Motor insurance: which policy is right for me?

There are various motor insurance options and models. We explain the differences between liability, part and fully comprehensive insurance and give you an overview of the associated costs. You will also find out when it can be worth changing your car insurance and how to do so.

Why motor insurance is important in Switzerland

In Switzerland, you are required by law to take out motor liability insurance for your vehicle if you intend to drive it on public roads. Without valid liability insurance, your vehicle cannot be registered. To register your vehicle, you need proof of insurance, which your insurance company will send electronically to the vehicle licensing office.

Motor insurance also offers you important protection against financial risks. In the event of a claim, the insurance covers the costs that you cause to third parties with your vehicle – be it through property damage, personal injury or injury to animals.

While liability insurance covers losses incurred by third parties, part and fully comprehensive insurance offers additional protection for your own vehicle. These types of insurance cover a large number of risks, including fire, damage caused by natural hazards, theft and, to a limited extent, malicious acts. The General Policy Conditions provide full clarity on the various insured events. If the risk of collision, e.g. accidents for which you yourself are responsible, is to be covered, you will need fully comprehensive insurance.

Who needs motor insurance?

Motor insurance policies are as diverse as motorists themselves, and offer special cover tailored to the needs and situations of insured persons:

• New and young drivers: Tailor-made solutions offer adapted cover that takes into account the higher risk without having an excessive impact on premiums.
• Electric vehicles: Special insurance packages for electric cars cover specific requirements such as battery protection and take into account the special characteristics of electric vehicles.
• Companies: Businesses should treat their company vehicles separately and consider a fleet contract solution. The nature of this solution will depend on the vehicle fleet. It can be adapted individually to the company’s needs and will significantly reduce the administrative workload involved.
• Rental cars: Rental cars are generally well insured – usually with third-party liability, fully comprehensive cover and a breakdown service. If you want to reduce the excess or insure additional costs, you can take out extra insurance. This can often be done via a car assistance component of a travel insurance policy.
• Have you ever lent your car to someone else? If you loan your car to somebody privately as a favour, this is a different case. Make sure that the person borrowing your car has an appropriate add-on in their personal liability policy. This will ensure that you are fully protected in the event of a claim. A requirement here, however, is that the car is not regularly used by the same person. This cover also does not apply if the person lives in the same household as you.
  

Different types of motor insurance

When selecting motor insurance in Switzerland, vehicle owners can choose between part comprehensive or fully comprehensive insurance. This choice is influenced by factors such as the value and age of the vehicle and the individual’s financial situation.

Fully comprehensive insurance is generally recommended for owners of new cars in order to ensure maximum protection. It is important to know that fully comprehensive insurance is mandatory for leased vehicles. Owners of older models, whose value would have to be covered out of pocket in the event of a write-off or significant damage, will often find that part comprehensive insurance is sufficient.

Motor liability insurance:

Motor liability insurance is required by law for all vehicle owners in Switzerland and forms the basis of every motor insurance policy. It covers personal injury, property damage and financial losses that third parties may incur as a result of your use of the vehicle. This means that in the event of an accident caused by you, damage to other vehicles, personal injury and damage to third-party property will be covered by the insurance. Damage to your own vehicle, however, is not covered by liability insurance.

Part comprehensive insurance:

Part comprehensive insurance offers protection against damage that was not caused by the insured person while driving. This includes theft, damage due to natural hazards such as hail or flooding, and damage caused by fire. It is important to know that damage to the vehicle for which you yourself are at fault is not covered by part comprehensive cover. Collisions with animals are an exception to this rule.

Fully comprehensive insurance:

Fully comprehensive insurance offers all-round protection, including accidental damage caused by you to your own vehicle. Fully comprehensive cover is particularly suitable for drivers of high-value or new vehicles.

The choice between part or fully comprehensive cover should be carefully considered, taking into account both your individual needs and any specific risks. Thinking about this question carefully will help you to find the optimal insurance cover.

Premiums and excess

The cost of motor insurance depends on a number of individual factors. These vary widely and are determined by a combination of vehicle characteristics, driving behaviour and personal decisions of the vehicle owner:

• Extent of coverage: The amount of the premium depends to a large extent on whether you opt for liability, part or fully comprehensive insurance.
• Vehicle model: The type of vehicle, including the make, model and year of manufacture, also influences the insurance premiums. High-value or high-performance vehicles can lead to higher costs.
• Annual mileage: Your annual mileage (how many kilometres you expect to drive each year) is another important factor. More kilometres driven can mean a higher risk.
• Storage location: Where the vehicle is usually parked, i.e. in a garage or outdoors, can affect the premium.
• Number of accident-free years: Your driving history, in particular the number of accident-free years you have accumulated, affects bonus-relevant premiums.
• Individual premium level: Your personal premium level, which is determined by your age and any claims you caused as a vehicle owner or driver, is another important factor.
  
• Excess: The excess is the amount that the insured person or the person who caused the loss must bear themselves in the event of a claim. The choice of excess has a direct influence on the amount of the premium. A higher excess may lower the annual premium because the insured person is willing to assume a larger proportion of the risk themselves. This may be attractive to drivers with a lower risk of causing loss or damage, or being involved in an accident. However, it is important to choose an excess that you can definitely afford to avoid being faced with unexpectedly high costs in the event of a claim. The amount of spare cash you have available is key here.

These factors enable insurance companies to assess risks individually and adjust premiums accordingly. By adjusting these variables, vehicle owners can influence how much their insurance costs.

Cancelling and changing your motor insurance

Think carefully before cancelling your motor insurance, and make sure you follow the correct procedure. In order to be effective, the cancellation must be notified in writing, preferably by registered letter to the insurer. This ensures that the notice of cancellation is clearly documented. Alternatively, you can also submit a cancellation notice by e-mail – check with your insurer about the specific requirements here.

There are several situations in which you can cancel your car insurance:

• On expiry of the contract: Pay attention to the expiry date of your insurance contract to determine the best time to cancel.
• In the event of a premium increase: If your insurer announces an increase in premiums, you usually have a special right of termination.
• After a claim: Some policyholders take the settlement of a claim as an opportunity to review and, if necessary, change their insurance policy. It is important to make certain that your new motor insurance policy offers the cover you want before cancelling the current one.
• When changing vehicles: If you switch vehicles, you have the option of changing your insurance and cancelling your existing policy.
• Contract term: The law stipulates that insurance contracts can be cancelled after a minimum term of three years. This also applies to contracts of a longer duration. Provided that the insurer offers it, it is possible to agree an annual right of termination. Take the time to consider which solution is best for you.
  

Tip: avoid cancelling your policy in the first year after taking it out. In the event of a claim, you will have to pay the whole annual premium. Pay attention to the statutory conditions with regard to premium refunds on cancellation.

Motor insurance for abroad

If you are travelling abroad with a vehicle insured in Switzerland, you will usually need an international insurance card. Until 2020, this was called the “green card”. Now white and known as the “international insurance card”, this card proves that you have taken out liability insurance for your car. In general, it is advisable to carry the international insurance card in your car at all times. You should also make sure that it is still valid.

Please note that some countries do not accept the international insurance card. The countries in which it is valid are listed on the card. If the country you wish to enter is not listed, you must take out temporary liability insurance on entry at the border.

If you are involved in an accident, your Swiss insurance will cover liability claims in accordance with the policy conditions. However, it is generally advisable to check with your insurer before travelling whether and to what extent the insurance is valid abroad, as well as whether you should take out additional comprehensive or part comprehensive cover.

Frequently asked questions about motor insurance

Image sources: iStock, mixetto; Unsplash