Insurance Shenanigans: What’s Going On with HDI?
Michael C. from the picturesque Rosenheim district seems to have just discovered the dark side of motor vehicle insurance. The man drives a VW Up, and I’d say that with 170,000 km on the clock, it’s seen more action than a soap opera star! But what he didn’t anticipate was that HDI, the insurance company he entrusted with his beloved tin can, would decide to raise his premiums by a staggering 80% for partial comprehensive coverage in 2025. Now, for just €715 a year, he might as well start a savings fund to buy an actual new car! That’s right, folks, he’s about to fork out nearly €700 more just to keep his car insured—it’s like they think he’s going to wrap it in gold or something!
To add insult to injury, HDI’s invoices come with all the transparency of a well-placed mirror: there’s no mention of an adjustment. Michael had to channel his inner accountant to work out that he’s being squeezed from €390 to €715. That’s a wonderful 144% increase in just two years. I don’t know about you, but at that rate, I’d start expecting a complimentary car wash with each payment!
HDI’s “Special” Approach to Insurance
Now, before we start feeling sorry for HDI, let’s talk about their rather unique reasons for these hikes. Apparently, they’ve had a rough time, suffering what they describe as “technical losses” in 2023. I wonder: did a black hole swallow their profits? In their defense, they claim they’re just trying to ‘restructure’ their portfolio. Well, good luck with that! Perhaps they should consider restructuring their outrageous pricing instead.
Who Else is Feeling the Pinch?
Shockingly, it’s not just Michael C. being soaked! Other drivers are also sharing in the joy of increased insurance premiums of up to 40%. Some say it’s all due to the skyrocketing costs of spare parts and repairs. Just imagine your car getting caught up in a hailstorm—it seems cars in Germany are spending more time in the repair shop than on the road!
What Should You Do?
User-friendly tips begin here! If you want to escape this madness, you need to be aware of the cancellation deadline—four weeks. It’s like a game of insurance chicken, where you have to sign that new contract first or you might just end up stuck paying your HDI bills until you retire. And forget about trusting an auto-renew! That’s the insurance equivalent of leaving the front door open with a sign saying, “Please rob me!”
Four Points to Consider When Changing Insurers
1. Coverage Amount
Much like the A-Team, you want a hefty amount of coverage. The ADAC has recommended up to €100 million—because why not insure against global catastrophes while you’re at it?
2. Discount Protection
Let’s say you had an accident—as if that’s ever happened to anyone—discount protection means you get “at least a free shot.” Kind of like when your mate says that neat trick once, and suddenly you’re the star of the show.
3. Mallorca-Police
Who doesn’t want their insurance to cover their misadventures abroad? I mean, I’d rather the insurance covers my fun than my parent’s idea of a “family getaway”!
4. Gross Negligence
No, we’re not talking about your uncle’s penchant for karaoke—this covers accidents where, if you’re distracted, the insurance might just bail you out. Just don’t try this one while driving after a few drinks—or just, you know, don’t drink and drive!
Switching or Negotiating – Choose Your Adventure
You’ve got choices! Want to stick with your current insurance? Try negotiating! Just slide in like you’re a magician and say, “Abracadabra, give me a better rate!” Remember, insurers calculate premiums based on 50 factors. Some are out of your control, but others—like driving performance—are totally in your hands… unless you’re giving joyrides to your mates all the time.
And What Did Our Hero Michael Do?
In the end, Michael C. decided enough was enough. Within 10 minutes, he made the leap to Allianz and cut his costs down to €352 a year—now that’s more like it! He’s even thinking he might deserve a medal for that philosophical journey from HDI anguish to Allianz triumph. So, here’s hoping every one of you gets to mimic that triumphant switch!
Remember, dear readers, in the world of car insurance, it pays to think outside the box—just make sure your box isn’t being ticked by HDI!
Michael C.* from the Rosenheim district did not expect such a calculation: his motor vehicle insurance company, HDI, charges 80 percent more for partial comprehensive insurance in 2025. C. drives a VW Up, with 170,000 km on the clock, for 15,000 km per year insured. This should now cost 715 euros a year. “I’ll almost be able to buy a new car with the annual fee,” he says angrily.
What’s particularly tricky is that HDI only sends one invoice. There is no mention of a contribution adjustment. The customer has to calculate for themselves whether the contribution is higher than last year and by how much. For C. it goes up from 390 euros to 715 euros, a jump in contributions for the second year in a row: “In 2023 I still paid 293 euros. That’s an increase of 144 percent in two years.”
HDI increases vehicle insurance by an average of 50 percent
He didn’t have an accident and the type class even went down. The HDI seems to be a special case among motor vehicle insurance this year. The company made a severe technical loss in the division in 2023 and is now trying to restructure the portfolio, reports the magazine “ Insurance Monitor “. With the drastic increase, HDI Insurance also wants to test the point at which price increases lead to a significant change in cancellation behavior among motor vehicle customers. On average, the insurance company increased premiums by 50 percent.
