Plus 8.5% due to weather: expensive partial casco brings trend reversal for car premiums
For the first time in over a year, average annual premiums for motor insurance are more expensive than in the previous year's comparison. This is mainly due to expensive partial cover tariffs: These are currently 8.5 percent higher than 12 months ago. This is what the Verivox car insurance index shows.
Storms make partial casco up to 8.5 percent more expensive
In the partial cover segment, the price turnaround has been apparent for some time now. Here, the average premiums have already been above the previous year's level again since the fall of 2021. At the end of the year, they were 8.1 percent more expensive – currently they are even 8.5 percent more expensive.
This is shown by the motor insurance index, which Verivox compiled in cooperation with statistics expert Professor Dr. Wolfgang Bischof of the Augsburg University of Applied Sciences. Price development compared to the same month of the previous year was examined. As car insurance prices are subject to seasonal fluctuations, this year-on-year comparison is particularly meaningful for mapping general price trends.
Wolfgang Schutz, managing director of Verivox Versicherungsvergleich GmbH, explains the reasons for the price increase: "In 2021, insurers had to pay a particularly large number of storm claims in partial casco. This led to price increases in this line of business. Not all providers have yet priced in these additional costs. This is why this expensive trend in partial casco could continue in the coming months."
Prices up year-on-year again for the first time
In the fall, favorable prices in other insurance lines initially offset the increase in partial cover rates. In the meantime, however, higher liability prices (+3.6%) are also contributing to the general increase in prices on the motor insurance market. The continued favorable prices in the comprehensive insurance segment have a dampening effect on costs. Drivers are currently paying an average of 5 percent less than a year ago.
In the mix of all insurance types, the average prices have been above the previous year's level again since December. Previously, they were cheaper throughout 2021. In November 2020, they were above the previous year's level for the last time. The current year-on-year price increase is around 1 percent.
26 percent savings potential with favorable tariffs
The new expensive trend has not yet fully arrived in the low-price segment. Only in the partial cover segment are the prices of the cheapest tariffs just under one percent above the level of the previous year, in all other types of insurance they have fallen. On average across all lines, insureds pay around four percent less for the cheapest offers than they did a year ago. As a result, there is currently a gap of 26 percent between low-cost offers and rates from the mid-price segment.
"Even price-conscious drivers don't have to do without comprehensive insurance cover," says Wolfgang Schutz. "The market comparison shows that even many rates in the lowest price segment include important benefits such as protection in the event of damage due to gross negligence or a Majorca policy."
Methodology / Motor insurance index:
Verivox calculates the car insurance index together with statistics expert Professor Dr. Wolfgang Bischof from Augsburg University. "For the car insurance index, we use a statistical method that reflects the real price development of insurance rates," says Wolfgang Bischof. "Simple average calculations based on concluded insurance premiums would lead to incorrect results, because changes in customer groups are not taken into account in the process." Motor insurance index shows price trends in new business.