The cost of car insurance in Switzerland is expected to rise sharply in 2025, various providers have admitted. Insurers blame the price hikes on higher costs related to maintenance, wages and even the weather.

Swiss car insurers to raise premiums in 2025

Writing to RTS, six of the largest car insurers confirmed that they would be increasing their premiums in 2025. Though the price rises will vary by provider, the national broadcaster discovered hikes of up to 20 percent.

In justifying the increase to drivers, most companies cited the rising maintenance costs involved in repairing modern cars. "A few years ago, changing a bumper was cheap. Today, parking assistance, electronics and others increase the price of repairs," La Bâloise regional director Lionel Bonjour told RTS.

Helvetia added in a statement that the cost of replacement parts has increased by 16 percent on average since 2022. Zurich Insurance and Smile Assurance blamed the premium rises on spare parts, material costs, and the rising rates charged by garages.

Extreme weather in Switzerland blamed for price rises

Interestingly, Postfinance added that, alongside the aforementioned reasons, higher insurance costs are also caused by the weather in Switzerland. They noted that the more frequent occurrence of severe weather - made more likely by climate change - had increased the size of payouts each year.

According to data from AXA, weather caused 144 million francs worth of damage to homes, infrastructure and cars in 2022. During the peak year for damage, 2021, storms and other severe weather events caused 299 million francs in damage. 

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