Car insurance is one of the classes of insurance policies. It is the policy which covers the expenses for damages your car sustains due to accidents, or even theft. These situations can cause real financial and proprietary loss to you and damage to your car. In this article, we shall be discussing all you need to know about car insurance in Switzerland


The Switzerland Car Insurance industry is quite a complex one. Although there are various classes of car insurance available, only third party liability insurance policy is compulsory.

 The car insurance industry in Switzerland is under the regulation of the Swiss Financial Market Authority (FINMA). It is the body that regulates providers of car insurance coverage in Switzerland. According to FINMA data, car insurance in Switzerland represents the fourth most common form of non-life insurance after health insurance, building insurance, and accident insurance. Car insurance premiums accounted for CHF 5.97 billion in 2019, representing 20.9% of the non-life insurance market in Switzerland.

Generally, car insurance in Switzerland covers only the car in question and not the driver. However, some policies will cover extra drivers implying that others with a valid driving license can make use of your car. Similarly, for you to be able to drive someone’s car, then you need additional coverage or a fully comprehensive car insurance Policy. However, you can use most Swiss car insurance policies to cover additional vehicles of your own if you have transferrable number plates.

Transferrable number plates mean car license plates usable on many vehicles. It is often removed from one car and fixed on another. And it is only cars in the same category that can share transferable number plates. For regular cars, only a pair of transferrable number plates will be in use for a maximum of two cars. However, you can use a single set of number plates on unlimited number of cars in same category for utility vehicles, trailers and classic cars.


There has always been question on whether a car insurance policy from another country can be used in Switzerland, and the answer is in the positive to an extent. Yes, you can use car insurance from other countries that belong to the European Free Trade Association (EFTA) in Switzerland. And you can also use Switzerland car insurance when driving in EFTA countries. The EFTA is a regional trade organisation and free trade area. It comprises of four European countries of Norway, Liechtenstein, Iceland and Switzerland. It was founded in 3rd May, 1960 with the main objective of liberalising trade amongst its member states..

If you come to Switzerland from outside the EU/EFTA, you will usually need to take out a Swiss policy unless you have an extended policy that specifies that you can drive in overseas countries including Switzerland.


The three main types of car insurance in Switzerland are as follows:

Third party liability insurance

This is the minimum legal car insurance in Switzerland. It is compulsory.  In fact, you cannot even register your car and get your license plate in most cantons without third party liability insurance. Liability insurance covers damage to all third parties and their property in accidents where you or another insured driver of your car is at fault. However, it doesn’t cover any costs relating to you or your car.

Liability insurance typically covers up to CHF 1 million of damages in Switzerland. Premiums vary depending on factors such as car value, driver profile, and region. Average prices are around CHF 300–400 per year.

Partial Casco

Partial Casco insurance is a class of car insurance in Switzerland that covers damages to your car which resulted out of the fault of others. This insurance is essentially liability insurance plus coverage for your own vehicle due to incidents that are not your fault. Such incidents include natural disasters, fire, theft, vandalism and animal collision. Policies vary between insurers. Therefore, so it’s important to check what’s covered and what’s not. Common exclusions are glass damage, damage when in a parking area, and storm damage. You can usually include anything beyond the basic package for a higher premium.

Again, costs can vary greatly but you can generally expect to pay in the region of CHF 500–1,000 a year. Experts recommend considering this form of insurance for cars between 4–7 years old.

Fully comprehensive or full Casco

Fully Comprehensive, or full Casco insurance covers everything relating to you, your own car, and all third parties in accidents where you or another insured driver is at fault. It is the most expensive class of car insurance in Switzerland at roughly CHF 1,000–2,000.

Full Casco is not compulsory, however, it may be for Leasers’ of cars in Switzerland. This class of car insurance policy is ideal for pretty new cars. At least less than four years old or if you possess a car of high value.

Although this insurance is fully comprehensive, it won’t cover absolutely everything and again policies vary across insurers. Common exclusions are breakdown coverage, no-claims bonus protection, and damage or theft due to negligence. However, for any of the exclusions, you can pay extra premiums to cover them if you wish.


