Monday, 6th April 2026
Khabor Wala Desk
Published: 16th February 2026, 4:17 AM
A recent survey conducted by Verivox on 16 February 2026 reveals that German auto insurance premiums continued to climb throughout 2025, with comprehensive policies experiencing the steepest increases. Rising repair and parts costs, alongside subtle policy adjustments, have kept pressure on motorists, while insurers benefit from stronger pricing power that supports profitability recovery within the non-life sector.
The survey indicates that the majority of drivers received higher renewal quotes for 2025, often without having made any claims in the previous year. While both liability and comprehensive cover experienced upward trends, the extent varied depending on region, vehicle class, and individual risk profile. Comprehensive coverage, in particular, saw notable hikes, driven by costly electronics, glass, and collision repairs.
Some policyholders reported “hidden” increases via changes in coverage terms, such as higher deductibles, restricted workshop networks, or reduced additional benefits. This highlights the importance of scrutinising the details of a policy rather than focusing solely on headline premiums.
Table 1: Verivox Survey – German Auto Insurance Trends 2025
| Policy Type | Typical Premium Increase | Key Drivers of Rise | Notes on Hidden Costs |
|---|---|---|---|
| Comprehensive (Vollkasko) | 6–9% | Parts inflation, ADAS/electronics repairs, glass claims | Deductible hikes, limited workshops |
| Liability (Haftpflicht) | 3–5% | General repair inflation, occasional weather damage | Minor coverage reductions possible |
| Combined Average | 4–7% | Vehicle complexity, storm events, labour shortages | Watch for adjusted clauses |
Inflation in parts, constrained repair capacity, and increasingly complex vehicles—particularly those equipped with advanced driver-assistance systems (ADAS) and electric drivetrains—have elevated claim costs. Calibration, battery checks, and high-tech glass replacements add both time and expense. Year-to-year weather events, such as storms or floods, have also contributed to volatility in premiums.
Sustained rate increases bolster the GDV’s outlook for 2025 profitability in motor insurance. Provided claims frequency remains stable and severity does not escalate further, margins in the non-life sector are expected to improve. Investors can interpret continued pricing discipline as a positive signal, though potential adverse weather events remain a risk factor.
Policyholders are advised to:
Compare multiple quotes and read renewal letters carefully.
Evaluate coverage line by line, including deductibles and glass clauses.
Consider telematics or mileage-based discounts.
Optimise workshop networks and ensure declared security features are accurate.
Even amid rising premiums, strategic adjustments in coverage and deductible planning can mitigate the financial impact without compromising protection.
The latest Verivox survey confirms that German auto insurance costs remain on an upward trajectory, with comprehensive coverage experiencing the largest increases. Cost pressures from parts, labour, and complex repairs are the primary drivers. Drivers should be proactive in reviewing policy terms, while investors can view the sustained pricing environment as supportive of non-life sector recovery in 2025.
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