Car insurance premiums are skyrocketing, according to comparison sites. The average premium increased every month this year. Inflation plays a role, but cars are also becoming heavier and more advanced, which makes repairs more expensive.
According to Pricewise, premiums in June were on average 18 percent higher than a year earlier. The increase applies to all types of car insurance: third-party liability, limited coverage, and comprehensive. With comprehensive, the most extensive coverage, drivers pay the highest monthly premium.
The increase in the premium is not only a result of inflation. “There are more and more different and heavier vehicles on the road,” says Stefan de Gooier, insurance expert at Pricewise. “The extra weight causes more damage in the event of collisions.”
According to De Gooier, cars are indeed getting bigger, partly due to the rise of electric vehicles (EVs). “Plug-in cars are heavier due to their battery packs. Moreover, electric cars remain more expensive than fuel models, which is reflected in the premium.” EVs are often also more complex, which makes repairs more complicated. “For some new Chinese models, parts may not be available in garages.”
Independer, another insurance comparison site, also reports rapid increases in monthly premiums. Michel Ypma, insurance expert at Independer, agrees with De Gooier and also cites traffic density as a cause of the premium increases. “There are more and more cars on Dutch roads, so the number of accidents is increasing.”
Do not use a smartphone while driving
Inattentiveness is therefore punished more by insurers, for safety and to save money. “Companies are increasingly including a clause in the car insurance policy, which clearly states that you may not use a smartphone while driving. This is prohibited by law, but a violation may be a reason not to pay out.”
Experts expect premiums to continue to rise as cars get bigger and electric cars become more popular. Claim-free years are therefore becoming increasingly important. They provide a premium discount for motorists who do not report damage.