- Vehicular transportation: revised methodology for estimating coverage for over 9 million policyholders
Approximately 9.4 million motorists in Germany are bracing for modifications in their insurance costs due to revised regional categories. About half of these drivers might experience an increase in their premiums, while the other half could potentially enjoy a decrease, according to the German Insurance Association (GDV). However, around 33 million car owners might not witness any changes.
The worse the damage, the poorer the rating
This transformation stems from the introduction of new regional categories for motor vehicle liability, comprehensive, and partial coverage insurance, as revealed by the GDV. The more substantial the damage in a particular region, the worse its positioning within these categories. The critical factor here is the district in which the vehicle is registered, not the location of the damage.
Insurers utilize these GDV regional categories as one of several pricing components to determine premiums.
Offenbach and Berlin struggle the most
The district with the most problematic damage history in the current investigation period is Offenbach, closely followed by Berlin. "In both cities, damages are nearly 40% above the average," the GDV declared. Consequently, they rank among the worst regional class 12 for liability insurance. Compared to large cities with over 300,000 inhabitants, Berlin has the most substantial damage payouts.
Meanwhile, the Elbe-Elster district in Brandenburg boasts the best damage record, with damages approximately 30% less than the average. Significantly, numerous registration districts in Bavaria showed improvement. "Here, 24 districts and nearly every fourth driver benefit from a more favorable class," it was stated.
Across the nation, the ratings for 49 districts with approximately 4.7 million motorists will worsen. Conversely, 59 districts and around 4.7 million motorists will benefit from improved regional categories in the future.
Insurance companies can now employ these ratings
Insurance providers can now implement these ratings for new policies and existing policies commencing from the upcoming insurance year. Nevertheless, these regional categories do not serve as binding guidelines for calculating premiums.
These categories can result in substantial variations in insurance premiums depending on the region. For instance, as per the comparison portal Verivox, liability insurance for a VW Passat with a 45-year-old single driver boasting an annual mileage of 15,000 kilometers is on average more than half cheaper in East Frisian city of Emden compared to Berlin-Mitte.
In the Berlin district of Nikolassee, insurance premiums in this model calculation are roughly one-third more expensive than in the adjacent Brandenburg town of Kleinmachnow.
GVV plays a significant role in determining insurance premiums based on regional categories.The revised regional categories, as outlined by GVV, could lead to substantial variations in insurance premiums across different districts.
