Car insurance

Overview of car insurance products

In Switzerland, the insurance companies provide various benefits with car insurance products. A comparison shows that premiums for liability, partial comprehensive cover or full comprehensive cover may vary significantly from insurer to insurer.

Third-party liability

Third-party liability insurance is mandatory in Switzerland for all drivers and vehicle owners. The cantonal driver and vehicle licensing office always requires corresponding proof of third-party liability insurance in order to obtain licence plates.
Liability insurance for vehicle drivers provides insurance cover for damages that you cause with your vehicle to someone else’s property or to other persons. In the event of an accident, third-party liability does not cover damages to your own vehicle.
The deductible for third-party liability depends on the age and experience of the insured party. Normally, persons under age 25 have a deductible of CHF 1000.00. Persons 25 and older who have had a driving licence for less than two years pay CHF 500 per year. In all other cases, the amount of the deductible is voluntary.

Partial comprehensive cover

Partial comprehensive car insurance is voluntary insurance and not required by law. Partial comprehensive cover covers damages for which you are not responsible and did not personally cause. It is advisable to take out partial comprehensive cover if the car is at least four to five years old.

The following damages may be covered by partial comprehensive insurance:

• Damage caused by martens
• Theft and robbery
• Damage due to natural elements: hail, storm, falling rock, avalanche, flooding, high water and landslide
• Damages from fire, such as short circuits, lightning strikes and cable fires
• Glass breakage
• Accidents involving wild animals
• Malicious damage

The voluntary deductible with partial comprehensive car insurance is generally not worthwhile. With a deductible of CHF 500, you’ll save CHF 100 per year on premiums. So, the deductible will only benefit you if you have no claims over five years.

Full comprehensive cover

Full comprehensive insurance consists of partial comprehensive cover and collision cover. For example, full comprehensive car insurance covers the damages that you personally cause to your own car. This also includes accidents that you cause, collisions with other vehicles and hitting street signs. With full comprehensive insurance, there is also the option to take out additional cover against parking damage.

In the case of new cars and demonstration models, it is always advisable to take out full comprehensive insurance. In the case of a leased vehicle, full comprehensive cover will be required by the leasing company.

Supplementary car insurance products

Insurance cover can be augmented with various supplementary modules and options. Car insurers often offer a wide selection of extensions. However, supplementary cover is expensive and should therefore be chosen with care.

Bonus protection

Bonus protection prevents the annual premium for car insurance from being raised in the event of a claim. The no-claims bonus system, which is widespread in Switzerland, awards accident-free drivers with lower premiums. Bonus protection can be chosen as a supplement for liability insurance and comprehensive insurance.

The bonus protection supplement is worthwhile if the bonus level is low, for example, 30% or 40%.

Motor legal protection

Motor legal protection insurance offers assistance and advice on legal questions and covers costs incurred for legal disputes in road traffic. Taking out motor legal protection insurance is worthwhile for persons who travel frequently outside of Switzerland and use their vehicle on a daily basis.

Passenger accident insurance

Passenger accident insurance covers benefits and medical expenses in the event of an accident. Passenger insurance is normally not needed. People with a place of residence in Switzerland are already protected against accident in full by their employer or health insurance fund. Passenger accident insurance should be taken out only if you drive foreign guests for professional or personal reasons.

Parking damage

When taking out full comprehensive car insurance, there is the option to insure parking damage as well. If the vehicle is left in a car park and damaged by other vehicles or persons, then the supplementary cover will pay for the damage, namely without deductible or loss of bonus.

Roadside/breakdown assistance

Car insurance should be taken out with the roadside/breakdown assistance supplement. Breakdown assistance is inexpensive and is often even available around the clock. Depending on the provider, breakdown assistance can be taken out for all of Europe or just for Switzerland / Liechtenstein. For those who travel abroad, breakdown assistance for the EU is advisable.

Gross negligence cover

If the damage was caused through gross negligence, the insurer has the right to charge the policyholder for the costs of the damage (right of recourse). Car insurers in Switzerland often determine if gross negligence is present based on whether the vehicle driver’s driving licence was confiscated.

Cover in the event of gross negligence can be taken out as a supplementary option for car insurance. Excluded from gross negligence cover are: alcohol, drugs and significant speed limit violation.

Replacement value supplement and purchase price protection

The replacement value supplement or replacement value protection means that in the event of a total loss, the insurance cover is somewhat higher than the effective fair value. In turn, the first years of significant depreciation for new cars are somewhat offset. In the case of leasing, the replacement value supplement must always be taken out.

With the purchase price protection supplement, the insurer will pay, for example, 100% of the purchase price in the event of a total loss. The model year of the vehicle is a decisive factor here. Such insurance is often offered only for new vehicles.