Car insurance average cost

Picture: Illustration car insurance average cost

Car insurance average cost. Many car owners overestimate the monthly cost of their car. You can find out where there is still potential for savings here

The daily commute to work, taking the child to the riding stable on the outskirts of the city, major purchases and, last but not least, weekend trips, as well as vacation trips – a car takes us from A to B, gives freedom and independence.

Depending on how a car is financed, whether new or used cars, the cost of a car can vary greatly.

In addition, there are taxes, insurance, MOT, parking fees, maintenance, regular inspection and repairs. But how much is that actually every month and where can you save? You can read that and much more here.

Read Also: How much does car insurance cost? We check the insurance prices

What expenses do drivers have to expect on a monthly basis?

For a realistic overview of expenses, it is not enough to add up tank receipts and insurance bills. In addition to possible loan or leasing installments, taxes, maintenance costs and the loss of value must also be included in the calculation - this is lapping up.

Read in the overview how the maintenance costs are concretely composed:

1. Acquisition cost:

The purchase price of a car is an important criterion for the total cost. If you cannot or do not want to pay the entire amount in cash, you must assume monthly installments for financing or leasing.

In addition, there may be special payments at the beginning or at the end of the term, depending on the agreement made in the contract.

2. Fixed cost:

At regular intervals, various invoice amounts must be paid, which are independent of whether a car is only in the garage or is being driven.

The fixed costs include vehicle tax, main and exhaust gas inspection, at least a liability insurance and other insurance benefits, for example a comprehensive or occupant accident insurance. Optionally, additional membership fees in an automobile club and parking space or garage rental can be added.

3. Operating cost:

Depending on how a vehicle is used, these expenses vary. These include, first of all, the expenditure on fuel.

But even if engine oil is purchased, the car is washed and maintained, or new tires or wiper blades are needed, so-called maintenance costs, these are operating costs. Any repair costs must also be taken into account.

4. Diminished value:

Most of all, the fact that a car is constantly losing value, most car owners underestimate. Even if expenses are made regularly to maintain the vehicle, it loses value at the same time.

The average loss of value across all car classes in the first year after the new registration is around 25 percent with 15,000 kilometers of mileage. With a new car costing 20,000 euros, that's a whopping 5,000 euros.

After that, however, the loss slows down significantly and is on average about 5 to 6 percent per year. A widespread fallacy:

A study with more than 6000 respondents from 2020 also shows that many motorists significantly underestimate the monthly costs for their vehicle.

The scientists of the RWI – Leibniz Institute for Economic Research and the Universities of Mannheim and Yale came to the conclusion that the expenses are estimated to be up to 50 percent lower than they actually are - on average 220 euros less.

The average total cost is around 425 euros per month, according to the experts.

3 Examples That Show How Monthly Expenses Break Down

The ADAC regularly publishes and updates a comparison overview, which shows the financial expenses for many different car brands and models. Three examples illustrate the monthly costs for a small car, a mid-size car and a luxury car.

In each case, a usage of five years with an annual mileage of 15,000 kilometers is considered. The components of the sum are the fixed costs, the operating costs and the loss of value – based on the used car value quotations of Deutsche Automobil Treuhand, DAT for short.

Compact car - Fiat Panda 1.2 8V Easy (51 kW):

With a new car price of 10,740 euros, maintenance amounts to 423 euros per month or 33.8 cents per kilometer. In the ADAC operating cost check, the little Italian has monthly fixed costs of 81 euros, workshop costs of 54 euros, 139 operating costs and a loss of value of 158 euros.

Fiat Panda 1.2 8V Easy

Mid-range car - VW Golf 1.5 TSI OPF ACT Comfortline (110 kW):

With a new car price of 26,650 euros, the monthly cost for a car of this class is 625 euros and 50 cents per kilometer.

In the operating cost check, 91 euros of fixed costs, 60 euros of workshop costs, 127 euros of operating costs and a loss of value of 347 euros come together for the Wolfsburg-based company per month.

VW Golf 1.5 TSI OPF ACT

Luxury class - Mercedes SLC 43 AMG 9G-TRONIC (287 kW):

With a new car price of 61,059 euros, the monthly costs add up to a proud 1,207 euros and 96.6 cents per kilometer.

In the operating cost check, 167 euros of fixed costs, 134 euros of workshop costs, 189 euros of operating costs and a loss of value of 717 euros come together for the Swabian monthly.

Mercedes SLC 43 AMG 9G TRONIC

Savings tips for car owners

Based on the example calculations – and the average costs for a small car of around 420 to just under 1,200 euros for an upper–class car - one or the other may be frightened by these high sums. But don't worry, there is always potential for savings – in various areas.

Before buying a car:

• For shorter distances, a small city car is often enough - an inexpensive model with moderate gasoline consumption. This saves the wallet considerably, because the taxes and the costs for car insurance are also within a manageable range.

• Annual cars are a cheap alternative to the new car. Up to 40 percent price difference is possible. However, then it may be necessary to make compromises in the desired equipment.

• The average repair and maintenance costs differ significantly between manufacturers and brands. They should therefore be asked before the purchase decision.

After buying a car:

• A fuel-saving driving style is immediately noticeable in lower gas station bills.

• The wear and tear of a car and thus its loss of value can be significantly reduced by an efficient driving style and regular care and maintenance.

• A cheaper car insurance saves money. In addition to the price, however, the scope of services should be kept in mind. Because saving at the wrong end is usually not worth it.

• The engine displacement and the pollutant class are decisive for the amount of vehicle tax. Since 2021, higher taxes have been due for newly registered cars with high fuel consumption for reasons of climate protection.

• While buyers of climate-friendly e-vehicles can look forward to the double e-car premium extended over time, combustion engine fans have to dig deeper into their pockets when it comes to vehicle tax. This applies in particular to SUV and sports car drivers.

• Drivers of older models can save taxes if they carry out retrofits such as installing a soot particle filter. This has a positive impact on the pollutant class.

How much does car insurance cost?

The cost of car insurance depends on several factors. On the one hand, by the type of car and engine – a small car usually costs less than a full-size model.

On the other hand, the age of the car and the driver, the damage-free class, the scope of insurance coverage, i.e. liability, partial or full coverage and the amount of the excess are relevant for the contribution amount, among other things.

On average, Germans spend around 250 euros per year on motor liability insurance; if a partial comprehensive insurance is added, it is about 340 euros, for a full comprehensive insurance it is about 565 euros.

Tip:

Check your car policy regularly, because some changes may affect the insurance premium. For example, renting a garage where the vehicle is safely parked overnight can result in cheaper contributions.

Are you thinking about where you can save costs in the future? Maybe your current car policy still offers a little savings potential. Calculate your favorable rate now conveniently with our online rate calculator and switch to Verti – the second largest car direct insurer in Germany (*)