Ten ways to save on car insurance in Switzerland
Car insurance can be expensive, but not having it can be even more expensive. Here are some ways to save.
As we wrote about in our guide on the topic, car insurance in Switzerland can also be very complicated.
For anyone who wants to know the basics of car insurance in Switzerland, check out the following guide on the topic.
READ MORE: Everything you need to know about car insurance in Switzerland
This guide primarily relates to ways to save money on car insurance - here are some of the best.
Have we missed something? Get in touch at [email protected].
1. Know what you are getting - and do your research
By far the most important thing to do is your research. Insurers love fine print and sometimes things aren’t what they seem.
One example is so-called ‘partial Casco with collision’ insurance.
While this may seem like a good deal where you get the added protection of collision insurance but are on a ‘partial’ plan, in reality this is comprehensive insurance under a different name.
Most insurers will have a copy of the information in English - or at least be able to answer your questions in English should you have some.
Besides reading the policy itself, be aware of all your other insurances as these often overlap (more on that below).
Driving in Switzerland: How to convert your drivers licence for a Swiss one
2. Drop your licence plates at the cantonal office
One of the oldest tricks in the insurance book is one of the most effective.
Whether you are headed away, whether the car isn’t being used or if it is set for longer-term repairs or upkeep, dropping your licence plates in at the cantonal road traffic office (via another car of course) will suspend the car insurance.
You will see some of your premiums returned, although exactly how this is determined depends on the insurer.
You can also return the plates via the post, with the authority informing the insurer (although you’d be best to contact them as well).
EXPLAINED: How does roadside assistance work in Switzerland?
3. Reconsider your deductible
A bigger deductible will mean a lower premium. By reconsidering your personal circumstances, you may be able to save in the long run depending on where you set your deductible.
If you need a car to get around primarily, then a bigger deductible may be more appropriate.
Your premiums will be lower and any major damage will be covered, while you’ll need to cover the cost of smaller damage yourself, for instance, less urgent things like small scratches and windscreen chips that won’t spread
If you have a luxury car however, you’ll want to keep it spic and span, meaning you might want to pay a little more regularly so that a greater amount of damage is covered.
Reader question: When must I change to winter tyres in Switzerland?
4. Reconsider the value of your vehicle (and whether you need comprehensive insurance)
This could probably fit under the heading above, but it’s worth considering whether you want full or partial insurance.
Comprehensive insurance is usually most appropriate for new cars, but makes less sense the older the car gets.
For older cars however, partial insurance is usually sufficient.
Insurers only pay out the current value of a car, rather than the amount you paid - or the amount you feel it’s worth.
Swiss comparison site Comparis recommends comprehensive insurance for the first four years of a new car’s life - and maybe an additional year or two for luxury cars.
After that, partial insurance “makes more sense”.
READ MORE: Where in Switzerland can you find the cheapest fuel?
5. Don’t crash
It might seem simple advice both in terms of saving money on insurance and just generally in life, but trying to be a little more careful will make financial sense due to the way Swiss car insurance is structured.
Most Swiss insurances will have a bonus scheme.
For people who don’t have any accidents - or more correctly, don’t make any claims - they will usually be entitled to a discount in their regular premiums.
Over time, this discount can grow as you go for a longer period with no or few claims.
If you claim regularly however, you will not receive a discount in your premiums - and in some cases your premiums will go up.
If for some reason you think you will claim regularly - for instance you live in an area with hailstorms and you don’t have a garage, or if you simply just aren’t a very good driver - then you can elect to get an insurance policy with ‘bonus protection’, which will ensure your premium doesn’t rise with more claims (or will not rise by as much).
6. Check other insurances
Many people are overinsured in Switzerland without even knowing it.
This means that two or more insurance premiums cover the same items.
In the content of car insurance, you may be paying for items carried in the car - but if you have home and contents insurance, this will already be covered in most instances.
