Insurances: Who pays in case of total loss?

If there is a total loss, the owners usually get more back from their comprehensive insurance than the vehicle was worth at the time of the accident, according to calculations by the online comparison service Comparis.

Comparis mobility expert Andrea Auer: "Particularly with older vehicles, it can pay off to switch insurers."

Reimbursement up to 95 percent
The differences in compensation for total loss are greatest in the second year of operation. Ten of the 14 insurers analyzed still reimburse the full purchase price even for 18-month-old cars.

These are AXA, Basler, Dextra, Mobiliar, Generali, Helvetia, Kasko2Go, Smile, TCS and Vaudoise. Postfinance and Zurich provide a refund of 95 and 90 percent respectively. Allianz and Elvia still provide 86 percent of the purchase price.

Different product design
In the Comparis comparison, the providers with the best benefits thus pay 86,600 francs for a broken BMW X5. Customers of Allianz and Elvia receive 74,476 francs for the same car. This corresponds to a difference of 14 percent or 12,124 francs.

Andrea Auer: "The differences can be explained by different product designs on the part of insurers. This means that some insurers classify a total loss as more important than other benefit components with a view to the target clientele."

Up to 24 percent higher reimbursement
In franc terms, the differences in payout are greatest for 18-month-old cars, but in percentage terms, the differences are higher for 6.5-year-old cars, at up to 24 percent.

In the Comparis calculation, motorists receive CHF 13,439 for a total loss of a 6.5-year-old Skoda Octavia (replacement value: CHF 26,040) with Vaudoise. Zurich pays the least in a total loss case with 11 067 francs. That is 2372 francs or 21 percent less. In the case of the more expensive BMW X5 (new value 86,600 francs), the difference is almost 10,000 francs or 24 percent.

Remuneration amounts at a glance

Andrea Auer: "The amount of the insurance premium is not related to the compensation sum in case of total loss. The premium calculation depends on many individual factors. Insurance policies with good current value benefits therefore do not have to be expensive."

The direct insurer Dextra still pays the full purchase price in the event of a total loss in the second year of operation. Allianz, on the other hand, only pays 86 percent.

A 30-year-old car owner in possession of a BMW X5 pays an annual premium of 1375 francs for comprehensive insurance with Dextra. Allianz, on the other hand, charges 1721.50 francs.

Is an insurance comparison worthwhile?
The calculation of the total loss compensation in the eighth year of operation is usually based on the vehicle's current value. For younger cars, most insurers assume the replacement value (except Basler, TCS and Vaudoise).

Six out of 14 providers reimburse an additional ten percent of the vehicle's new value on top of the current value from the eighth year of operation onwards. Generali and Zurich, on the other hand, only reimburse the current value for vehicles over seven years old.

Compensation over vehicle life cycle
The insurers Dextra, Kasko2Go, Postfinance and Vaudoise compensate ten percent of the replacement value until the end of the vehicle's life cycle.

Andrea Auer: "Drivers thus always receive at least ten percent of the replacement value, even for older vehicles."

In the case of the BMW X5, drivers would receive at least 8600 francs from these providers in the event of a total loss. A comparison is therefore recommended, especially for older vehicles.

Trend towards replacement value compensation
Compensation according to current value is standard in the insurance industry. However, since last year, providers have increasingly offered to insure multi-year vehicles at replacement value.

This means that car owners are reimbursed the full purchase price in the event of a total loss - up to the seventh year of operation with Basler Versicherungen and TCS, and up to the fifth year of operation with AXA, Mobiliar and Zurich.

comparis.ch