A new survey conducted by Verivox on 16 February 2026 has revealed that German motor insurance premiums continued to climb in 2025, with comprehensive policies experiencing the largest increases. While headline rates rose, some drivers faced hidden cost hikes due to changes in coverage, deductibles, and policy terms. Rising repair and parts costs, combined with increasingly complex vehicle technology, are maintaining upward pressure on premiums, even as the insurance sector’s profitability shows signs of recovery.
Table of Contents
Key Findings from the Verivox Survey
The Verivox survey found that a majority of policyholders received higher renewal quotes for 2025, often without making any claims. Both liability and comprehensive cover saw price increases, though the scale varied depending on the vehicle class, region, and driver risk profile. Rather than a one-off spike, the data indicates a steady repricing trend.
| Policy Type | Average Premium Increase 2025 | Notes on Cost Drivers |
|---|---|---|
| Comprehensive Cover | 6–8% | High repair costs, electronics, glass, ADAS calibration |
| Liability Cover | 2–4% | Moderate increases, mainly due to parts inflation |
| Hidden Costs | 1–3% | Higher deductibles, narrower workshop networks, caps |
Comprehensive policies bore the brunt of the increases, reflecting the expense of modern repairs and replacements. Liability premiums also rose but to a lesser degree. Additionally, some policyholders experienced effective cost hikes not reflected in headline rates—such as reduced benefits or added restrictions—highlighting the need to examine cover details carefully.
Drivers of Higher Premiums
The ongoing upward pressure stems from several factors:
Parts inflation and supply chain constraints – Modern vehicles require more expensive components.
Complex repairs – Advanced driver-assistance systems (ADAS), battery checks, and electronics increase labour costs and repair times.
Weather events – Storms and natural damage events add unpredictable losses.
Policy adjustments, such as higher deductibles or limitations on workshops, can raise effective costs even if the headline premium appears stable. Drivers are advised to review coverage limits, glass and wildlife clauses, courtesy car provisions, and cancellation terms.
Implications for Insurers
Persistent rate strength supports profitability recovery for German non-life insurers, particularly motor insurers under the GDV framework. If claims frequency remains contained and claim severity stabilises, combined ratios are expected to improve in 2025. Investors are advised to monitor rate changes, claims trends, weather losses, and parts cost developments through Q1–Q2 updates.
Practical Advice for Drivers
To manage rising costs, drivers should:
Compare quotes across multiple insurers.
Consider annual payments and telematics or low-mileage discounts.
Review workshop networks, glass coverage, and deductibles.
Bundle vehicles or centralise fleet claims reporting for cost efficiency.
Conclusion
The latest Verivox survey confirms that German motor insurance prices rose again in 2025, with comprehensive cover leading increases. Rising repair costs, parts inflation, and complex vehicle systems remain the key drivers. While the sector benefits from stronger pricing and improving profitability, consumers must carefully scrutinise policy terms and consider strategic adjustments to mitigate rising premiums.