Car Insurance Premiums 2026:Why They Rise and How to Save in Germany
Premiums are climbing because claims are getting more expensive. We explain what the GDV figures actually show, when you have a special cancellation right, and which levers genuinely lower your cost.
By the checkeverything.de editorial team · Updated 25 July 2026
In short: Car insurance in Germany is getting more expensive in 2026 because insurers' claim costs have risen sharply – weather damage alone reached around 1.3 billion euros in 2024 according to the GDV. A genuine premium increase by your insurer gives you a one-month special cancellation right under § 40 VVG. Drivers who compare tariffs every year often save several hundred euros, the Verbraucherzentrale reports.
Key Facts at a Glance
- 1.The increases are driven by higher repair and claim costs, documented in the GDV claims statistics for 2024.
- 2.A higher type or regional class also triggers the special cancellation right once your premium rises because of it – unlike a no-claims downgrade after a claim.
- 3.A genuine premium increase gives you a special cancellation right under § 40 VVG: one month from receiving the notification.
- 4.The cancellation deadline for a switch on 1 January is 30 November.
- 5.A higher deductible, workshop binding, telematics and an annual comparison meaningfully lower the premium.
Table of Contents
1. Car Insurance Premium Overview 2026
German car insurance is again under pressure in 2026. The reason is not the greed of individual providers but claim costs: according to the GDV, motor insurers lost almost five billion euros over two years because every repair and every claim got more expensive. That gap is now being closed through premiums.
How much more expensive, exactly? For 2025 the GDV calculated roughly 14 percent higher motor premium income; for 2026 the association expects a further increase of 5.2 percent across property and casualty insurance. The Verivox car insurance index, covered by ARD Marktcheck and BR in autumn 2025, already showed around 7 percent higher prices for cheap tariffs and 8 percent for fully comprehensive cover. How hard it hits you depends on your vehicle, your location, and your no-claims class – the binding figure is in your premium notification.
| What the premium reacts to | Effect | Special cancellation right? |
|---|---|---|
| Genuine premium adjustment by insurer | Higher base premium | Yes (§ 40 VVG) |
| Type class change | Vehicle model rated higher | Yes, if the premium rises |
| Regional class change | Your area rated higher | Yes, if the premium rises |
| No-claims downgrade after a claim | Worse no-claims class | No |
Note: The steepest jumps usually hit new customers and switchers whose tariff is calculated entirely on current pricing. Long-standing customers with a high no-claims class often get off more lightly – which is exactly why comparing before every renewal pays off.
2. Why Car Insurance Premiums Are Rising
There is a simple logic behind the increases: insurers pay more for claims than they did just a few years ago. Four factors work together here.
Higher workshop costs
A shortage of skilled labour and expensive diagnostic equipment push up workshop hourly rates. Repairs that used to be manageable now weigh much more heavily.
Expensive parts and sensors
Modern vehicles are packed with cameras, radar sensors and assistance systems. Even a bumper with built-in sensors has to be recalibrated after replacement, which costs money.
Higher average claims
The GDV puts the average wildlife-collision claim in 2024 at 4,100 euros, up from 3,850 euros in 2023. A single glass-breakage claim averaged around 900 euros – seven percent more than the year before.
Natural hazards and storms
Storms, hail and flooding damaged around 340,000 fully insured vehicles in 2024, according to the GDV. Insurers paid roughly 1.3 billion euros for this.
Further cost drivers
- Inflation: General price rises for materials and labour
- Complex technology: More electronics require specialist knowledge
- Supply chains: Parts at times scarce and pricey
- Electric vehicles: More involved repairs, e.g. to the battery
- Staff costs: Higher wages in workshops and claims handling
- Wildlife and glass damage: High volumes burden the balance sheet
Electric cars are a special case: the battery and built-in sensors can make repairs considerably more expensive, which shows up in how individual models are rated. What 2026 brings for EVs in insurance and vehicle tax is covered in our electric car insurance guide.
4. What the GDV Claims Data Shows
Premium trends make more sense once you look at the claims side. The German Insurance Association (GDV) regularly publishes reliable figures. The values below come from the GDV balance for 2024.
| Claim type (2024) | Vehicles / cases affected | Total cost | Average |
|---|---|---|---|
| Weather damage | approx. 340,000 vehicles | approx. 1.3 bn euros | – |
| Wildlife collisions | over 276,000 | over 1.1 bn euros | 4,100 euros |
| Glass-breakage claims | approx. 2.2 million | approx. 2 bn euros | approx. 900 euros |
The trend in average claims is striking: wildlife-collision claims rose from 3,850 euros (2023) to 4,100 euros (2024), and glass-breakage claims by around seven percent. Increases like these cannot be absorbed indefinitely without higher premiums – in October 2025 the GDV put motor insurers' losses from two years at almost five billion euros.
Sources for this section: GDV press releases on weather, wildlife and glass-breakage claims 2024 (see the source list at the end of this article). Figures refer to fully insured cars or the respective stated claim type.
5. Special Cancellation Right under § 40 VVG
If your insurer raises the premium via an adjustment clause without a matching increase in coverage, you may cancel. This is governed by § 40 of the German Insurance Contract Act (VVG). Important: the cancellation must reach the insurer within one month of receiving the notification.
