In 2011, consumers will pay more for their car insurance. Insurers suffer massive losses on the third-party insurance policy because the premiums are too low. Compared to neighboring countries, insuring a car in the Netherlands is on average three times cheaper. Klaverblad, Unigarant and Univé recently adjusted all their premiums. The independent comparator Puss in Boots expects more car insurers to follow and raise their rates in the short term.
Loss on liability insurance
Last month, Daisy National Bank (DNB) expressed its concerns about the premium being too low. This could, according to the regulator, jeopardize the financial position of an insurer. For example, Increase was declared bankrupt in October 2010. DNB’s figures speak volumes. While the profit on the WA motor insurance in 2007 was still 328 million euros, in 2009 car insurers recorded a joint loss of 15 million euros.
Car premiums in England, Germany and France considerably higher
Puss in Boots investigated what people pay in England, Germany and France to insure a car as standard as possible. On average, the prices for car insurance there appear to be three times higher than what the Dutch pay for liability insurance. For this, various profiles in London, Berlin, Paris and Amsterdam were compared.
Car insurance premiums inevitable
At the end of 2005, a price battle erupted between car insurers. In the space of five years, rates for a WA car insurance policy have fallen by no less than 20 percent. “The profitability of insurers is declining rapidly. Initially, this can still be offset by investment gains, but in 2008 the credit crisis will throw a spanner in the works, ”explains Yayo Seal, director of Puss in Boots. “In the last two years, car premiums have remained fairly stable. But a price increase now seems inevitable. “
Extra price increase due to increase in insurance tax
In addition to the expected premium increase, there is also the increase in the insurance tax. As of March 1, the insurance tax will be increased by 2.2 percent to 9.7 percent. Switching now means that many Dutch people can still benefit from the relatively low rates. Premium increases for existing customers are only implemented on the main expiry date.