Smart savings on policies

DWith high inflation, there are good reasons for consumers to scrutinize all unnecessary spending. On average, German drivers pay around 250 euros for a motor vehicle liability policy, which is mandatory, and slightly higher premiums for (comprehensive) protection on their own car. Comparison portals calculate every year that there is potential for savings.

This year, the response has been particularly strong – especially among consumers who have already saved on their regular expenses. Despite the fierce competition in this line of business, insurers will not be able to avoid raising prices if they do not want to run the risk of becoming unprofitable.

When it comes to insurance, there are smarter and less smart ways to save. Under no circumstances should consumers reduce essential services so that their risk increases. Reducing sums insured or choosing insurers with poor financial ratios are not a solution. On the other hand, it can make sense to switch years later to a competitor who has comparably good indicators but offers the same contract content at a lower premium.

It can help to find out about alternative offers and to talk to your own insurer. Providers have no interest in losing long-standing customers whose driving data they have fully documented and who have proven to be beneficial risks.

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