Germany Car Insurance Market Report 2024
78% of policyholders took some kind of action to compare policies before taking out their current car insurance policy.
78% of policyholders took some kind of action to compare policies before taking out their current car insurance policy.
78% of policyholders took some kind of action to compare policies before taking out their current car insurance policy. Many carry out research to ensure they receive fair terms, creating an ideal opportunity to engage with consumers during the renewal process. Despite this, 66% remained with their existing insurer, indicating high levels of customer inertia in the car insurance sector.
65% of Germans say the rising cost of living has made owning a car too expensive, peaking at 77% among those struggling with their finances. Car insurance costs have risen considerably in recent years, with further increases expected. Financially healthy consumers may still manage these expenses, but those struggling are likely to seek ways to reduce costs, underscoring the opportunity to offer flexibility and ways to save.
Gen Zs and Millennials are most likely to switch insurers at renewal. While a trustworthy brand image remains important, insurers should address younger consumers’ need for extra assurance by encouraging friends and family to make recommendations and leveraging customer reviews and trusted social media influencers. Additionally, highlighting the cost-saving benefits of telematics tariffs and the control they provide over premiums can appeal to consumers, particularly younger drivers who face higher premiums.
As insurance costs rise, building trust and providing reassurance to policyholders are key. Meanwhile, telematics and electric car insurance offer future growth opportunities.
Venkatesh Modi, Research Analyst, Germany