Particle.news
Download on the App Store

German Car Insurance Costs Surge 10.9% as Watchdog Scrutinizes Pricing

Drivers face a December 1 switching deadline with substantial savings available from shopping around.

Overview

  • Official data show motor insurance prices were 10.9% higher in September 2025 than a year earlier, while overall inflation was 2.4%, and repair and inspection services also rose.
  • Insurers attribute increases to more expensive repairs and parts, with Verivox reporting roughly 6% higher partial-cover premiums and about 8% higher comprehensive rates in market samples.
  • BaFin says it will examine whether new-customer discounts disadvantage existing policyholders and can restrict product distribution if unfair practices are found.
  • Consumer tests indicate large dispersion in offers, with potential savings up to €1,500 when switching and modeled gaps of up to about 52% between midrange and cheaper tariffs.
  • Policyholders can cancel by December 1, 2025 for year-end contracts due to the calendar shift, have special termination rights after premium hikes, and may lower premiums by raising deductibles or agreeing to workshop binding.