The independent comparison site The Lender signals that the car insurers are going to raise their premiums to overcome their losses in 2009. This is despite the profit that car insurers made in 2010, according to National Bank (ABC). A number of insurers have already announced that they have increased their premiums. The increase in the premium varies from a few percent to 50%. In addition, insurers set increasingly precise premiums, for example at street level instead of per region. With the premium increases, the many years of fall in the premium has come to an end.
Profit from car insurers
In 2007, according to ABC, the profit on the WA motor insurance was still 328 million euros. In 2009 the car insurers made a joint loss of 15 million euros. In 2010, the insurers jointly made another profit of 46 million euros, according to the figures that ABC published on 9 August.
The ABC is concerned about the low motor insurance premium. According to the regulator, the financial position of an insurer may be compromised. This happened at Ineas in October 2010. The ABC has therefore urged all motor insurers to build up larger reserves in order to survive even in financially worse times. This request has led to cuts in costs and premium increases for various insurers.
Premium increase car insurance
The fourth largest motor insurer in the Netherlands, Universal, announced in December 2010 that it would raise premiums by five percent. But the most striking increase is the “Auto-online” product from Acura: 50 percent and the deductible with 250 euros because of the claims burden in the target group for this product. London, BWAN, ASR, Baguio, Genz, La-Agwas, Turien and Co and Lagarant also increased their premiums in 2011. “We expect this development to continue and that more car insurers will increase their premiums this year,” said Erik Hordijk, director of The Lender. “Not all car insurers have raised their prices yet. So it pays to compare car insurance policies . “
Huge price difference
The price difference between companies is still huge. But the average premium has stabilized. With the same coverage, an expensive insurer charges on average 2.7 times as much for a car insurance as a cheap company. These cheaper companies also often have better conditions than the more expensive ones. Consumers who have had the same car insurance for more than two years can easily save 200 euros a year by switching.