With all of the price hikes in Switzerland it is difficult to believe inflation is running at around 2% (it was 1.4% in November 2023). Health insurance premiums in 2024 are on average 8.7% higher than they were in 2023. Now Swiss car insurance is set to get more costly. The insurance advisor VZ predicts an average rise of 15% for vehicle insurance in 2024, reported RTS.
The average expected rise is 15%. However, some premiums may rise by as much as 50%, said VZ.
One reason behind the rise seems to be inflation. New car prices have jumoped by 6% and second hand car prices are up by an average of 20%. In addition, car parts are 16% more expensive and the running costs of workshops have risen, for example electricity has risen significantly in price.
Despite these rising underlying costs, not all premium hikes are fully justified. When adjusting premiums there is a temptation for insurance companies to push prices a little higher to improve margins. Premiums that rise 30% can hardly be justified on a rising cost basis, said a representative of VZ.
Fortunately, there is a way out. The rules in Switzerland allow policies to be cancelled with 30 days notice before their anniversary if there is a premium increase. This must be done in writing and the reason, in this case a price increase, must be stated in the communication. It is then possible to shop around to find a new policy. Insurance companies tend to offer better prices to new customers to lure them.
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