Why car insurance is getting more expensive

When prices rise, there is a lot of anger. We understand that. Numerous economic developments influence insurance. That's true in Switzerland, too. What exactly does this mean?

Repair costs rise 
Persistent bottlenecks in the supply chain mean that spare parts are becoming increasingly expensive. Material costs for steel, plastic and electronics are also continuing to rise. 
A comparison: Today, car spare parts imported from abroad are up to 80% more expensive than 10 years ago. The bumper of a car now costs 56% more than in 2014, and a rear light is a full 79% more. High-tech components such as sensors and batteries also make repairs more expensive. Ten years ago, minor front-end damage to a car cost less than CHF 2,000. Today, sensors or cameras are usually also affected, which means that the damage can quickly rise to CHF 3,500 – that's an increase of 84%.

In addition to the more expensive material costs, garages' labor and wage costs have also risen. 

Severe storms occur more frequently 
Changes in the weather have resulted in more extreme precipitation. For example, hail, storms and flooding often cause serious and costly damage to vehicles – including total loss. It's not just about the major events in the media, but also about a flooded garage in the apartment building next door. 

As a mountainous country, Switzerland is one of the countries with the greatest hail risk in Europe. In addition, daily precipitation has become around 11% more intense and heavy precipitation 25% more frequent since 1901. (Meteo Switzerland) Heavy precipitation and hail occur more frequently in extreme forms. This year's heavy rainfall in Ticino and Valais is a case in point. Landslides and floods occurred there, with devastating consequences.

Zurich Switzerland focuses on prevention: In the summer, for example, we tested a severe weather warning service that warns car owners of heavy rainfall. This allowed you to move your vehicle to a safe place ahead of time and prevent unnecessary driving. In cases where damage nevertheless occurred, Zurich was on hand to assist and support customers, for example with the return of damaged vehicles.

More claims
In addition to storm damage, the number of vehicle claims is increasing – from minor scratches to total losses. The drivers of this trend are factors such as increased traffic density, but also hectic and distracted driving. Cell phones, navigation systems or radios are often being used while driving. This is distracting and leads more frequently to damage. An even more frequent cause is reaching for objects, e.g., something on the back seat.

Insurance companies must pay for insured events. They therefore set the insurance premium in such a way that these costs can be covered. This usually involves calculating the average anticipated claim and the resulting costs. These costs are passed on to all policyholders. Rising claims costs therefore affect the premiums of all policyholders.

There is often still room to maneuver with the existing insurance cover – e.g. if your car insurance was taken out a while ago and it now appears that your needs have changed. There could be potential for savings in the following areas:

Increase your deductible
If you are prepared to pay a higher deductible in the event of a claim, your premium may be lower. Check which deductible options your insurance company offers and how these affect your premium.

Switch from comprehensive to liability coverage
If you have an older vehicle, for example, liability coverage may be sufficient. Switching significantly reduces the insurance premium. 

Find out more about switching from comprehensive to liability coverage

Cancel optional coverage
Check whether you have taken out supplementary insurance or other services that you no longer need.

Use transferable license plates 
If you have several vehicles and they are not driven at the same time, it is worth having a transferable license plate. This means that you use the same license plate for two vehicles. To do this, always affix the license plate to the vehicle you are currently driving – the other vehicle may not be put on the road in the meantime.

These are advantages that you only get from us:

Simple and uncomplicated claims service throughout Switzerland 
Vehicle damage? If you go to Zurich first instead of your own garage, you come out ahead: We organize the repairs and take care of the paperwork. We will find the best solution to ensure the high quality yet low cost of your vehicle repairs – with a lifetime warranty. In the meantime, you can stay mobile thanks to a replacement vehicle, taxi or public transport voucher.

Learn more about Zurich Help Points

Insurance for infrequent drivers
Do you use your car less often than expected or have a camper for vacations? If so, Zurich MyWay may be an inexpensive alternative to your existing insurance – because you don't pay a flat annual premium, just a small monthly basic fee and the kilometers driven.

Learn more about Zurich MyWay

Free charging app for electric drivers
The Z Volt app finds the nearest charging station for your e-vehicle in no time at all. You can charge at all Zurich partners at a standard price – throughout Switzerland and at a great rate. The app is open to everyone – even if they are not insured with Zurich. With Zurich car insurance, however, you get a special rate. 

Learn more about Z Volt