Car insurance companies are also facing rising expenses due to high inflation. This could also mean an increase in premiums.
Due to the threat of billions in losses from car insurers, customers must prepare for rising premiums from the point of view of the General Association of the German Insurance Industry (GDV). “Of course there is a connection between the development of damage and the contributions for car insurance,” said GDV General Manager Jörg Asmussen. Whether and to what extent the insurers adjust the contributions is a decision of the individual companies “and not a matter for the association”.
According to the GDV, insurers will face a total loss of more than 2.5 billion euros this year. “This year, drivers will pay around 30.2 billion euros to insure their vehicles – but insurers will have to spend over 32.8 billion euros on damage and administration,” Asmussen said. The reason for this is the high inflation. “Both the spare parts and the work in the car workshops are becoming more and more expensive.” In addition, with the end of the corona restrictions, there were significantly more accidents again.
While insurers’ income is likely to rise by 3.7 percent this year due to inflation, the GDV assumes that expenditure will increase by around twelve percent.
Source: Stern
