Car Insurance Premiums Vary Enormously, How is That Possible?
“Why is it that the price of one car insurance can differ so much from the other?” It is a question my badminton friends often ask me during training. And rightly so, because as unsuspecting consumers, how can you explain yourself that an expensive car insurer requires nearly three times as much for the same coverage as the cheapest airline?
Competitive car premiums
A few years ago, a number of new labels came onto the market. They offered competitive car premiums. Often also on excellent terms. That is how you attract new customers. The result: price-conscious consumers took out their car insurance here. But the masses simply remained seated. That is why the traditional airlines have had to do less at the rates. And the price difference between car insurers has increased.
In view of all reports about loss-making car insurers, the correct follow-up question is: how can insurers continue to suffice with these low rates?
It is often the internet insurers that offer the competitive premiums. Working online ensures lower costs. In addition, there is increasing risk differentiation. This means that insurers only award the competitive premiums to specific target groups. Namely those who carry little risk. In the meantime, the price for a car insurance may even differ per street!
Insure your car cheaper
Our most recent car insurance survey showed the average premium difference between the cheapest and most expensive insurers to be 2.7 times as large. But we also came across examples where someone could insure their car 4.8 times cheaper. For all-risk car insurance, that means a saving of several thousand euros per year.
So all you have to do to also save is to calculate and switch your car insurance online. The latter in particular is what a lot of Dutch people leave behind. Half of the drivers pay too much for his car insurance, because they have been with the same insurer for more than 5 years. And that is a shame, because they did not benefit from the sharp fall in prices that was initiated a few years ago.
Cheap car insurance
In the meantime, various badminton friends have at least switched to cheap car insurance. Because not only do they pay less there, the conditions and service also score more than satisfactory.