Insurance companies: Record low premiums
WENDE Premiums for insurance for cars have reached a record low. Comprehensive insurance costs an average of 8.4 percent less than the previous year. Premiums have fallen significantly since 2017. Comprehensive insurance for 30- to 40-year-old car drivers costs an average of 842 francs. This is shown by a current analysis of the Swiss online comparison service Comparis. The biggest drop in premiums within three years [...]
Comprehensive insurance for 30- to 40-year-old car drivers costs an average of CHF 842. This is the result of a recent analysis by the Swiss online comparison service Comparis.
The biggest drop in premiums in three years was recorded by vehicles in the upper mid-range segment. Since 2017, premiums have fallen by 18.5 percent (new vehicle value 44,000 francs). The average comprehensive insurance premium here is now 898 francs.
Low premium shrinkage for small cars
The smallest decrease in premiums is seen in small cars. However, even in this category, the premium erosion amounts to 13.6 percent. Comprehensive insurance for a small car costs an average of CHF 697 (new vehicle value CHF 22,000).
Owners of a mid-range car (new vehicle value: CHF 33,000) pay an average of CHF 815 (down 14.9 percent since 2017).
Competition with online providers
Comparis mobility expert Andrea Auer: "There are many reasons for the decline in premiums. Among other things, the market entry of online providers has massively intensified competition in recent years. Traditional providers have been prompted to launch more low-priced online products."
Comparison of premiums before the conclusion
In its analysis, the comparison service looked not only at premium trends but also at the average price difference between the cheapest and second cheapest offer.
The result: when comparing premiums, drivers can save an average of 5.8 percent by choosing the cheapest offer over the second cheapest. For a quarter of users, this savings potential is as high as 6.4 percent.
Andrea Auer: "Digitalization enables insurers to cut prices without suffering serious margin losses. The decline in premiums will continue. However, it will be less than in previous years."
Setting the premium with telematics solution
Some insurers offer so-called "pay as you drive" models. Here, the premium is calculated by means of a telematics solution based on the driving behavior of the policyholder.
Andrea Auer: "Such individually tailored solutions will increasingly enter the market in the future."
