Concepts and criteria

September 2011 – After 1999, there will be a new discount scale in the no-claims (SF) classes of car insurance next year. This can often make prices more favorable; nevertheless, comparison between insurance companies becomes more difficult.

Concepts and criteria

Dumping prices in the car insurance are no longer tenable in the future, it was said only weeks ago. The industry's apparent unanimity is now giving way to motor insurers "through the back door" on – with a new discount scale in the no-claims class. To the 1. January 2012, the Huk-Coburg Insurance Group (www.Huk.De) introduce a new discount scale in car insurance for claim-free years. The key point of the new scale is that car owners after 35 years in the no-claims bonus (SF) class 35 will lastly only be charged a premium rate of 20 percent. Previously, the scale ranged up to SF class 25 with a premium rate of 30 percent. "The change became necessary because new findings suggest a further differentiation in the highest discount class and the old scale, introduced in 1999, does not sufficiently take into account newly added tariff features since then", says Huk-Coburg press spokesman Alois Schnitzer (photo right).

Concepts and criteria

Some suppliers are already using a new crane system, while others will continue to use the old system, at least for the time being, based on past experience. The consequence: Premium comparisons for media. Test institutions are made more difficult. A comparison of the 100 percent contributions no longer allows a statement about the rate level of the respective providers. The made Klaus-Jürgen Heitmann (photo), member of the Huk-Coburg Board of Management responsible for car insurance, and Dr. Jörg Rheinländer, head of the company's Actuarial Composite department, during a background discussion with journalists in Cologne clearly.

Once again, it was made clear that the absence of damage – along with the type class – has the greatest influence on the premium amount. A motorist who was placed in class M (malus) in their motor liability insurance after several accidents in one year previously paid more than eight times as much as a motorist with a premium rate of 245 percent. Similarly, with premium rates of 230 (class 0) or 140 percent (SF class 1/2), novice drivers can make the nearly eight- or. Have to pay five times the lowest premium.

Concepts and criteria

With the new scale, the differences between the highest and lowest premium rates will become smaller: in the future, the range will extend from 135 percent in class M to 20 percent in SF class 35, which is reached after 35 claim-free years. Due to the lower premium rates, especially for young novice drivers – 95 percent in class 0 and 75 percent in SF class 1/2 – the new scale takes into account that the higher accident risk of beginners is now also captured by the characteristic driver age.

On the other hand, the extension of the discount scale to 35 years takes into account the fact that almost a quarter of all vehicles with third-party liability insurance are now classified in the previous highest SF class 25. Risk differences were identified within this group, which are now reflected in further declining discount rates as the number of claims increases. Here's how the discount rate drops from 24 percent in the new SF Class 25 to 20 percent in SF Class 35.

Similarly as for the motor vehicle liability insurance applies also to the comprehensive insurance, communicates the Huk-Cobug. The new discount scale complicates for media. Test institutions premium comparisons of the various providers. Comparisons based on the 100 percent basic contributions are no longer meaningful. Because the basic contribution in the new scale is newly defined. In absolute terms, it must be about one-third higher in the new scale than the basic premium in the old scale, so that the overall premium income remains unchanged. "Much of the market has an interest in non-transparency", was already quoted Huk Coburg executive committee Klaus Jürgen Heitmann over the Kfz insurance market in the media.

In addition, there are considerable differences between the new and old scales in the individual SF classes. Thus in the SF class 1 the contribution lies in the new graduation with same contribution level around 19 per cent under that in the old graduation. For drivers in SF class 10, on the other hand, the premium in the new scale is about 8 percent higher than in the old scale. By contrast, drivers in SF class 35 save up to ten percent compared to the old scale.

The example shows how confusing the new scale is: Anyone who previously paid 144 euros at 30 percent for third-party liability will in future pay 129 euros at 20 percent, rather than two-thirds of the old price, due to the shifted basis.

Beyond that it depends however for comparisons also on the contribution level altogether of the respective offerers. Who wants to win realizations independently of the applied discount scale, must compare the contributions in SF classes, in which the contributions in both scales lie close together. This is for example the case in SF class 30. Insurers who do well in these classes have a favorable premium level regardless of which scale they apply, it is said.

"For most motorists, it is primarily this average premium level that determines whether an insurer is favorable for them", say the Huk-Coburg experts. The difference between the offerers is meanwhile very large: Accordingly the surcharge amounts to in relation to the most favorable offerers with the most expensive ones approximately 160 per cent. In particular for drivers in the entry classes up to SF 2, however, a less favorable provider with a new scale could be the better choice than a favorable provider with an old scale. Due to the large price differences between the individual insurers, the following still applies to motorists in general: A comparison is always worthwhile. (eb-db / www.Bocquel-news.De)

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