The most important factors in calculating an insurance premium are vehicle model, the age and experience of the main driver, the non-claims category, the residence of the vehicle owner, the annual mileage, the purpose of use of the vehicle (private or business) and the scope of the coverage selected (liability, partial coverage, full coverage).

• Vehicle type: The brand, model and the year the vehicle was built all come into play. Certain vehicles types may be cheaper or more expensive to insure due to repair costs, theft rate and security features.
• Scope of coverage: The scope of coverage you select, e.g. liability, partial coverage or full coverage, will affect how much your premium is. Additional options and coverage may also alter your contributions. 
• Driver profile: Information about the main driver, such as age, driving experience and previous claims history, are also factored into the calculation. Young, more inexperienced drivers, or drivers with an extensive history of claims, may also pay higher premiums.
• Usage and mileage: How often you use your car, and for what distances, can also have an impact on premiums. A vehicle that has travelled smaller distances overall can be insured for cheaper than a vehicle used regularly to cover long distances.
• Place of residence: The place/canton of residence where the car is predominantly parked or registered can also affect premiums seeing as areas more prone to theft or natural phenomena (e.g. hail, flooding) are categorized as being higher risk.

A vehicle premium depends on numerous factors that increase the risk and potential costs of insurance. Here are a few key factors that may contribute to this:

• Vehicle type and model: Premium, powerful and luxury cars tend to be pricier to insure because the insurance premium is calculated based on the vehicle’s price when new. A higher price when new is also frequently linked to higher repair and replacement part costs, and a higher risk of theft.
• Engine power: Vehicles with powerful engines and a lot of HP are often categorized as higher risk because there is a greater danger of losing control of the vehicle, which means a higher risk of accident.
• Value of the vehicle when new: More expensive vehicles are pricier to insure because the costs of repair or replacement are higher in the event of a claim.
• Repair costs: Vehicles requiring expensive parts or parts that are difficult to come by mean higher insurance premiums.
• Accident and theft statistics: Models that are statistically involved in more accidents or are at a higher risk of theft tend to be associated with higher insurance premiums.
• Vehicle use: Cars used for business purposes or with a high annual mileage may be more expensive seeing as there is a greater probability of damage or accidents due to wear and tear.
• Location: A place of residence with higher rates of theft, vandalism, natural phenomena or accidents may also lead to higher insurance premiums.
• Driver profile: The age, driving experience and no-claims category of the driver also have an impact on costs. Young drivers and those with a history of traffic collisions or accidents often pay more.
• Scope of coverage: More comprehensive coverage, e.g. full coverage with additional services (such as parking damages, breakdown assistance), comes with higher premiums.

These factors reflect the risk that insurance companies run when they insure a vehicle. The higher the likelihood of damage occurring, and/or the costs this comes with, the higher the premium tends to be. Insurance companies calculate these risks to offer fair, but also economically viable premiums.

Liability insurance is legally required and regulated. Without liability insurance, a vehicle cannot be insured or driven on Swiss roads in line with regulations. It covers damage you cause to other people, vehicles, objects, etc. by using your vehicle.

Partially comprehensive insurance offers added protection for certain damage to the driver’s own vehicle that can be attributed to force majeure. This includes: Vandalism (sometimes), natural phenomena such as floods, storms, hail and fire, as well as collisions with wild animals (accidents involving wildlife).

Fully comprehensive coverage offers the most extensive level of coverage and also covers damage to the driver’s vehicle that they are responsible for, as well as any damage caused by vandalism.

You can find more information in the The link will open in a new window GTCI (PDF).

