Car Insurance in Switzerland: A Comparison

Accidents happen, and there's little you can do about it (except driving a technically sound vehicle with foresight and adapting to conditions). However, when it comes to car insurance in Switzerland, you do have some control. In addition to mandatory insurance, supplemental policies can protect you from high repair costs. At CARIFY, we’ll tell you which car insurance in Switzerland makes sense and what to consider when choosing an insurance package.

Car Insurance in Switzerland

Car insurance is one of the recurring costs associated with owning a vehicle. One of them is mandatory, as it is required by law, while others are optional. Here's what you need to know about both types.

Mandatory Insurance

No vehicle in Switzerland is allowed on the road without liability insurance. It is essential for the registration of the car through the Road Traffic Office. To get the car registered, you need proof of insurance, which the insurance company sends to the authorities electronically.

The insurance is tied to the vehicle, ensuring that the liability insurance covers an accident even if you're not the driver. So, what does the mandatory car insurance cover?

• Personal injury: If a person is injured in an accident where you're at least partially at fault, costs for medical treatment and rehabilitation can add up quickly. Liability insurance covers these expenses.

• Animal injuries: Animals in Switzerland have their own rights as living beings with feelings. If an animal is injured in an accident without the pet owner being at fault, treatment costs may arise.

• Property damage: Significant damage can occur in an accident, not just to other vehicles but also to buildings, fences, trees, traffic signs, etc.

Optional Supplemental Insurance

Optional car insurance includes comprehensive coverage, which we’ll explain shortly. Additionally, you can protect yourself from other types of damage with the following insurance options:

• Breakdown coverage: It’s not always an accident—if your car breaks down due to a flat tire or engine damage, roadside assistance will cover towing services and may even provide a replacement vehicle.

• Passenger accident insurance: Liability insurance covers personal injury to others involved in the accident but not yourself or your passengers. This insurance covers medical costs for all passengers in your car, even if you are partially at fault.

• Legal protection insurance: In many accidents, determining fault is unclear. Who had the green light? Who was speeding? This insurance covers the costs of legal disputes following an accident.

• Depreciation insurance (useful for leaseholders): In residual value leasing, there’s often an expensive discrepancy for the lessee between the agreed residual value and the actual value when returning the car, especially due to accident damage. This insurance covers that gap.

Types of Comprehensive Insurance

There are two types of comprehensive insurance: full and partial. They differ in the damages they cover and the amount insured. Both types can include deductibles. In the event of a claim, you must cover costs up to your deductible (e.g., CHF 500) before the insurance takes over the rest. The advantage of a deductible is lower monthly premiums, but if multiple claims occur in a short period, you'll have to pay quite a bit out of pocket.

Though comprehensive insurance is optional, most car subscription or lease providers require you to have it.

Partial Comprehensive Insurance

Partial comprehensive insurance covers damage caused by external factors, such as:

• Theft

• Fire

• Natural disasters

• Glass damage

• Damage caused by rodents

• Collisions with wild animals

• Vandalism, though not damage from intentional scratching of paint

Collision damage to your own vehicle isn’t covered, making partial coverage cheaper than full comprehensive insurance.

Full Comprehensive Insurance

Full comprehensive insurance covers all the events listed under partial insurance and also includes coverage for vandalism-related scratches and collision damage. This makes full coverage ideal for newer or high-value cars where repairs can be costly.

Additional Insurance Coverage

Beyond the insurance options mentioned, you can further protect yourself with the following:

Gross negligence protection

If an accident occurs due to gross negligence (e.g., ignoring fundamental traffic rules), your insurance may refuse to pay or ask you to cover part of the costs. You can protect yourself from this for a small additional premium.

Parking damage

If your parked car is damaged by another vehicle and the other driver leaves the scene, full comprehensive insurance will cover the damage, but partial will not. If you park on public streets often, it’s worth adding parking damage insurance.

Bonus protection

With many liability and comprehensive insurance policies, no claims in a year lead to lower premiums the next year. If you file a claim, however, premiums rise. With bonus protection, which can be added to liability or full comprehensive insurance, you retain your no-claims bonus, though typically only for one claim per year.

