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Each year on November 30, the usual notice period for auto insurance policies ends. Anyone to whom a price increase from their insurer has been sent home should seek new insurance. This year, prices are particularly low.
Millions of motorists are taking advantage of the fierce price war in the insurance sector this year. According to market research conducted by the Check24 and Verivox comparison portals, for the first time in years, new motor vehicle liability policies have become cheaper. As brokers, both companies distribute a significant portion of new business through their websites.
HUK and Allianz are the market leaders
According to Verivox, new car insurance deals with the cheapest providers in November were on average 3% cheaper than a year ago. Check24 even reports a drop of five percent. The exchanges this year are "rather animated," said a spokesman for HUK Coburg. The alliance states: "We find that competition has become more intense."
This is not surprising: the two market leaders are important competitors. HUK has been a leader in the autopolic industry for many years. By the end of last year, Coburg had insured 11.6 million vehicles, ahead of the Alliance and its 8.5 million vehicles. But the Munich do not want to settle for second place. The largest insurance company in Europe has been offering for a year a new auto insurance policy, which should be simpler and more understandable.
Insurers invest in expensive advertising campaigns
Allianz has been selling its motor vehicle contracts to Verivox since this year, where only its subsidiary Allsecur was represented. Because distribution via portals is not cheap for insurers because they have to pay brokerage fees. For this reason, the HUK stands apart from the portals.
Besides the two best dogs, other competitors are also very involved. These include Cosmos Direkt, belonging to the Italian group Generali, and the French company Axa, as well as ADAC. According to an estimate from the Nielsen Market Research Institute, the expenses of eight insurers for television advertising amounted to nearly 20 million euros for the month of October alone.
Previously, auto insurance prices for years knew only one direction: on the rise. The latest price drop in the industry – new contracts and existing contracts added – was produced in 2010, as shown by data from the Association of Insurance Companies (GDV).
Insurance is cheaper – cars, however, more expensive
The current development shows with what bandages the insurers compete for a share of the market. Because the lowest prices inexorably increase costs. Car manufacturers are increasing the price of spare parts vigorously every year, even in cars more and more expensive electronics are installed. At the beginning of the year, virtually no one in the industry was expecting a price cut.
Hannover Re, the largest reinsurer of auto insurance contracts in Germany, has a good overview. Because every primary insurance company needs a reinsurer to guard against the risks and contingencies of fate. Forecasts for this year are more satisfactory for car owners than for insurance companies. The Hanoverians prophesied in October that premiums would stagnate next year, including existing contracts.
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