Most car insurance policies run until the end of the year, with a four-week notice period. So you have to cancel one month in advance. And because November 30th is a Saturday this year, the deadline is extended to December 2nd.
Industry is in the red
Motor vehicle insurers are under pressure. The costs for repairs have been rising steadily for years, primarily due to expensive spare parts and high workshop costs. This is shown by bills from the General Association of Insurers (GDV). According to this, property damage in motor vehicle liability insurance cost an average of around 4,000 euros last year; ten years ago it was 2,400 euros.
This leads to high losses for insurance companies. According to the GDV, the companies made a loss of three billion euros last year and this year it is expected to be between 1.3 and two billion euros.
Price increases were allowed to continue
After premiums were raised significantly last year due to the red numbers, things will probably become more expensive again this year. The two major insurers in this area, Huk Coburg and Allianz, have already announced this, but without giving any specific figures. The managing director of GDV Jörg Asmussen also points out that the insurance regulator Bafin expects motor vehicle insurers to take appropriate account of “claims inflation” when calculating their premiums.
When asked, the comparison portal Verivox said that prices across all types of insurance are currently around 25 percent higher on average than last year. However, Huk Coburg is not represented on the comparison portal. There is no end to inflation in sight, says Verivox managing director Wolfgang Schütz. He expects prices to be higher next year and points, among other things, to the increasing complexity of modern cars. Cameras, sensors and electronic systems make repairs even more expensive, says Schütz.
When asked, its competitor Check24 did not want to provide any further information. The extent to which possible price increases affect individual customers depends on many factors, especially the choice of insurer, but also the structure of the tariff.
High competitive pressure among insurers
Customers can easily compare vehicle insurance policies and get different offers with just a few clicks on the Internet. All you need is the vehicle registration document, a few details about your person and place of residence as well as the respective no-claims class, which indicates how many years you have been driving without an accident.
Since a comparison is quite easy and you can potentially save money in the process, customers’ willingness to switch increases. According to the ADAC, every second driver has changed car insurance in the last five years. This in turn puts pressure on insurers not to raise premiums too much if they don’t want to lose too many customers and market share.
