In Switzerland, every car owner is required to subscribe to car insurance in order to register their vehicle.
When your vehicle suffers damage your insurance provider will pay the cost for repairing or replacing your car. In this post, we will explain how making a claim in Switzerland without the bonus protection extended coverage will penalize you heavily by increasing your annual premium the year which follows the claim.
Let’s start by understanding how Car Insurance in Switzerland is structured.
The structure of Swiss car insurance
Before we explain how the making a claim works, you need to understand how car insurance in Switzerland is structured. A car insurance package in Switzerland consists of three different modules, which are road-side liability, partial casco, and full casco.
The road-side liability insurance module is mandatory. If your motor vehicle collides with the car of another road user or vice versa the liability module will compensate for the repair of the third-party damage.
The partial casco module will compensate you if your car is stolen or sustains specific types of damage generally not related to the damage to its body and paintwork. Specific damage includes broken glass, fire, short-circuits and vandalism.
The full casco module is an all-risk protection which will compensate for the repair of your cars body and paintwork regardless of who is responsible for it.
What happens after you make a Swiss car insurance claim?
When you make a claim, it is module specific. This means a claim will only affect the module you solicit for the repair. The insurance company automatically charges the relevant module.
For example, if you hit a wild animal and damage your car, you will get compensation from the partial casco module of your Swiss car insurance plan (if you subscribed to it…).
But once you make the claim and the partial casco module compensates for the repair, a malus or 20% premium surcharge will be applied to your partial casco module from the beginning of the following calendar year. The same applies when you make a claim on any of the other modules. You can protect yourself from this large premium increase by subscribing to bonus protection extended coverage.
How bonus protection will avoid your annual car insurance premium from going up.
The bonus protection is an extra layer of protection to your motor vehicle insurance in Switzerland that prevents your insurance module’s yearly premium from going up by 20% when you make a claim.
For example, let’s say the annual premium of your car insurance coverage is CHF 1’500 and the liability module represents 45% of this cost. In this example, if you make a claim without having the bonus protection and the liability module pays for it, you will have to pay CHF 305 extra over the next 4-year period.Bonus protection would have saved you this amount.
For more information and to subscribe to the best Swiss car insurance plan for your vehicle, contact Charles McHugo, the expat-experts.ch certified insurance specialist on +41 78 601 40 90. Visit expat-experts.ch today to explore other Swiss personal insurance packages.