While practically unheard of in other European countries, in Switzerland, your nationality can have a huge impact on how much you pay for car insurance. Now, a new proposal would see premiums based on country of origin banned, on the grounds that it discriminates against internationals.
Under the proposal, due to be submitted to parliament by Social Democratic National Councillor Hasan Candan, drivers in Switzerland would no longer be charged different rates for car insurance based on their citizenship, age or gender. This would bring the country into line with regulations already in place in the European Union.
Instead, insurance rates would be determined by “many other” factors, “for example, the vehicle type and model, the age, performance or safety features of the vehicle, or the driving experience, accident history, place of residence and occupation of the insured," Candan told 20 Minuten.
Repeated studies into the issue have found that certain nationalities are significantly disadvantaged when applying for Swiss car insurance. In a study published by Comparis last year, it was found that a young Kosovar pays up to 74,4 percent more for car insurance than a Swiss citizen of the same age and experience. The same was true for North Macedonian (73,6 percent), Turkish (72,9 percent), Portuguese (24 percent), Spanish (20 percent), Italian (17 percent), French (5 percent) and in some cases German drivers (3 percent).
Comparis explained that the insurer uses nationality to determine the likelihood of the driver having an accident. This means that if a nationality has a high rate of road accidents in Switzerland, every motorist from that country is painted with the same brush and charged a higher insurance rate. Comparis noted that such a system would be illegal in the EU, as it would violate discrimination law.
In response to the proposal, the President of Switzerland and Finance Minister Karin Keller-Sutter (FDP) defended the current system, arguing that charging different rates based on nationality did not constitute discrimination “per se”. "Nationality alone is not a sufficiently objective reason to treat people differently – but it may be used as a basis for discrimination if objective reasons justify this," the Federal Councillor explained.
Under the current law, while companies are not allowed to bar certain nationalities from purchasing insurance, they can charge different rates based on nationality. These differences must be centred around “logical and risk-related considerations”, be based on evidence and be “reviewed regularly”.
Candan replied that he “completely disagrees” with the president: "It is a scandal that the Federal Council is turning a blind eye and wants to continue to tolerate this discriminatory practice by insurers." He added that parliament should respond to public opinion and approve the ban - a Comparis study from April 2025 found 57,3 percent of respondents are in favour of banning nationality-based premiums.
The proposal is now set to be submitted to parliament for debate.
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