Sources and authorities used
Car insurance 2026: what the data actually says
Premiums rose significantly in 2025. According to GDV, premium income in the car-insurance segment increased by +13.4% to around 38.6 billion EUR. Further increases are expected for 2026.
GDV has not published a car-insurance-specific 2026 forecast. The only official forward-looking figure is +5.2% for the entire property/casualty segment. When you see headlines such as "up to 20% more expensive", those numbers come from market analyses and broker reports, not from GDV. What ends up on your invoice depends on your tariff, your vehicle, and your location. That is exactly why comparing with your actual data matters more than any headline figure.
+13.4%
KFZ premiums 2025 (GDV, segment growth)
+5.2%
Property/casualty 2026 (GDV outlook, not KFZ-specific)
30 Nov.
Usual switching deadline
Watch out for hidden increases
Sometimes your premium rises without any change to your tariff, for example because your vehicle's type class or your district's regional class has been updated. Read your renewal letter carefully and compare it with the previous year's figure.
Why premiums are rising
The underlying reason is straightforward: insurers paid out more than they took in. In 2023 the combined ratio exceeded 111%, and in 2024 it stood at 104%. Over those two years combined, the sector posted a loss of almost 5 billion EUR (GDV). Only in 2025 did the segment return to slim profitability, with a combined ratio of roughly 96%.
The main driver is the cost of repairs. Modern vehicles are packed with sensors and electronics, so even a minor parking scratch can run into four figures. GDV names these specific cost factors:
| Cost driver | Trend | Context |
|---|---|---|
| Workshop hourly rates | approx. +8% per year | approx. +50% since 2017 (GDV) |
| Spare-part prices | approx. +6% per year | approx. +75-80% since 2014/15 (GDV) |
| Average liability claim 2024 | approx. 4,250 EUR | approx. +7% vs. 2023 (GDV) |
| Natural-hazard damage 2024 | 1.3 bn EUR | approx. 340,000 vehicles (GDV) |
Source: GDV (projection October 2025, claims balance 2024). Figures rounded. For context: general consumer prices rose considerably more slowly over the same period.
Compare car insurance for your vehicle
Enter your vehicle and postcode. The comparison takes into account your type class, regional class, and SF-Klasse and shows you the matching tariffs. Free, no sign-up, and done in minutes. How much you save depends on your starting point; the comparison calculates it for you.
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Spotting hidden premium increases
Not every increase is immediately visible. The Verbraucherzentrale recommends checking these four points:
New type class
Your vehicle model has been reclassified to a higher group; your premium rises even though your tariff stays the same. More on type classes 2026.
New regional class
Your registration district has been re-rated; your premium changes accordingly. More on regional classes 2026.
Downgrade after a claim
After reporting a claim you drop back to a less favourable SF-Klasse, which can raise your premium noticeably.
Tariff adjustment
The insurer changes its tariff structure. Compare the old and new versions carefully; sometimes switching makes more sense than staying.
Electric cars and repair costs
Electric vehicles often generate higher repair costs than combustion-engine cars after an accident. The main reasons are the expensive high-voltage battery, the need for specialist workshops, and the fact that damaged batteries frequently have to be replaced in full for safety reasons. If you drive an EV, pay attention to battery and charging-technology cover when comparing policies. More details are in our electric car insurance guide.
What to check for electric vehicles
- Battery cover: does the policy cover damage to the high-voltage battery, including deep discharge?
- Charging technology: is a wallbox or charging cable covered against theft or damage?
- All-risks cover: some tariffs offer an all-perils extension specifically for EVs.
No-claims class (SF-Klasse) explained
The SF-Klasse is one of the biggest levers for your premium. Every claim-free year moves you one step forward, and the higher the class, the cheaper it gets. If you were insured abroad before, you can often have your claim-free period credited. Ask your new insurer what documentation they need for this.
SF-Klasse and approximate discount
Indicative values. Each insurer sets its exact discount independently.
| SF class | Meaning | Discount trend |
|---|---|---|
| SF 0 / SF 1/2 | New driver, no claim-free period | no discount |
| SF 1 | 1 claim-free year | slightly cheaper |
| SF 5 | 5 claim-free years | around one third cheaper |
| SF 10 | 10 claim-free years | about half the base rate |
| SF 20+ | 20+ claim-free years | most favourable levels |
Tip: Under some conditions you can also transfer an SF-Klasse from a parent's policy. That saves years of waiting as a new driver. Your new insurer will tell you which confirmations they need.
eVB number: the key to vehicle registration
The eVB number (elektronische Versicherungsbestätigung) is a seven-digit code that you receive from your car insurer. Without it you cannot register your vehicle at the Zulassungsstelle. For newcomers this is often the first contact with the German car-insurance system.