Another example is occupant accident insurance, which is unnecessary as Switzerland’s compulsory accident insurance covers this already.
Unfortunately for people who are overinsured, while they pay more than they should, they can’t claim back double.
Car insurance is compulsory in Switzerland. Photo by Michael Jin on Unsplash
7. Don’t be from the Balkans or Turkey
OK so this isn’t something you can exactly help, but studies have shown foreigners pay more for car insurance in Switzerland - particularly from the Balkans and Turkey.
People from Kosovo, Albania, Serbia and Turkey all paid roughly 60 percent more than the Swiss. People from Portugal (24%), Italy (13%) and Spain (12%) also paid more.
Insurers have defended this saying it is an automatic classification based on the amount of crashes people, particularly young men, from those countries have in comparison to Switzerland.
But if you are from anywhere on that list, it makes financial (and ethical) sense to look for an insurer which doesn’t make such blatant differentiations.
Swiss car insurance: Why do foreigners pay higher premiums?
8. Avoid long-term contracts
With new, more cost effective options coming up regularly, anyone bound in a long-term deal risks missing out.
Swiss comparison site Comparis recommends signing only short-term, ideally one-year, deals, or those with an annual right of termination.
By doing so, you can change to a better deal when appropriate.
9. Let the insurer choose the garage
Swiss insurance contracts will usually let you decide which garage should be chosen for repairs and maintenance.
While that might sound good in that you can choose one which is convenient and trustworthy, it will often mean a hike in premiums and a more complicated process for claims.
EXPLAINED: In which parts of Switzerland are you most likely to lose your driving licence –and why?
10. Crash recorders
Crash recorders are installed in cars and collect a variety of important data including acceleration, speed, date and time leading up to an accident.
The data can then be used to reconstruct the events and get a better idea of how the accident occurred, while they are also valuable in the instance of vehicle theft.
Swiss insurer Axa notes that people who install crash recorders can save up to 15 percent in their premiums.
Please remember this is a guide only and does not constitute legal or financial advice. For tailored advice on your situation, get in touch with a registered car insurer (or a few in order to compare).
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See Also
As we wrote about in our guide on the topic, car insurance in Switzerland can also be very complicated.
For anyone who wants to know the basics of car insurance in Switzerland, check out the following guide on the topic.
READ MORE: Everything you need to know about car insurance in Switzerland
This guide primarily relates to ways to save money on car insurance - here are some of the best.
Have we missed something? Get in touch at [email protected].
1. Know what you are getting - and do your research
By far the most important thing to do is your research. Insurers love fine print and sometimes things aren’t what they seem.
One example is so-called ‘partial Casco with collision’ insurance.
While this may seem like a good deal where you get the added protection of collision insurance but are on a ‘partial’ plan, in reality this is comprehensive insurance under a different name.
Most insurers will have a copy of the information in English - or at least be able to answer your questions in English should you have some.
Besides reading the policy itself, be aware of all your other insurances as these often overlap (more on that below).
Driving in Switzerland: How to convert your drivers licence for a Swiss one
2. Drop your licence plates at the cantonal office
One of the oldest tricks in the insurance book is one of the most effective.
Whether you are headed away, whether the car isn’t being used or if it is set for longer-term repairs or upkeep, dropping your licence plates in at the cantonal road traffic office (via another car of course) will suspend the car insurance.
You will see some of your premiums returned, although exactly how this is determined depends on the insurer.
You can also return the plates via the post, with the authority informing the insurer (although you’d be best to contact them as well).
EXPLAINED: How does roadside assistance work in Switzerland?
3. Reconsider your deductible
A bigger deductible will mean a lower premium. By reconsidering your personal circumstances, you may be able to save in the long run depending on where you set your deductible.
If you need a car to get around primarily, then a bigger deductible may be more appropriate.
