Danish car insurance costs have risen sharply since 2022, outpacing inflation. A new analysis reveals that Danes are paying an average of 17% more for car insurance.

The average annual cost of car insurance in Denmark is now DKK 9,079, which is more than DKK 1,300 higher than in 2022. While inflation reached 10% during the same period, it has since stabilized around 2%.

The 35-44 age group has experienced the largest increase in car insurance expenses since 2022. Their annual car insurance costs have risen by nearly DKK 1,300, averaging DKK 8,390.

Zealand and West Jutland have seen the most significant increase in car insurance costs across the country. Notably, the Region Zealand has also reported the second-highest increase in car owners filing claims.

Copenhagen has the highest car insurance prices, with an average of DKK 9,488, representing a 15% increase. Other regional price increases include Zealand (20.1%), Funen (8.9%), West Jutland (20.1%), South Jutland (8.9%), North Zealand (8.9%), and North Jutland (13%).

According to Pia Holm Steffensen, Deputy Director of Insurance & Pension, rising car insurance prices are not unexpected. Insurance companies are facing increased compensation expenses, and insurance costs have generally increased, similar to food and other consumer goods. Steffensen also noted that insurance policies cover increasingly complex and rapidly developing cars.

While many insurance companies have reported substantial profits from premium income in recent years, Steffensen stated that there is a logical connection between rising compensation costs and insurance companies raising prices.