Weekly Motor Insurance News

UK

UK motor and home insurance premiums decline sharply
Motor and home insurance premiums in the UK continued to decline in May 2025, with price drops accelerating compared to April, according to Pearson Ham Group. Motor premiums fell by 1.7% in May and are down 17% year-on-year, with younger drivers seeing the biggest savings. Despite falling prices, insurers face mounting claims costs, which rose to a record £11.7 billion in 2024. Home insurance premiums also saw their sharpest monthly drop of the year at 1.9%, now down 6% annually. Experts attribute the trend to rising competition, evolving risk assessments, and changing repair and rebuilding costs. Insurers are adjusting pricing strategies in response to these dynamic market conditions.

Austria

Car insurance: One in two people has never changed
According to a survey by Austrian comparison platform Durchblicker, half of car owners have never switched their car insurance. As a result, many pay more than necessary and fail to adjust their policies to changes in their life circumstances. For example, moving from a city to the countryside may require coverage for wildlife damage, while urban drivers might benefit from protection against parking damage. Vehicle age also matters—Durchblicker recommends switching from fully comprehensive to partial coverage after five years, and possibly dropping comprehensive coverage altogether after seven years.

Germany

The flood of affordable electric cars is coming soon - what you should wait for
Many people are considering switching to electric vehicles (EVs), and low resale values along with upcoming tax incentives are expected to flood the market with used EVs in the coming years. Starting July, Germany’s new government will offer significant tax breaks for company EVs, likely keeping resale values low. As a result, more leased EVs are expected to return to the market annually, pushing down used prices. Experts note that companies prefer leasing over buying due to uncertain residual values. This could benefit private buyers looking for affordable second-hand EVs now or in the near future.

Insurers sound the alarm: Car repairs will become more expensive again in 2025
Repair costs for vehicles in Germany are expected to keep rising in 2025, according to the German Insurance Association (GDV). The main drivers are the increasing prices of spare parts and workshop services, which have outpaced general inflation for years. Visible body parts like fenders and headlights are particularly expensive due to design protections that limit market competition. Although a legal reform aimed at opening the spare parts market was passed in 2020, full competition isn’t expected until 2045. Since 2014, spare part prices have risen by 75%, compared to a 28% increase in overall inflation. Despite recent losses, insurers hope for a more balanced result in 2025, though challenges remain.