufkirchen. © Birgit Lang
Storms and high workshop costs: Experts explain why car insurance is increasing.
Dorfen – It’s been like a dovecote for days at the Dorfen insurance broker Josef Jung. Now, shortly before the peak of the change season, many drivers have received mail from their car insurance companies and are amazed at price increases of around 25 percent. For some, this is 100 euros or more, says Jung. Comparison is important right now. The deadline for termination for many insured persons is November 30th.
“Increasing storm damage such as hail was priced in. The workshops and the delivery of parts have also become more expensive,” he explains. Because wages and energy costs have risen, hourly rates and material costs have also become more expensive. These additional costs would be passed on. “The insurers had to react to that. This year everyone has increased across the board,” the expert notes.
Even if the insurance companies had explained to their customers why this increase in prices was necessary, the question often remains as to whether a change would be worthwhile. “The answer is ‘Yes, sometimes,'” he says. As a broker, he always runs individual contracts through his program at this time of year to find possible cheaper providers.
Only compare like with like
Jung warns against “magicians” in the industry who would simply remove services from contracts, for example the extended wildlife damage clause or discount protection. “But then the customer is worse off in the event of damage. He saves on car insurance, but in the event of damage it will be upgraded.” The Dorfener therefore advises all insured people to make sure to “always compare the same with the same. Otherwise it is unfair and dubious.”
Check annually: this is what insurance broker Josef Jung advises. © private
Since Monday last week, Karl Valentin has also had nothing to do other than calculate and educate customers. He runs a Signal Iduna general agency in Taufkirchen and emphasizes, “When I compare our products with our competitors, we’re not doing so badly.” If a customer would like to take out insurance online, he is free to do so, but point out to him that he will then no longer have any advice.
He tried to clarify things in advance. “Anyone who followed the media would have known that something could happen,” he explains. There were price increases of up to 30 percent across the entire market. And the regional classes have often increased due to storm damage.
Valentin points out that the companies lost two billion euros in vehicle insurance last year. He also attributes the price increases to major storms such as the hail on July 12, 2023 in Taufkirchen as well as increased workshop and spare part costs. He has been in business for 20 years, but he has never seen such an increase.
Adjusting screws in the contracts
“I would like to make it cheaper for everyone, but I can’t. We have little room for maneuver,” said the 40-year-old. But you can take a close look at the driver group, mileage, deductible, free choice of workshop or partner relationship as well as payment method and maybe get something out of it.
His colleague Thomas Götzberger from the Allianz general agency in Taufkirchen points out increased workshop costs. Anyone who had hail damage the previous year may have experienced it themselves and often had more understanding of the increases. The insurance companies would have to follow suit, otherwise they would have fallen even further into the red, he points out. (See also survey below)
## Open-Ended Interview Questions Based on the Article:
This article discusses rising car insurance costs in Germany, focusing on increasing storm damage, workshop costs, and savvy comparing practices for consumers.
**I. Impact of Storms and Workshop Costs:**
1. **The article mentions hailstorms like the one in Taufkirchen as a cause for rising insurance costs. What are your thoughts on the long-term impact of increasingly severe weather events on car insurance premiums? Should car insurance adapt to reflect climate change?**
2. **Workshop costs are cited as a major factor. What can be done to address the rising costs of labor and materials in the automotive repair industry and its impact on insurance companies and consumers?**
3. **Do you think insurance companies are adequately communicating the reasons behind the price increases to their customers? How can transparency and communication be improved?**
**II. Comparison and Consumer Choices:**
1. **The article highlights the importance of comparing insurance policies. What advice would you give to consumers who are feeling overwhelmed by the process of comparing different providers? Are there any tools or resources they can utilize to make informed decisions?**
2. **”Magicians” in the industry who cut corners on coverage are mentioned. What are some red flags consumers should watch out for when comparing insurance quotes? How can they ensure they are getting adequate coverage without being overcharged?**
**III. Role of Insurance Companies and Brokers:**
1. **What measures can insurance companies take to mitigate the impact of rising costs on their customers? Are there alternative solutions they could explore beyond simply raising premiums?**
2. **How can insurance brokers best serve their clients in this current climate of rising costs? What value do they bring to the table for consumers navigating the complex world of car insurance?**
3. **The article touches upon differing perspectives from various insurance providers. In your experience, what are the main challenges and opportunities for the car insurance industry in the coming years?**
**IV. Consumer Perspective:**
1. **How has the increase in car insurance premiums affected your personal finances and driving habits? Are you considering making any changes to your insurance policy or driving behavior in response?**
2. **What are your thoughts on the level of customer service provided by insurance companies? Do you feel valued as a customer, or are you treated as just another policy number?**
3. **How do you think technology can be leveraged to improve the car insurance experience for consumers? What innovations would you like to see in the industry?**
These open-ended questions encourage dialog, critical thinking, and diverse perspectives on the complex issue of rising car insurance costs.
Each question is designed to delve deeper into the
themes presented in the article and spark a meaningful conversation.