Notwithstanding the type of car insurance you choose in Switzerland, you can bolster it with other packages which are in exclusion. Below are some additional classes of car insurance in Switzerland and they include;

Parking damage car insurance coverage

Often times, you park your car at a parking lot only to meet it damaged by third parties. This class of car insurance covers damage arising from unknown parties while your car is in parking. Also, it is only available as an additional coverage with full Casco or fully comprehensive car insurance policies in Switzerland.

Passenger accident insurance 

This is a class of car insurance policy in Switzerland that covers injuries to passengers travelling in your car. This policy is necessary owing to the fact that standard third party liability insurance covers damage costs to third parties to the exclusion of medical costs. For this reason, most Swiss residents opt to have their own personal accident insurance. And this is more necessary when they have foreign visitors travelling in their car always.

Legal protection car insurance coverage in Switzerland

This class of car insurance policy covers legal expenses as a result of litigation. Most often, your accidents result in lawsuits and if you are unsuccessful, your insurers will pay the damages.

Breakdown assistance 

This is often times part of full Casco policies. It provides for costs such as repair and replacement transport in the event of a breakdown.

Gross negligence coverage

Most times we cause accidents out of our negligence. This class of insurance policy covers costs of accidents you cause through personal negligence. This negligence could arise as a result of driving above the speed limit. However, serious offenses such as drink driving and excessive speeding are usually in exclusion.

Bonus protection 

This class offers protections on your no-claims bonus if you have to make a claim. However, it is usually limited to one claim per year. There is has a no-claims bonus insurance system in Switzerland. The means is that your premiums decrease each year you don’t make a claim. Each insurance company has its own no-claims bonus scheme. Typically, your car insurance will decrease by between 5–10% for each no-claim year. There will be a cut-off point after which it will go no lower. With most insurers, this will be around a 30–40% discount but some may offer more generous deals. 

Similarly, just as you can get discounts for not making a claim, your premiums can also increase if you make regular claims. If you have a poor driving record, you can end up paying well over 100% of the standard premium costs. Typically, you can pay higher premiums if you Cause an accident through careless or negligent driving, or Have points on your license for violations such as speeding or drunk driving or you are a young or inexperienced driver.


There are some factors you should consider when making a choice of a car insurance policy in Switzerland. Some of them include;

Company reputation 

This is the most important factor you will have to consider when making your choice. To do this, you will check what the views of customers are like. And what is the rating of the insurance company by its Customers.


This is another factor to consider when choosing an insurance company. It represents the amount of money you need to pay if you are making any insurance claim. In Switzerland, this can vary between insurers but is typically around CHF 1,000 for drivers under 25 and CHF 500 for drivers 25 and above with less than two years of driving experience. While others pay no deductibles.

Convenient and easy Claims process 

It can be difficult to make a claim in one insurance company while it could be easy in another. In making a choice of an insurer, you consider how quick and easy the processes of making a claims process. This equally includes if they are other convenient ways like processing your claims online.

 Availability of No-claims bonus 

You have to consider what discounts in your premiums you will  get if you could not make a claim in any particular year. And equally check if you will be able to transfer no-claims periods from another insurer?

Exclusion clauses

You will need to read the policy documents carefully to find what the policy will cover and not. You will equally find out the jurisdiction of coverage. For instance, whether your policy extends to driving abroad or not. And this will enable you know what items you are covered on.

Unused car policy

In Switzerland, there is no need to insure your car when they are not in use. However, you will have to return the license number plates. In fact, some insurance companies will permit allow you to suspend your premium payments for periods which you are not using your car.

Availability of Special offers and discounts 

You will also need to check out some companies that offer premium discounts, for example to union members, on electric vehicles, or for paying your annual premium upfront.


They are a number of requirements you need when applying for car insurance policy in Switzerland as;

  1. Car registration details
  2. Your driving licence details
  3. Personal details or particulars
  4. And any other document the insurance company may require.

Fortunately, most insurance companies in Switzerland now allow prospective policyholders make an online application of their car insurance policy. This online application makes things quicker and easier. The best way to sort out your car insurance in Switzerland is to:

  1. Decide what type of coverage you want, e.g., liability or full Casco. Make sure you include any add-ons if they might not be included as standard.
  2. Compare terms from car insurance companies.
  3.  Take out your policy online.


