- The cost of car insurance might increase for approximately 4.7 million policyholders.
Approximately 4.7 million automobile drivers in Germany are anticipated to encounter increased insurance premiums due to the introduction of new regional categories, as per the German Insurance Association (GDV). On the flip side, around 4.7 million drivers might witness a decrease in their premiums. However, around 33 million car owners might remain unaffected.
The more severe the damages incurred, the worse the rating
The recently introduced regional categories for motor vehicle liability, comprehensive, and partial coverage insurance by GDV have led to this situation. The more significant the damage sustained in a specific region, the poorer its rating in the respective categories. The crucial factor is not where the damage occurred but where the vehicle is registered.
For insurers, the GDV's regional categories serve as one of various pricing features used to determine premiums.
Offenbach and Berlin top the list of damages
The study period's district with the highest damage rate was the city of Offenbach, followed closely by Berlin. "In both cities, damages are almost 40% above the average," GDV reported. As a result, they fit into the worst regional category 12 for liability insurance. Compared to major cities with over 300,000 inhabitants, Berlin has the highest total damage sum.
On the contrary, the Elbe-Elster district in Brandenburg boasts the best damage record, with damages approximately 30% lower than the average. Interestingly, numerous registration districts in Bavaria have improved. "Here, 24 districts and almost every fourth car driver enjoy a more favorable category," it was noted.
Across the nation, the ratings for 49 districts with approximately 4.7 million drivers have worsened. On the positive side, 59 districts and around 4.7 million drivers will benefit from improved regional categories.
Insurance companies can now utilize the ratings
Insurance companies can now implement the ratings for new contracts and existing contracts from the upcoming insurance year. However, the regional categories are not binding for the calculation of premiums.
They can result in substantial variations in insurance premiums depending on the region. For instance, the comparison portal Verivox estimated that in Berlin-Mitte, the 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 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.
The introduction of regional categories for insurance of motor vehicles by GDV has led to significant variations in premiums, with Berlin and Offenbach having the highest damage rates and consequently, being categorized as having poorer insurance ratings. Conversely, districts like Elbe-Elster in Brandenburg and numerous registration districts in Bavaria have improved ratings, potentially leading to lower insurance premiums.
