Storm and Hail Weather Damage to German Cars Breaks the Billion-Euro Barrier
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Financial losses due to weather-related damage on German vehicles amount to billions - Financial losses from storm-induced damage on German vehicles amount to billions of dollars.
Last year, insurance companies footed a staggering bill of approximately 1.3 billion euros due to weather disasters affecting cars in Germany. In total, around 340,000 vehicles suffered damage, ranging from minor dings and scratches to the devastation caused by fallen trees or flooding.
Notably, the actual number of vehicles incurring weather-related damage exceeded the insured count. Comprehensive insurance is typically required to cover such damages, while liability insurance, the only legally necessary coverage, solely covers property damage caused by drivers.
Southern Germany Takes a Major Blow
Weather-related damages to comprehensively insured vehicles were largely centered in specific regions. Baden-Württemberg took a significant hit, with a whopping 133,500 vehicles damaged, accounting for approximately 40% of the total. The costs for Baden-Württemberg alone were a hefty 530 million euros. Bavaria came in second place, with 65,000 damaged vehicles causing an average expense of 4,300 euros per claim.
GDV CEO Jörg Asmussen declared 2024 an average year for weather-related car damages. However, the trend indicates that over the long term, weather damage has been on the rise, with more intense storms and hailstorms becoming a common occurrence.
Why the Rise in Storm and Hail Damages?
The surge in severe weather events, such as hailstorms across Europe, has significantly contributed to the increase in storm and hail damages in Germany. Insurance providers have reported a spike in claims related to these weather events, with hailstorms causing considerably high damage to cars. The combined ratio in motor insurance reached 111% in 2023, suggesting that claims have exceeded premiums.
Climate change, leading to more frequent and severe storms, is the primary cause for this trend. Hailstorms and strong winds have become more prevalent, particularly in regions such as Baden-Württemberg and Bavaria, resulting in widespread damage to vehicles.
Increased urbanization and the growing number of vehicles parked outdoors in these regional hotspots have also played a part in the recently reported damages. Southern Germany's sensitive climate and topography, which make these areas more susceptible to severe storms, further add to the problem.
The economic impact on the insurance sector has been substantial, with motor insurance underwriting profitability decreasing due to the escalating storm-related damages. On the other hand, the automotive aftermarket repairs sector is likely to flourish as the need for vehicle repairs following weather-related disasters increases.
- Despite efforts to minimize damages, unforeseen weather events such as hailstorms continue to pose a threat, exceeding the insured counts and causing lifestyle disruptions for car owners.
- Car-maintenance costs associated with unforeseen weather damages have significantly impacted many individuals' lifestyles in Germany, due to the increasing frequency and severity of hailstorms and storms.
- Moreover, the weather-forecasting data indicates that the frequency and intensity of hailstorms and similar weather events are likely to continue, causing further unforeseen damages to vehicles in the future.