This also covers a worse rating: the ADAC points out that premium increases mostly happen when a vehicle moves into a higher type or regional class – and that policyholders can use the special cancellation right exactly then. So check the new ratings in your premium notification, not just the base premium. After a settled claim you additionally have a separate right to cancel; the no-claims downgrade on its own, however, does not count as a premium increase under § 40 VVG.
How to use the special cancellation right
Requirements
- Your premium rises via an adjustment clause or a new rating
- Coverage does not increase accordingly
- Also applies to type and regional class upgrades (ADAC)
Deadlines
- One month from receiving the notification
- Effective from the planned increase date
- Cancellation in text form, keep proof
Important: First take out a new policy and only then cancel, so there is no day without cover. Without valid third-party liability insurance, the vehicle may not be driven in Germany.
6. Strategies to Reduce Your 2026 Premium
Rising premiums do not mean you are powerless. These levers work, and several can be combined.
Compare every year
The single most effective lever: review your tariff each year before 30 November. According to the Verbraucherzentrale, this can save several hundred euros.
Workshop binding
Agreeing to use the insurer's partner workshop in the event of a claim often results in a cheaper premium.
Higher deductible
A higher deductible on the comprehensive cover lowers the premium. Choose an amount you could comfortably pay in a claim.
Telematics tariff
Careful drivers can save with a telematics tariff – especially useful for novice drivers facing a high entry premium.
Realistic mileage
State your actual annual mileage. Low-mileage drivers benefit from lower premiums, while a false figure can jeopardise your cover.
Annual payment
Monthly or quarterly payment often carries a surcharge. Paying annually avoids this extra cost.
7. Compare Car Insurance Now
The quickest way to escape the next increase is a no-obligation comparison. Enter your key details and see transparently which tariff suits your vehicle and location. The comparison is free and works without registration.
Note: the comparison tool connects you with our partner Tarifcheck. There are no costs for you.
Review Your Options for 2026
Compare your car insurance and find a tariff that fits your budget – transparent and independent.
For financial flexibility around your car: compare loans.
8. Frequently Asked Questions
Why is car insurance in Germany more expensive in 2026?
Higher claim costs are the main driver. The GDV reports weather-related damage of around 1.3 billion euros in 2024 across roughly 340,000 fully insured vehicles. Wildlife collisions cost over 1.1 billion euros, with the average claim rising from 3,850 euros (2023) to 4,100 euros (2024).
How much are German car insurance premiums rising in 2026?
The GDV expects premium growth of 5.2 percent in property and casualty insurance for 2026, after roughly 14 percent higher motor premium income in 2025. The Verivox car insurance index showed around 7 percent higher prices for cheap tariffs in autumn 2025, and 8 percent for fully comprehensive cover. Your exact increase is stated in the premium notification.
What are hidden premium increases?
Hidden increases often sit inside the annual premium notification: a new type class, a new regional class or a dropped discount. Important: if your premium rises because of them, the special cancellation right under § 40 VVG still applies. No cancellation right arises from a downgrade of your no-claims class after a claim.
Do I have a special cancellation right when my premium increases?
Yes. Under § 40 VVG you may cancel within one month of receiving the notification if the insurer raises the premium without a corresponding increase in coverage. According to the ADAC this also applies when the increase results from a worse type or regional class rating.
Does the special cancellation right apply to a new type or regional class?
Yes, as long as your premium rises because of it. The ADAC points out that premium increases mostly result from a higher type or regional class, and that this is exactly when the special cancellation right applies. It does not apply to a no-claims downgrade after a claim.
How much can I save by switching car insurer in Germany?
The German consumer advice centre (Verbraucherzentrale) notes that reviewing and switching your car insurance can save several hundred euros per year. Comparing is especially worthwhile before the 30 November deadline, the usual cancellation date for a switch at year-end.
By when do I have to cancel my German car insurance?
The regular cancellation deadline is 30 November for a switch effective 1 January. The cancellation must be in text form. In the event of a premium increase, the additional one-month special cancellation right under § 40 VVG also applies.
Why are new contracts often more expensive than existing ones?
New-customer tariffs reflect current calculations and claim costs, while existing customers often benefit from older premium bases and a grown no-claims class. Even so, a broad comparison pays off because individual insurers actively want to win new customers.
Which savings tips help despite rising premiums?
Effective levers are an annual tariff comparison, workshop binding, a higher deductible, telematics tariffs, a realistic mileage figure, annual instead of monthly payment, and a limited driver circle. Several of these can be combined.
Sources and further information
- →GDV: weather damage 2024 (1.3 bn euros)
- →GDV: wildlife collisions 2024 (average 4,100 euros)
- →GDV: glass-breakage claims 2024 (approx. 2 bn euros)
- →§ 40 VVG – cancellation right on a premium increase (gesetze-im-internet.de)
- →Verbraucherzentrale: review your car insurance and save
- →ADAC: special cancellation right in German car insurance
- →GDV projection: motor insurers and rising repair costs (10/2025)
- →GDV: outlook for 2026 (premium growth, property and casualty)
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