Car Insurance in Switzerland: Key Points to Consider

Choosing the right car insurance is key to getting the most value for your money. Here, independent Swiss online comparison service moneyland.ch lists the most important questions to ask when insuring your car in Switzerland.

1. Which third-party liability car insurance is the best?

Third-party liability car insurance is mandatory in Switzerland. You cannot drive your car on public roads unless you have it. Swiss laws set out the minimum required coverage, so there are very few differences in coverage. But insurance premiums and deductible models vary between offers, so comparing is important.

If you need comprehensive and possibly collision car insurance as well, then you should compare the total cost of all the insurances you need. Other points to consider are:

• The bonus-malus models used and the cost of adding claims forgiveness.
• Whether roadside assistance is included.
• How much it costs to add coverage for gross negligence.

2. Do you need comprehensive and/or collision car insurance?

Comprehensive car insurance is relatively affordable, and can be worth having even if your car is relatively old because it covers repairs caused by hail and other natural hazards. Just note that if your car is 8 years old or older, you will receive little or no compensation if your car is totaled (by a fire or severe hailstorm, for example). See point 4 for more information.

Collision car insurance is relatively expensive. As a general rule, it is only worth having this insurance until your car is 8 years old (cars which have sentimental or investment value are possible exceptions to this rule). For cars older than that, the cost of insurance is high in relation to the cost of replacing the car with a different car of the same age. From the eighth year, you also receive very little compensation if your car is totaled.

3. What hazards are covered?

There are notable differences in the coverage provided by different collision and comprehensive insurance policies. Some insurers cover the costs of towing and salvage, storage and customs duties, while others do not. Some cover damage to personal property carried inside an insured vehicle or let you add this coverage, while others do not. Coverage for vandalism, damage by wild animals and natural hazards varies between comprehensive insurance policies. Some policies cover damage caused by drawing or spraying (graffiti) or cutting of convertible roofs, others do not. A handful of policies cover damage by earthquakes or volcanic eruptions, but most do not. Some insurers let you add parked car coverage to comprehensive car insurance, but most only let you add it with expensive collision insurance.

Take the time to consider which risks your car is exposed to and pick insurance offers which cover those risks.

4. How much can you claim if your car is totaled?

The compensation which you receive if your car is totaled varies enormously between insurers and offers. Which insurance provider and optional riders you use can mean the difference between getting back what you paid for your car and getting next to nothing.

5. How do claims affect your premiums?

Most Swiss car insurance providers use bonus-malus systems for their liability and collision insurance policies. A handful use bonus-malus systems for comprehensive car insurance and parked car insurance as well.

6. Where do you plan to drive your car?

Geographical coverage varies between insurance policies. Most Swiss car insurance policies cover Europe, but exclude certain countries (Kosovo, Ukraine and Russia, for example). Some cover middle-eastern and North African countries. Some policies cover countries which others do not. Make sure to review the geographical coverage of a policy to ensure that countries which you plan to visit are covered before you sign up.

Another point to consider is that some countries have very low compulsory third-party liability insurance requirements. If you frequently drive to covered countries which are outside of EFTA or the EU, using a car insurance provider which offers an underinsured motorist insurance rider for third-party liability car insurance is worth considering.

7. Conclusion

Taking the time to find the insurance which is the best fit for your needs is preferable to buying insurance based on premiums only. Being properly insured will minimize your chances of having to cover costs out of your own pocket.

More on this topic:
Simple ways to save on car insurance in Switzerland
Swiss motorist legal insurance guide
Swiss underinsurance motorist insurance guide
Saving tips for car owners in Switzerland
Compare Swiss car plans