Germany Prepares for Rising Car Insurance Premiums Due to Increasing Costs and Regional Class Changes

Many people in Germany are already preparing for rising premiums for their car insurance for the coming year. This is mainly due to the sharply skyrocketing costs for spare parts (supply chain issue), smart tech in general and the higher personnel costs for repairs. Annoying when the regional class in the home vehicle registration district also increases.

However, this will be the case for 3.8 million or 3.3 million of the approximately 42 million vehicle owners in Germany. The non-binding, but used by almost all insurers, new regional classes for the 412 German registration districts according to the calculations of the GDV are already fixed. For most people, however, these will only change with the new car insurance premium from January 1st, 2024.

There are increases in motor liability insurance in 45 districts, which will affect around 3.8 million drivers. Classes will be lowered in 31 counties and for 2.2 million. In the remaining 336, there are no changes for the 36.4 million motor vehicle liability insured persons registered there. The highest and therefore most expensive possible regional class here is 12. Among the large cities with over 300,000 inhabitants, Berlin is the only one that achieves the highest regional class.

3.3 million owners receive a higher classification in fully and partially comprehensive insurance. It tends to be cheaper for 3.7 million people with comprehensive insurance. Nothing will change for the remaining 30.6 million people with comprehensive insurance. In partially comprehensive insurance, the regional classes go up to 16, in fully comprehensive insurance up to 9. Although Berlin is also at the top in both comprehensive insurance areas (partial comprehensive insurance: 10; fully comprehensive insurance: 8), it does not reach the most expensive regional classes. Münster, on the other hand, has the 4 in motor vehicle liability and the very low-damage 1 in comprehensive insurance.

The regional classes do not result from the number and extent of damage that occurs in their geographical area, but from the number and extent of damage caused by registered vehicle owners in these districts – regardless of where the damage occurs. However, an increase in the regional class does not necessarily mean an increase in insurance premiums. A higher no-claims class, the inclusion of soft discounts or a change of vehicle, for example, can also reduce the premium compared to the previous year.

If you want to find out whether and if so, how your regional classes have changed in your home registration district, you can on this GDV service page by entering his zip code.