Costs and Premiums

The amount of your insurance premium depends on several factors beyond just your choice of insurance company. At CARIFY, we’ll show you how these are calculated and where you can save.

Premium Calculation

Your car insurance premiums are based on:

• Rate: Differences in rates and insured benefits affect the premium.

• Vehicle type: More expensive vehicles have higher premiums.

• Driver profile: New drivers pay more than experienced drivers. Age, gender, location, and driving behavior also influence premium amounts.

• No-claims class: Every year you drive accident-free raises your no-claims class.

• Additional coverage: Every additional insurance increases your monthly costs.

Ways to Save

Luckily, you can do several things to lower your ongoing vehicle insurance costs:

• Drive carefully: By driving with foresight and following traffic rules, you lower your accident risk, which benefits your no-claims class.

• Number of drivers: Adding additional drivers raises premiums.

• Mileage: Lower annual mileage reduces accident risk.

• Payment method: Annual payments are often cheaper than monthly ones.

• Vehicle class: Insurers differentiate between vehicles with high and low accident statistics.

Tips for Choosing the Right Car Insurance

Price and benefits are important when choosing car insurance, as is the service. Here’s what to consider:

Key Criteria

• Coverage amount: Is it sufficient for major damages?

• Types of insurance: Which optional insurance is sensible? Comprehensive insurance may not be worth it for older cars.

• Deductible: Balance the deductible with lower premiums for comprehensive insurance.

• Additional services: Does the policy include breakdown cover and rental car costs?

• Workshop binding: Does the insurance require repairs to be done at specific garages?

• Discounts: Some insurers offer special rates for new drivers or members of certain organizations.

Comparing Providers

Comparison websites let you compare offers from various companies. However, differing benefits or conditions can make direct comparisons difficult. Service should also be considered. How flexible are the insurers? How straightforward is the claims process? Customer reviews can be helpful here.

How to Act in the Event of Damage

With our tips, you'll respond correctly if damage occurs, ensuring a smooth claims process with the insurance. At the accident scene, you should collect evidence, take photos, and complete an accident report with other parties involved or witnesses.

Damage Report

Notify your insurance(s) as soon as possible, either by phone or online, and provide all relevant information:

• Accident location

• Time of the accident

• Accident report, police report (if available)

• Names and details of witnesses and those involved

Processing

The insurance evaluates the damage based on the documents and informs you in writing about whether and to what extent they will cover the costs. They may appoint an assessor for further evaluation. Only after the decision can you have your car repaired. The insurance will either cover the repair costs directly or pay you a settlement amount.

The Car Subscription with CARIFY – Worry-Free Package with Insurance

When you subscribe to a car with CARIFY, you don't have to worry about insurance. Our vehicles are comprehensively insured, and the monthly premiums are already included in your subscription fee. You also benefit from the favorable terms we've negotiated with Zurich Insurance. Plus, there's no need to worry about the no-claims bonus: your insurance rate stays the same even if a claim is made during the subscription period.

You can choose between three models:

*In the event of damage caused by drivers under 25 years of age, the deductible may be higher.

Conclusion

Comprehensive car insurance coverage is possible, but not always necessary. For high-value and newer cars, comprehensive insurance is worthwhile, but for older cars, it often isn't. Then there's the question of the deductible, which can quickly add up with multiple incidents. If you want to maintain your no-claims discount, you can book an additional service with your comprehensive insurance – or choose a car subscription with CARIFY. With us, you're fully covered, and in the event of an accident, you don't need to worry about being reclassified.

FAQs

What car insurance options are there in Switzerland?

You can comprehensively insure yourself and your car:

• Motor liability insurance

• Partial coverage insurance

• Comprehensive insurance

• Parking damage insurance

How expensive is car insurance in Switzerland?

The annual costs for motor liability insurance range from CHF 300 to CHF 1,000. Partial and comprehensive insurance is usually more expensive. By comparing offers, you can find the best prices.

What types of insurance are available in Switzerland?

In Switzerland, you can take out insurance for almost every aspect of life, including:

• Health insurance

• Liability insurance

• Household insurance

• Legal protection insurance

• Life insurance

• Accident insurance

• Vehicle insurance

Is car insurance mandatory in Switzerland?

Motor liability insurance is mandatory in Switzerland.