If you need to make a car insurance claim in Switzerland, you should:

  1. Take pictures of any damage and record any witness statements if necessary.
  1. Complete your European accident statement form in the event of an accident. This is a standard form available all round Europe in various languages. The form helps get an agreed statement of facts about your accident and also helpful with insurance claims.
  2. Contact the emergency service centres in the event it is a serious accident.
  3. File your insurance claim with your provider. You can do this through phone calls, email, or using an online form depending on the company. However, most insurers usually give you details of their claims process and options available to you. The legal deadline for filing an insurance claim in Switzerland is two years.
  4. Forward invoices and payment receipts to your insurer as necessary.


You can cancel a contract with a Swiss insurer at any time, although notice periods range from 24 hours to three months depending on the insurance company. Usually, if you cancel early on a fixed-term policy, you may incur a fee. But you can change your Insurer without a fee if;

  1. The contract expires.
  1. You change your vehicle.
  2. Your premiums change. Insurers should give at least 25 days notice on any price changes.
  3. Ownership of the car changes. The new owner has 14 days to cancel any outstanding policy covering the vehicle.
  4. You are unhappy with the way a claim is dealt with. Both parties have 14 days to cancel the contract after each claim is made.
  5. You should cancel car insurance in Switzerland in writing to the address provided to you by the insurance company. Most Swiss companies operate an automatic renewal process, meaning that you will be tied in for another period if you don’t cancel in advance.


If you want to complain about a Switzerland car insurance company, you should follow these steps:

  1.  Try to resolve the issue with the company itself through alternative dispute resolution. Each company should have a complaints department and a complaints procedure that should be available on its website or in an information pack sent out when buying your car insurance policy.
  2. If you fail to resolve the problem with your Insurer, you can contact any of the Switzerland ombudsman services. You can find contact details for financial services and insurance ombudsmen on Swiss authorities online. Or make enquiries from the Federal Consumer Affairs Bureau (FCAB).


If you are still wondering why car insurance policy is beneficial to you, we shall here discuss why you need a car insurance policy and they include;


Most often, we cause accidents and damages to other road Users’ cars as a result of our negligence. And being on the guilty side, you may have to pay off the costs of the victim’s losses. It is the cost of fixing the victims car that your Insurer will now step in to provide. Thus you will not have to pay out of your pocket. Your insurance policy can settle these costs and you keep your monies. This is the sort of financial protection that car insurance policy provides.


Most times, auto lenders demand car insurance policy. Most especially If you take a load with the car, your lender might demand your car insurance policies to be sure you have a collision and comprehensive car insurance coverage in it. This measure ensures the value of their collateral doesn’t diminish when an incident occurs.


In case of accidents, your insurance policy can foot the bills of the affected passengers. This is a benefits accruing to third parties known as public liability insurance.


Car insurance rates in Switzerland depend on the insurance company in question. It also varies on the basis of the coverage you’re looking to buy.


As necessary as having insurance is, you must have the type of insurance that protects us against losses we could not handle financially but no more than that. It is to ensure that your plan doesn’t become a burden on your wallet. Here are some other ways that you can cut costs on car insurance.

  1. The type of car you drive has an influence on your car insurance premiums. Ensure that you get an estimate from your agent first before choosing an insurance policy.
  2. Some insurance companies are willing to offer better deals when you want to insure multiple vehicles than a single vehicle. You can take advantage of this by insuring multiple vehicles at once if you have more than one car.
  3. Be a responsible driver. It ensures fewer moving violations, accidents, or events that increase your insurance rates.
  4. You might need to commute to work on public transport sometimes. The reason is that the number of miles you drive the insured vehicle per year is reviewed and the more miles you drive, the more you are required to pay in insurance premiums. It wouldn’t hurt to use public transport once or twice a week to decrease your mileage. It might get you a significant discount.
  5. Install anti-theft devices in your car. It lowers the annual premiums because the plan you choose will no longer need theft coverage since your device handles that. It will result in a significant amount of savings, worth the trouble and expense.


Car insurance does not just protect you from yourself; it also protects you from other motorists.


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