• Intent: Damage deliberately caused by the policyholder or with their consent is not covered.
• Hit and run: Damage to the driver’s vehicle as a result of hit-and-run driving may in some circumstances be excluded from coverage, especially if the policyholder is responsible.
• Gross negligence: Damage caused by gross negligence on the part of the driver is excluded from insurance coverage, unless additional “Gross negligence coverage” has been taken out. This includes driving under the influence of drugs or alcohol, as well as gross violation of traffic rules (taking part in street races, jumping a red light, and so on). Policyholders have the option of adding gross negligence coverage with PostFinance car insurance.
• Usage for illegal purposes: Damage caused when the vehicle is used for illegal activities is not insured.
• Alcohol and drug use: Damage caused under the influence of alcohol or drugs is generally not covered by fully comprehensive insurance.
• War, nuclear, civil unrest: Damage caused by war, nuclear or civil unrest is not covered.
• Wear and tear: Natural wear and tear and the resulting damage is not covered by fully comprehensive insurance.
• Unauthorized drivers: Damage caused when an unauthorized individual is driving, or an individual not listed in the policy, may not be covered in some instances.
• Competitions: Damage resulting from taking part in (legal) races, rallies or similar competitions are generally not covered.
• False statements: If demonstrably false statements were made regarding claims history, the main driver or vehicle usage when taking out the policy, any subsequent damage caused is often not covered by the policy.

You can find more information in the The link will open in a new window GTCI (PDF).

There are several situations when it makes sense to review your current policy and recalculate the premium in order to make sure you are getting the best coverage at the best terms. Here are some key points to check:

• Contract expiration and notice periods: Ideally, you should get some quotes for comparison several weeks before your current insurance contract expires. This gives you enough time to compare offers and to comply with contractual notice periods.
• Change in personal circumstances: Life events such as moving, illness, marriage or retirement can have an impact on insurance premiums because they can change your risk profile.
• Change in vehicle use: A major change in annual mileage, in the professional use of the vehicle, or a change in main driver, can be grounds for recalculating a premium.
• Following a change in vehicle: If you change your car, regardless of whether it is for a new car or a second-hand car, you will have to take out a new car insurance policy. At this point, we recommend comparing several quotes to find the best offer for you.
• Changes to the vehicle: Modifications or updates to a vehicle, e.g. adding an expensive audio system, aluminium tyre rims or other expensive accessories, can require adjustments to the insurance sum and therefore the premium as well.
• Personal budget changes: If your financial situation changes and you are looking for a better value-for-money policy, or you want to adjust your own excess to reduce the annual premium.

The premiums for the same car insurance policy may differ from insurer to insurer for several reasons. Each insurer assesses risks in their own way, using various criteria and models in the process. Moreover, coverage that appears identical at first glance may differ in its scope from insurer to insurer.

Potential savings amount to around CHF 30 compared with a payment every six months, and CHF 90 compared with a quarterly payment.

Special equipment in vehicles refers to optional extras or features that go beyond standard equipment, and which are added on a custom basis to improve comfort, safety, appearance or performance. These features may be ordered ex works if it is a new vehicle, or incorporated subsequently. Here are a few examples of special equipment that might be available in vehicles:

• Heated seating or ventilated seats: For added comfort in different weather conditions/temperatures.
• Electronically adjustable seating with a memory function: Allows you to “save” seating positions.
• Premium audio and infotainment systems: Provide superior sound quality and expanded features.
• Automatic air conditioning: Automatic regulation of inside temperature and ventilation.
• Panorama sunroof: Lets more light inside the vehicle and improves the sense of space.
• Special coats or film: These include things like custom paints or protective films.
• Light metal alloy wheels: In addition to the visual upgrade, these offer benefits in terms of weight and driving dynamic.
• Sports packages: These often involve changes to the exterior for a sportier design.
• Engine tuning: Improvements to engine performance through software tweaks or software modifications.
• Sports chassis: Improves driving dynamic and enables a sportier handling experience.
• Adaptive cruise control (ACC): Automatically maintains distance from the vehicle in front.
• Lane departure warning system (LDW): Warns the driver or intervenes if the vehicle leaves its lane.
• Parking sensors/assistant: Makes parking easier with audible signals or automatic driving.
• Reverse camera or 360° camera systems: Provides a better all-round view when reversing, manoeuvring or parking.
• Satnav with real-time traffic information: Helps with route planning and avoids traffic hold-ups.
• Wi-Fi hotspot and smartphone integration: Allows you to use online services and to connect with ease to mobile devices.
• Parking heating: Heats the inside of the car without starting the engine prior to use.
• Trailer hitch: For transporting trailers or bicycle racks.