Motor insurers face losses of two billion euros

Motor insurers will still have to spend significantly more money than they earn in 2024. This is according to a current projection by the German Insurance Association (GDV). The main reasons for this are the rising prices for spare parts and high hourly rates charged by garages. Although premium income will rise to around 33.8 billion euros, "insurers will have to spend 1.06 euros on claims and administration for every euro they earn," says GDV Managing Director Jörg Asmussen. Last year, motor insurers already had to accept a loss of over three billion euros.

The poor figures are largely due to the fact that repair costs have been rising for years, because both spare parts and work in garages are becoming increasingly expensive. "Spare parts prices have risen by over six percent compared to the previous year. Workshop costs were already at a record high of 188 euros per hour in 2023," says Asmussen. In 2023, the average property damage claim in a car's third-party liability insurance cost around 4,000 euros, compared to 2,500 euros ten years earlier.

How the current situation will affect car insurance premiums is a decision for each individual insurer and not a matter for the association. "But of course there is a connection between the development of claims and the premiums for car insurance," says Asmussen. (aum)