2026 Premium Changes at a Glance
7-15%
Average premium increase
Up to 40%
For new customers
Up to 850 Euro
Potential savings by switching
Step 1: Why Premiums Are Rising
Several factors drive the 2026 premium increases. Understanding them helps you make informed decisions:
| Cost Factor | Current Level | Change |
|---|---|---|
| Workshop hourly rate | Over 200 Euro | +15% |
| Average liability claim | 4,200 Euro | +12% |
| Average comprehensive claim | 4,000 Euro | +10% |
| Spare parts costs | Increased | +18% |
| Electronic repairs | Increased | +25% |
Modern Cars = Higher Repair Costs
Today's cars have more sensors, cameras, and electronics. A simple bumper repair now often requires recalibrating safety systems, adding hundreds to repair bills.
Step 2: Watch Out for Hidden Increases
Not all premium increases are obvious. Here is what to watch for:
Changed Conditions
Some insurers reduce coverage while keeping the same price. Check if your policy still includes what you need.
No-Claims Discount Changes
Your Schadensfreiheitsrabatt might be recalculated, effectively raising your premium even without claims.
Regional/Type Class Updates
Annual updates to regional and type classes may increase your base rate without any policy change.
Check Your Renewal Letter Carefully
Compare every line with your current policy. Any change - even small ones - may trigger your special cancellation right.
Premium Increased? Compare Now!
Find a better deal in minutes. Our free comparison shows you all available offers.
Compare Car Insurance NowStep 3: Know Your Rights
German law protects you when insurers raise prices:
Special Cancellation Right (Sonderkuendigungsrecht)
- Triggered by any premium increase not caused by you
- You have 1 month to cancel after receiving the notice
- Policy ends when the increase would take effect
- Your no-claims bonus transfers to your new insurer
Regular Cancellation
Even without a premium increase, you can cancel your policy by November 30 each year, effective December 31. This is independent of when you signed up.
Step 4: How to Save Money
Here are proven strategies to reduce your premium:
Compare Every Year
Prices vary wildly between insurers. Comparing can save 200-850 Euro annually.
Potential saving: Up to 850 Euro/year
Choose Higher Deductible
A 300 Euro deductible instead of 150 Euro reduces your premium significantly.
Potential saving: 10-20%
Use Telematics
Apps or devices that track your driving can earn discounts for safe driving.
Potential saving: Up to 30%
Pay Annually
Annual payment is cheaper than monthly. Insurers charge 5-10% extra for monthly payments.
Potential saving: 5-10%
Additional Discounts to Ask About
Garage parking, limited mileage, second car discount, public employee discount, membership discounts (ADAC, unions). Every bit helps!
Step 5: Special Tips for Expats
Transfer Your No-Claims History
Some insurers accept driving history from your home country. This can significantly reduce your premium as a newcomer.
Start Building SF-Klasse
Every claim-free year reduces your premium. Starting at SF0, you reach the best rate (SF35+) over time.
Consider Liability Only Initially
For older cars, liability-only (Haftpflicht) may be sufficient and costs much less than comprehensive coverage.
Frequently Asked Questions
When should I switch insurers?
Any time your premium increases (use special cancellation right) or by November 30 for the regular switching period. Compare at least once a year.
Will my coverage gap if I switch?
No, your new policy starts exactly when your old one ends. You arrange the new policy first, then cancel the old one. There is no gap in coverage.
Do I lose my no-claims bonus when switching?
No, your SF-Klasse transfers to your new insurer. Request a confirmation letter from your old insurer and submit it to the new one.
Is the cheapest insurer always the best choice?
Not always. Check the coverage details, claim handling reputation, and customer service quality. Sometimes paying slightly more gives you better protection.
Summary: Your Action Plan
- 1Check your renewal letter carefully for any changes
- 2Compare offers from multiple insurers online
- 3Use your special cancellation right if premium increases
- 4Apply saving strategies: higher deductible, annual payment, telematics