Can my insurer just raise the premium?

The short answer

Your insurer can raise the premium, but must adhere to strict rules. The increase must be reasonable and justified by, for example, increased costs or more claims. You must be informed about the increase at least a month in advance. If you disagree with the increase, you can usually cancel the insurance within a month without a penalty. This applies to most types of insurance, from car to home.

What does the law say?

The law sets clear rules on premium increases by insurers. The Financial Supervision Act and the general terms and conditions protect the rights of consumers. Insurers must be transparent about increases and may not arbitrarily adjust the premium. The contract terms often determine how and when increases are possible.

What should you look out for?

Pay close attention to the letter announcing the premium increase. Check if the reason for the increase is clearly explained and seems reasonable. Don't forget to take action within the set term if you want to cancel. Also check if there are alternatives within the same insurance product.

Practical example

Maria received a letter from her car insurer that her premium was going up by 15% due to 'increased claims costs in the sector'. She thought this was a lot and decided to cancel the insurance within the indicated one-month term. Because she canceled on time, she didn't have to pay a penalty and was able to switch to a cheaper insurer. By comparing various offers, she ultimately even saved money compared to her old premium.

What can you do?

When you receive a premium increase, you have different options to take action.