Your premiums will be lower and any major damage will be covered, while you’ll need to cover the cost of smaller damage yourself, for instance, less urgent things like small scratches and windscreen chips that won’t spread
If you have a luxury car however, you’ll want to keep it spic and span, meaning you might want to pay a little more regularly so that a greater amount of damage is covered.
Reader question: When must I change to winter tyres in Switzerland?
4. Reconsider the value of your vehicle (and whether you need comprehensive insurance)
This could probably fit under the heading above, but it’s worth considering whether you want full or partial insurance.
Comprehensive insurance is usually most appropriate for new cars, but makes less sense the older the car gets.
For older cars however, partial insurance is usually sufficient.
Insurers only pay out the current value of a car, rather than the amount you paid - or the amount you feel it’s worth.
Swiss comparison site Comparis recommends comprehensive insurance for the first four years of a new car’s life - and maybe an additional year or two for luxury cars.
After that, partial insurance “makes more sense”.
READ MORE: Where in Switzerland can you find the cheapest fuel?
5. Don’t crash
It might seem simple advice both in terms of saving money on insurance and just generally in life, but trying to be a little more careful will make financial sense due to the way Swiss car insurance is structured.
Most Swiss insurances will have a bonus scheme.
For people who don’t have any accidents - or more correctly, don’t make any claims - they will usually be entitled to a discount in their regular premiums.
Over time, this discount can grow as you go for a longer period with no or few claims.
If you claim regularly however, you will not receive a discount in your premiums - and in some cases your premiums will go up.
If for some reason you think you will claim regularly - for instance you live in an area with hailstorms and you don’t have a garage, or if you simply just aren’t a very good driver - then you can elect to get an insurance policy with ‘bonus protection’, which will ensure your premium doesn’t rise with more claims (or will not rise by as much).
6. Check other insurances
Many people are overinsured in Switzerland without even knowing it.
This means that two or more insurance premiums cover the same items.
In the content of car insurance, you may be paying for items carried in the car - but if you have home and contents insurance, this will already be covered in most instances.
Another example is occupant accident insurance, which is unnecessary as Switzerland’s compulsory accident insurance covers this already.
Unfortunately for people who are overinsured, while they pay more than they should, they can’t claim back double.
7. Don’t be from the Balkans or Turkey
OK so this isn’t something you can exactly help, but studies have shown foreigners pay more for car insurance in Switzerland - particularly from the Balkans and Turkey.
People from Kosovo, Albania, Serbia and Turkey all paid roughly 60 percent more than the Swiss. People from Portugal (24%), Italy (13%) and Spain (12%) also paid more.
Insurers have defended this saying it is an automatic classification based on the amount of crashes people, particularly young men, from those countries have in comparison to Switzerland.
But if you are from anywhere on that list, it makes financial (and ethical) sense to look for an insurer which doesn’t make such blatant differentiations.
Swiss car insurance: Why do foreigners pay higher premiums?
8. Avoid long-term contracts
With new, more cost effective options coming up regularly, anyone bound in a long-term deal risks missing out.
Swiss comparison site Comparis recommends signing only short-term, ideally one-year, deals, or those with an annual right of termination.
By doing so, you can change to a better deal when appropriate.
9. Let the insurer choose the garage
Swiss insurance contracts will usually let you decide which garage should be chosen for repairs and maintenance.
While that might sound good in that you can choose one which is convenient and trustworthy, it will often mean a hike in premiums and a more complicated process for claims.
EXPLAINED: In which parts of Switzerland are you most likely to lose your driving licence –and why?
10. Crash recorders
Crash recorders are installed in cars and collect a variety of important data including acceleration, speed, date and time leading up to an accident.
The data can then be used to reconstruct the events and get a better idea of how the accident occurred, while they are also valuable in the instance of vehicle theft.
Swiss insurer Axa notes that people who install crash recorders can save up to 15 percent in their premiums.
Please remember this is a guide only and does not constitute legal or financial advice. For tailored advice on your situation, get in touch with a registered car insurer (or a few in order to compare).
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