Insurers have long complained that claims in the motor insurance sector have risen sharply.

For example, in March 2024, Vaudoise noted during the presentation of its annual results that it had implemented premium increases in this segment and would introduce further adjustments. The insurer attributed the rise in costs to general inflation and vehicle electrification, among other factors.

Increase in high-tech parts as a cost driver

Experts at competitor Axa Switzerland have now calculated that the average collision damage in 2024 amounted to almost 3,400 francs — an increase of 21 percent compared to 2019. This means that claim costs have risen by about 4 percent per year. In total, Axa paid out more than 200 million francs for collision damages in 2024. The frequency of such accidents (in proportion to the number of insured vehicles) has remained unchanged.

In its press release on Thursday, Axa identified the growing number of expensive high-tech components installed in vehicles as a key cost driver. The company gave an example: «In 2019, Axa paid just over 900 francs on average for the replacement of a headlight; last year, it was more than 1,300 francs.»

Repair instead of replace

Michael Villiger, Head of Motor Claims and member of Axa’s Mobility Competence Center, explained: «Cameras and sensors have now become standard equipment in modern vehicles, especially due to driver-assistance systems.» He added that supply chain disruptions and general inflation — partly due to the COVID-19 pandemic — have also contributed to higher costs.

Axa does not intend to simply accept this cost surge but is taking measures together with garages. «Whenever possible and reasonable, we repair the affected car parts instead of replacing them,»Villiger said. «This is generally the more efficient and cost-effective solution — and it also helps protect the environment.»