Type classes are an essential criterion that insurers in Germany use to calculate premiums for Car insurance pull in. They evaluate how risky a particular model is in terms of claims. The main focus is on the frequency and amount of damage that has occurred with a particular type of car in the past. There are type classes for motor vehicle liability insurance as well as for partially comprehensive and fully comprehensive insurance.
New type classes for motor vehicle insurance
In 2025, car insurance premiums in Germany will change due to the updated type class classifications. These classifications, which are carried out by the General Association of the German Insurance Industry (GDV), affect over twelve million vehicle owners. The new classifications will either increase or decrease insurance rates depending on your vehicle model’s damage and repair history. For many users, this could mean a noticeable difference in premiums.
“Around 7.1 million drivers will have higher motor vehicle liability insurance ratings in the future, and around 5.1 million will benefit from better type classes,” explained GDV Managing Director Jörg Asmussen at a meeting Press release. Around 30 million of the cars remain in the type class from the previous year.
Certain luxury models and SUVs, which tend to cause more expensive damage, will see larger rating increases. The Audi SQ5 3.0 TFSI Quattro rises by three classes. Vehicles like the Peugeot 3008 1.6 HDI are also rated more expensive, while models like the Toyota Yaris Cross Hybrid 1.5 and the Mercedes-Benz EQC 400 4Matic are each two classes cheaper.
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Comprehensive insurance is also affected
The costs for fully comprehensive and partially comprehensive insurance are also affected by the new type classes. The Hyundai Tucson 1.6, for example, becomes significantly cheaper because its fully comprehensive insurance class drops by three levels. However, some vehicles, such as the VW T6 Kombi 2.0, will have higher costs as both liability and comprehensive insurance ratings increase.
The type classes for motor vehicle insurance are based on damage and repair statistics from the last two to three years. “The logic of the non-binding GDV type class statistics is simple,” continues Asmussen. “If, on average, a car model causes comparatively few damages and low damage costs per vehicle, it receives a low type class, and if there is a lot of damage and high insurance benefits, it receives a high class.”
In addition to the type class, there are other factors that influence your insurance premiums. Regional classes, which are based on the accident statistics of the respective region, and individual factors such as your personal driving history or the vehicle’s annual mileage also play a role. These variables, together with the type classes, affect your final insurance premium.
Source: General Association of the German Insurance Industry
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