Answer:
It’s frustrating. No accidents, no new cars, no move. Yet the renewal letter brings a higher price.
This is more common than you think. Here’s why it happens and what you can do about it.
Reason 1: The bonus-malus system isn’t automatic
Bonus-malus reflects your driving record. Each claim-free year should lower your category and payment. Yet many insurers don’t apply discounts automatically and wait for you to complain.
Reason 2: Overall claim rates have gone up
Insurers pool risk. If your area had more accidents, thefts, or hail than last year, your premium may rise even if you made no claims.
Reason 3: Inflation affects repair costs
Repairs cost more now. Sensors, cameras, and LED headlights all add up. These increases are passed to you.
Reason 4: You had a birthday (yes, it matters)
Young drivers (18-25) pay more. Seniors (over 65) start paying more, too. If you enter a statistically worse group, your premium may rise.
Reason 5: Your company is adjusting prices
Insurers review rates yearly. Sometimes they raise prices to recover losses or increase profits.
What can you do?
1. Don’t accept automatic renewal
You can refuse renewal. Notify them before the renewal date, usually with a month’s notice.
2. Ask your own company for a quote as a “new customer.”
Call and say: “I’m thinking of switching insurance. What price would you offer as a new customer?” It’s often cheaper than your renewal.
3. Compare with other insurers
Spend 20 minutes getting quotes from 3-4 companies. You’ll likely find similar coverage for less.
4. Negotiate
Call your insurer and say: “Another company offered the same coverage for X euros per year. Can you match it?” This works more often than you think.
5. Switch insurance companies
It’s easy. The new insurer handles everything. You don’t need to contact your old company.
Our recommendation: Review your insurance price every year before renewing. The company cheapest last year could be the most expensive this year. Loyalty is not rewarded in insurance. Switching every 1-2 years is normal and recommended.
