German FAZ: This is how car insurance becomes cheaper008131

Many drivers are likely to receive unpleasant news from their vehicle insurance company these days: premiums for vehicle insurance are rising across the board – estimated by an average of around 7.8 percent. The reason for this is the increased costs for damages that insurance companies had to pay. “The costs for car spare parts are rising rapidly and are largely independent of general price developments,” says Anja Käfer-Rohrbach, deputy general manager of the General Association of Insurers (GDV). While the consumer price index has risen by around 28 percent since 2014, car manufacturers have increased their spare parts prices by an average of almost 75 percent. But not only spare parts, but also hourly rates in vehicle workshops have become significantly more expensive. “Average property damage in a car’s motor vehicle liability insurance costs around 4,000 euros. Ten years ago it was still 2,500 euros,” explains Käfer-Rohrbach. Higher costs, which are now passed on to the insured in the form of higher contributions.
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