The HDI itself justifies the increase in contributions with increased damage, rising repair costs and a more expensive supply of spare parts. No wonder: in the first half of 2024 alone, storm and hail caused 400 million euros in damage to the automotive sector in Germany.
On average, contributions increase by 25 percent
Many drivers are currently receiving mail with the new vehicle insurance premiums for 2025. The invoices show that it is not just the HDI that is seeing large increases, customers of other insurers are also reporting increases of 30 to 40 percent. Here too, insurers such as Huk Coburg point to sharply increased costs for spare parts.
“The market average prices for motor vehicle insurance are currently 25 percent higher than the previous year,” writes the comparison portal “Verivox” in response to a request from FOCUS online. However, insurers continue to compete for new customers with cheap offers. This means that a change can definitely be worthwhile: “Cheap tariffs are currently on average 28 percent lower than tariffs in the middle price segment,” says Verivox.
What is important when changing car insurance?
The first thing customers need to do when changing their car insurance is to keep an eye on the special cancellation deadline. It is four weeks. If you want to cancel your old car insurance, you should only do so once you have signed a new contract – or, even better, use the cancellation service of your new provider.
Four points are particularly important in the new tariff:
1. Coverage amount
The amount that motor vehicle liability insurance covers in the event of damage must not be too low, because anything beyond that is borne by the policyholder himself. The ADAC recommends a maximum coverage of 100 million euros.
2. R discount protection
Normally the premium increases when you report damage. With discount protection you usually have at least a free shot. In contrast, with very cheap tariffs it can happen that you are upgraded particularly high when you need the insurance.
3. Mallorca-Police
Car insurance should cover damage to rental cars abroad.
4. Gross negligence
There are policies in which insurers refrain from pleading gross negligence, for example if you were distracted and caused an accident. However, drunk driving and grossly negligent theft are still usually excluded here.
Don’t change and still save
If you don’t want to change, you can try to negotiate the premium with your insurance company. Insurance agents in particular can turn the premium screw if you ask them about it.
In addition to switching, there are a few adjustments that drivers can use to reduce their premium, emphasizes Verivox. Insurers use more than 50 factors to calculate rates. Drivers have no influence on some of these – for example the regional class, which depends on where they live, the type class, which is determined by the vehicle, or their age. They can then actively influence others:
- Pay for damages yourself : One of the most important factors influencing the vehicle insurance premium is the no-claims class. It increases with every year that drivers travel without claims being settled by the motor vehicle insurer. However, if you let your insurance company pay for accident damage, you will be downgraded by several classes in the following year and lose important discounts. According to
Model calculation from the comparison portal Verivox
It is worth paying for liability damages up to 2,555 euros and fully comprehensive damages up to 3,408 euros yourself. - Driving performance : Fewer kilometers driven means a lower risk of damage and therefore lower premiums. In a Verivox analysis, adjusting the mileage from 10,000 to 5,000 kilometers per year for a 45-year-old Golf driver from Berlin brings an average cost advantage of 16 percent
- Workshop binding : If insured people choose a tariff with a workshop connection, they pay an average of twelve percent less for their vehicle insurance. Drivers only have to contact a partner workshop of their insurance company in the event of comprehensive insurance cases. You can continue to have annual inspections or repairs carried out in a workshop of your own choosing, apart from cases of damage.
- Deductible : A deductible reduces insurance premiums. Insured people pay 28 percent less on average if they opt for a deductible of 300 euros for fully comprehensive insurance and 150 euros for partial comprehensive insurance.
- Annual payment: Anyone who pays their car insurance annually instead of monthly saves an average of six percent per year.
- “Parent trick”: Novice drivers are asked to pay heavily. You can save on car insurance if you initially insure your vehicle through one parent for a few years and register as an additional driver. The acquired no-claims classes can later be transferred from parents to the child.
- Avoid age surcharge: Seniors have a higher risk of accidents – and car insurers take this into account with higher premiums. Older drivers can save on car insurance by insuring and registering their vehicle through younger family members. According to a Verivox model calculation, an 85-year-old Golf driver from Hamburg saves 54 percent (365 euros) if he transfers his vehicle and its no-claims classes to his child, who is 30 years younger.
- Check driver circle : Have the children now left the nest and no longer use the car? Then this should also be adjusted for the vehicle insurance. For example, a golf driver saves an average of 38 percent if he takes his 20-year-old child out of the insurance contract.
- Use seasonal license plates : If you only drive your car seasonally, it’s worth getting a seasonal license plate to save on insurance premiums when you don’t use it.
Insurance customer Michael C., on the other hand, has decided to switch: “I’m now going to Allianz directly. There I pay 352 euros. It would have even been a few euros cheaper. But I perform a little better this way,” he says. The change cost him 10 minutes – and at least for the next year C. will only pay half as much. “So now it’s really worth changing.”
*Name is known to the editors
