A majority of car insurance providers in Switzerland have indicated that they will increase premiums in 2025. The new report from the price comparison site Comparis predicted that some deals will cost drivers up to 15 percent more next year.

Drivers in Switzerland to face higher insurance premiums in 2025

According to the study, of the 13 major insurance providers asked by Comparis, only one (Touring Club Switzerland) said they would not be raising their premiums next year. Two reported that they were unsure whether prices would go up, four said that the prices would likely go up for some deals, while six clearly indicated that premium rises are imminent for motorists.

Only one company, Simpego, was overt with how much prices would rise, estimating that its deals would be around 5 percent more expensive in 2025. For others, Comparis predicted deals for drivers with intact no-claims bonuses would be 15 percent more expensive on average.

Reasons for the car insurance hike don't pass muster, Comparis argues

The reasons that insurance companies gave for the higher prices certainly raised some eyebrows. Most blamed inflation for the increases, followed by the greater frequency of insurance claims caused by weather like hail, floods and landslides.

Writing in the report, Comparis mobility expert Adi Kolecic said that the justifications were “questionable.” The latest data from the Swiss government suggests that annual inflation rose, albeit slightly, to 0,7 percent at the end of November 2024, levels significantly lower than those seen in 2022 and 2023.

“The question therefore arises as to whether insurers are using inflation as a pretext to raise prices," Kolecic mused. Once inflation is taken into account, premiums are "significantly lower than their level twenty years ago,” he added.

Indeed, the official Swiss Price Monitor found in September that while the cost of using Swiss public transport has doubled in some places since 1990, the cost of driving has only risen by 25 percent during the same period, and hasn’t risen much since 2013. 

How easy is it to switch car insurance in Switzerland?

"Customers should not be blinded by general reasons such as inflation and accept premium increases without saying anything...It is particularly useful to compare premiums in order to take advantage of more advantageous offers," the expert continued. 

"Insured persons can terminate their contract after a premium increase by insurers and switch to a more advantageous provider, even outside the usual termination periods. Provided that it is a general adjustment of premiums and not an increase due to a claim," he concluded.