Increased car insurance costs are expected to affect around five million individuals.
The German Insurance Association (GDV) is revising the local categories for car insurance policies, which might impact premiums for about 10 million motorists. The poor performance of Offenbach and Berlin in these classifications suggests a likely increase in premiums for half of the affected motorists, while the other half may witness a decrease. Approximately 33 million car owners, however, will face no changes.
Nationwide, the evaluation of 49 districts with 4.7 million drivers shows a deterioration in their classification. Conversely, 59 districts, similar in number to those with deteriorating classifications, will benefit from improved regional categories for both extensive and partial coverage, as per the GDV's announcement.
The extent of accident-related damages in a given district determines its classification in these categories. The critical factor is where the vehicle is registered, not where the damage occurred. For insurers, the GDV's regional categories serve as one of several factors utilized in calculating premiums.
In the current study period, Offenbach emerged as the district with the worst damage records, closely followed by Berlin, both displaying accident-related damages approximately 40% higher than the average. As a result, they've been placed in the worst regional class 12 for liability insurance. Compared to large cities with over 300,000 inhabitants, Berlin has the highest total damage.
On the other hand, the Elbe-Elster district in Brandenburg boasts the best damage records, with accident-related damages 30% lower than the average, according to the GDV. Notably, many registration districts improved in Bavaria. "Here, 24 districts and almost every fourth driver achieve a more favorable class," it was reported.
Insurance companies can implement these classifications immediately for new contracts and from the next insurance year for existing contracts. However, the regional categories are not mandatory for calculating premiums.
These classifications can lead to substantial variations in insurance premiums depending on the region. For instance, liability insurance for a VW Passat driven by a 45-year-old single person with an annual mileage of 15,000 kilometers is, on average, more than half as expensive in Berlin-Mitte as in the East Frisian city of Emden. In the Berlin district of Nikolassee, insurance premiums for this model calculation are around one-third higher than in the neighboring Brandenburg town of Kleinmachnow.
After the revision, motorists in Berlin and Offenbach might see an increase in their car insurance premiums due to their poor damage records and new classifications. On the other hand, owners in the Elbe-Elster district in Brandenburg, known for its excellent damage records, could potentially benefit from lower premiums.
