Car Subscription Insurance Simply Explained

In the context of a car subscription, you often hear about a car flat rate or all-inclusive car subscription: one price, everything included. If you think that insurance is also included in the car subscription, you’re absolutely right. In our guide, we explain everything about car insurance in a car subscription with CARIFY.

What is a Car Subscription?

A car subscription offers the best of multiple mobility solutions. While with car sharing, you share a car with several drivers, with a car subscription, you can exclusively use the vehicle during the subscription period, even if you park it somewhere. This solution is usually cheaper than car rentals, where you are also significantly restricted in your choice of model. Compared to leasing, a car subscription offers flexible rental periods from 1 to 48 months and cost transparency. In a car subscription, everything is included in the monthly fee, except for fuel:

• Car tax

• Registration fee in your residential canton

• Swiss vignette

• Insurances

• Services, maintenance, and wear-and-tear repairs

• Tire changes (seasonal and as needed)

• 24/7 roadside assistance

• Configurable free mileage package as needed

Thus, it is fair to talk about a car flat rate that allows you automotive freedom.

Advantages of a Car Subscription

A car subscription is a great alternative to leasing or buying a new car because, with our CARIFY subscription model, you don't bear the residual value risk or depreciation. Above all, you can subscribe to a car for exactly as long as you need it. Learn more about the detailed benefits of our car subscriptions.

Flexibility and Cost Control

Car subscriptions are wonderfully flexible and quickly and easily provide you with a technically flawless and well-maintained vehicle. At CARIFY, we work with more than 400 partner garages and car dealerships across Switzerland, offering you a huge selection of new or young used vehicles in various colors and configurations.

• Need a spacious vehicle for a family vacation with plenty of room for luggage and sports equipment? No problem, CARIFY offers station wagons, SUVs, or mini-vans from numerous brands.

• Looking for a vehicle for a professional appearance? Choose your new representative model from our sedans.

• For city errands, we have many compact vehicles on offer.

• For transporting goods, our commercial vehicles, pick-up trucks, and delivery vans are ideal.

• Love the feeling of the wind in your hair? Our convertibles and motorcycles guarantee summer driving fun.

• Sporty drivers will enjoy our selection of coupes and sports cars.

The subscription period starts at 1 month, but we also offer many vehicles for long-term rental up to 48 months. With our subscriptions, you can choose from six free mileage packages:

• 500

• 750

• 1,000

• 1,750

• 2,500

• 3,000

With our car subscriptions, you won't face any unpleasant surprises like start-up fees or final payments. We don't charge extra for our service either. Only if you book our home delivery, we charge a fee of 180 CHF plus fuel and mileage. This means for you: You know exactly what the car will cost you per month. This is a clear advantage over leasing or buying a new car, as ongoing car costs are often underestimated. It's easy to miscalculate and agree to car payments you can't afford in the end.

Overview of Insurance Benefits

Insurance is included in CARIFY’s services. We have negotiated particularly favorable terms with our insurance partner Zurich Insurance Company Ltd, from which our subscribers benefit. You also don't have to worry about being downgraded in the event of a claim. The rates for your car insurance remain the same. Read on to learn more about the scope of coverage and conditions!

Various Insurance Options in the Car Subscription

With your CARIFY car subscription, you can choose from three insurance packages: Minimum, Basic, and Premium. Each package offers comprehensive coverage, but they differ in their level of coverage and the deductible you must pay in the event of a claim. You can find more detailed information in the insurance information sheet. In the following sections, we'll show you the differences.

Liability Insurance

The car liability insurance covers the costs of property and personal damage to other parties involved in an accident caused by you or where you share some of the fault. Here’s what you can expect:

Comprehensive and Collision Insurance

For damage to your subscription car, comprehensive and collision insurance covers the costs:

*If the driver causing the damage is someone other than the subscriber and under 25 years old, the deductible for comprehensive insurance is 3,000 CHF, and for liability insurance, it is 2,000 CHF.

