Why Cheap Insurance Like HUK Can Become Very Expensive in the Future

At first glance, insurers like HUK or HUK 24 often attract customers with low premiums and promises of cost-effective coverage. However, many policyholders eventually realize that these low-cost policies come with hidden risks, limited benefits, and unexpected financial burdens. Here’s why “cheap” insurance providers like HUK can end up costing much more than expected.

1. Limited Coverage and Hidden Exclusions

Cheap insurance providers often cut costs by offering minimal coverage. While HUK may advertise competitive rates, a closer look at their policies reveals potential gaps:

• Exclusions in liability insurance: Certain scenarios, such as damages caused by multiple insurers (Mehrfachversicherung), might leave you partially liable, as recent cases have shown.

• Lower reimbursement rates: Policyholders may find that damages are not fully covered, leaving them with unexpected expenses.

A well-documented example is the case of Klaus Pajurek, where HUK demanded payment for a claim resulting from an accident he didn’t cause. This highlights how low-cost policies may shift financial burdens back onto customers.

2. Unfavorable Terms and Conditions

In 2022, HUK revised its Allgemeine Bedingungen für die Kfz-Versicherung (AKB), introducing less favorable terms for policyholders. For example:

• Claims involving Mehrfachversicherung now require customers to pay a portion of the damages, a practice not followed by most other insurers.

• Older contracts with better terms were automatically adjusted when customers switched products within the HUK group, often without clear communication.

These changes can leave customers unknowingly exposed to financial risks.

3. High Deductibles and Claim Costs

While HUK offers low premiums, customers often face high deductibles or insufficient payouts during claims. For instance:

• Lower payouts in total-loss scenarios: Replacement values might be calculated conservatively, leaving policyholders to cover the difference.

• Higher premiums after claims: Even minor claims can result in significant increases in monthly contributions due to aggressive reclassification into higher risk categories.

For example, in Pajurek’s case, HUK initially sought to increase his premium by 10% and downgrade his damage-free class by 14 levels after an accident he didn’t cause.

4. Customer Service and Claims Handling

Cheap insurers often reduce costs by limiting customer service. HUK customers frequently report:

• Long response times: Filing a claim or resolving disputes can be slow and frustrating.

• Unclear communication: Customers may struggle to understand their rights and responsibilities due to vague or overly technical responses.

These shortcomings become especially critical during emergencies when swift support is essential.

5. Lack of Flexibility for Policyholders

HUK is known for its rigid policies, leaving little room for negotiation or customer-friendly resolutions. While other insurers may act in the client’s interest to maintain a good relationship, HUK often relies on strict adherence to its terms.

In Pajurek’s case, the company initially refused to waive costs, even though industry standards suggest that insurers should not burden customers in such situations. HUK only relented after media attention – and even then, only as a “gesture of goodwill.”

6. Reputation and Industry Practices

Most insurers follow the guidelines set by the Gesamtverband der Deutschen Versicherungswirtschaft (GDV), ensuring that customers are not penalized for claims involving multiple insurers. However, HUK has deviated from these industry practices, creating risks for its policyholders.

This deviation not only highlights a lack of customer focus but also raises questions about the company’s long-term reliability.

Conclusion: Cheap Today, Expensive Tomorrow

While HUK and similar insurers may initially seem like cost-effective choices, their policies often come with significant hidden costs. Limited coverage, unfavorable terms, and poor customer service can turn a seemingly cheap insurance policy into a financial nightmare.

When choosing an insurer, it’s essential to look beyond the monthly premium. Consider factors like coverage, customer service, and long-term reliability. Opting for a slightly more expensive but comprehensive policy from a trusted provider can save you from costly surprises in the future. After all, cheap insurance is no substitute for peace of mind.