How to get your eVB number
- 1Compare tariffs and choose a provider
- 2Take out the policy
- 3Receive the eVB number by email or post
- 4Take the number to the Zulassungsstelle
Importing a car from abroad?
If you are bringing your vehicle with you, you will need proof of your previous insurance for the re-registration. Your German insurer can also help you have your claim-free period from abroad checked and credited.
Partial or comprehensive cover: when each is worthwhile
Choosing between Teilkasko and Vollkasko is one of the most important decisions. It depends mainly on your vehicle's value and your budget.
| Criterion | Partial (Teilkasko) | Comprehensive (Vollkasko) |
|---|---|---|
| Covers | Theft, fire, storm, hail, animal collisions, glass breakage | Everything in partial, plus at-fault accidents and vandalism |
| Suited for | Cars around 5+ years old or worth roughly under 8,000 EUR | New cars, leased vehicles, financed or higher-value cars |
| SF-Klasse | No downgrade for partial-cover claims | Downgrade after at-fault claims |
Rule of thumb for 2026
If your car is worth roughly less than 8,000 EUR or is older than about 5 years, partial cover usually suffices. For electric vehicles a repair can exceed the book value, so full cover often makes sense even for older EVs.
Using your special cancellation right
If your premium rises without any improvement in coverage, you do not have to wait until the end of the year. Section 40 VVG (Versicherungsvertragsgesetz) gives you a special cancellation right.
When you can cancel early
30 November deadline, with one caveat
If your insurance year follows the calendar year (the common case), your regular cancellation must reach the insurer by 30 November; the new policy then starts on 1 January. If your contract started mid-year a different date applies; you will find it in your policy document.
Cancellation button and withdrawal button: do not confuse them
You may have read that from 19 June 2026 a cancellation button becomes mandatory. That statement is only half-correct. Two different legal buttons exist, and they govern different things.
- Cancellation button (§ 312k BGB): mandatory since 1 July 2022 for all ongoing online contracts such as insurance, telecoms, or fitness clubs. Your insurer already has to offer it.
- Withdrawal button (§ 356a BGB): arrives on 19 June 2026. It governs how you exercise the existing 14-day withdrawal right on newly signed distance contracts, not the special cancellation right. For cancellation after a premium increase, § 40 VVG continues to apply.
Sources: § 312k BGB and Verbraucherzentrale.
Step by step: how to save on car insurance
Check your renewal letter
Compare the new premium with last year's. If it has risen, identify the reason: new type class, new regional class, downgrade, or tariff adjustment?
Compare offers
Use a car insurance comparison and look at several providers, not only your current one.
Check the coverage details
Look beyond the price. Workshop restrictions, deductible, and scope of cover matter. The cheapest tariff is not automatically the right one.
Switch in time
Submit your cancellation by 30 November (or your individual deadline). The new policy then starts seamlessly.
Seven levers for a lower premium
You cannot change your location or vehicle model for insurance reasons alone. But you do have some adjustments available. How much each saves varies by insurer, which is why comparing pays off.
Pay annually rather than monthly
A single annual payment is cheaper than twelve instalments for most tariffs.
Higher deductible
If you pay a larger share yourself in a claim, your ongoing premium falls.
Workshop restriction
Agreeing to use a partner workshop brings a discount on your comprehensive premium.
Telematics tariff
An app measures your driving behaviour. Careful drivers are often rewarded with a discount. More on telematics.
Declare your mileage honestly
Fewer kilometres per year usually mean a lower premium.
Declare a garage parking space
Parking in a garage rather than on the street is viewed positively by many insurers.
Transfer your SF-Klasse
Have claim-free years from abroad or from a parent's policy credited wherever possible.
Frequently asked questions about car insurance 2026
Will car insurance get more expensive in Germany in 2026?
Why are car insurance premiums rising?
Partial or comprehensive cover: which fits my car?
What is the eVB number and where do I get one?
When can I cancel my car insurance early?
Is switching car insurance in 2026 worth it?
Cancellation button or withdrawal button: what applies in 2026?
Conclusion: staying active pays off
Premiums are rising further in 2026, but you are not powerless. Especially as a newcomer to Germany, a clear plan helps:
- Read your renewal letter and spot hidden increases
- Have claim-free years from abroad credited
- Use the special cancellation right under § 40 VVG when your premium rises
- Compare once a year, because type and regional classes change annually
The simplest starting point is a car insurance comparison for your vehicle. It shows what suits your situation, rather than dealing in broad percentage figures.