Additional Insurance and Their Significance

Our insurance packages also include some additional insurance options that provide even more protection:

Comparison: Car Subscription vs. Car Purchase

New cars are almost always financed with a bank loan that you repay in monthly installments over a fixed period. Interest is added to the original purchase price. Once the loan is paid off, the car finally belongs to you, but it is worth only a fraction of what you paid for it. Besides the loan payments, you also have to bear all the ongoing costs of the vehicle.

This is what distinguishes a car purchase from a car subscription: With CARIFY, you always get new or nearly new used vehicles, but you don't have to pay interest or accept depreciation. After the subscription ends, you return the car or exchange it for another model. This allows you to adapt your vehicle to your current needs, while a car purchase ties you to a specific model.

Cost Comparison

The monthly loan payments for a car loan vary depending on several factors (purchase price, loan term, interest rate, fees, possible down payment), so it's difficult to compare them directly with the rates of a car subscription. On the one hand, many car dealers offer attractive discounts on new car purchases; on the other hand, you must consider the interest and depreciation. While you can choose which insurance to purchase, better rates typically require higher payments.

Overall, the costs of a new car are difficult to estimate. In contrast, the monthly rate for a car subscription remains constant, regardless of what services or repairs come your way, allowing you to budget more accurately.

Car Subscription:

• Monthly rate varies depending on the vehicle, selected terms, and subscription length.

• Extensive inclusions: Tax, registration, insurance, maintenance, repairs, tire changes, and roadside assistance.

• Additional costs: Fuel, parking fees, fines, possible deductible in insurance cases.

Car Purchase with Financing:

• Monthly loan payments as agreed, with interest increasing the total amount repaid.

• Additional costs: Insurance, tax, registration, fuel, parking fees, fines, possible deductible in insurance cases, maintenance, and repairs.

Contract Flexibility

Your sporty two-seater is your pride and joy, but suddenly you’re expecting a baby. Now you need a family car that can accommodate a stroller. A private car sale, however, is not so easy, and the price you can get will likely disappoint you. With a car subscription, you can react much more flexibly to changes in your life and always subscribe to the car that suits you best.

The Car Subscription with CARIFY – All-Inclusive Package

At CARIFY, we have adopted the motto "Cars for Everyone." From budget-friendly options to luxury cars, you’ll find exactly the vehicle you need with us. And since everything is included in the rate, even the service, you hardly have to worry about your car at all.

Conclusion

With CARIFY, you truly get an all-inclusive car subscription. You also have the option to tailor your subscription in terms of duration and contract conditions to suit your needs and budget. Nevertheless, with the included Minimum insurance package, you are covered for most damages and breakdown situations and don’t have to worry about anything. From service to seasonal tire changes, we organize everything for you – Cars Made Easy!

FAQs

How much does a car subscription cost?

The cost of a car subscription depends on various factors:

• Selected vehicle/model

• Registration date or mileage of the vehicle

• Subscription duration

• Selected insurance package

• Selected mileage package

• Selected subscription model (Fix, Flex, or Try & Buy)

At CARIFY, you can get the Citroën Ami for as little as 299 CHF per month with a 48-month term, 500 free kilometers per month, and the Minimum insurance package.

How much does monthly car insurance cost?

If you take out car liability insurance yourself, the costs vary depending on the insurance company, your vehicle, age, no-claims discount, place of residence, and the agreed coverage amount. You have to expect amounts between 50 and 150 CHF per month.

What is included in the car subscription?

The car subscription includes all ongoing costs related to the car – except for fuel/electricity. This includes taxes and insurance as well as services and repairs.

Who can sign up for a car subscription?

To sign up for a car subscription, you must meet a few requirements:

• Minimum age of 18 years (30 years for vehicles with over 350 horsepower)

• Swiss residency (except for company vehicles)

• A category B driver's license or a foreign driver's license recognized by Switzerland

• A positive credit check

• A credit card in your name