A recent survey by Verivox on 16 February reveals that German motor insurance premiums continued their upward trajectory in 2025. Comprehensive policies experienced the steepest increases, while some drivers faced hidden cost hikes due to altered policy conditions rather than overt price rises. Rising parts, labour, and repair costs remain the primary drivers behind these persistent increases, even as the GDV (Gesamtverband der Deutschen Versicherungswirtschaft) signals a recovery in profitability for the non-life insurance sector.
Key Findings from the Verivox Survey
The Verivox survey indicates that the majority of German drivers received higher renewal quotes for 2025, often without filing any claims. Both liability and comprehensive cover experienced upward pressure, though the degree of increase varied across regions, vehicle types, and individual risk profiles. Importantly, the data suggests that these are not isolated spikes but part of a sustained repricing trend.
| Policy Type | Average Premium Change | Notes |
|---|---|---|
| Comprehensive | +6–8% | Driven by costly electronics, glass, and repair claims |
| Liability | +2–4% | Moderate rise, influenced by regional risk factors |
| Hidden adjustments | Variable | Includes higher deductibles, narrower networks, and mileage limits |
The survey also highlights that some drivers faced effective cost increases through policy modifications, such as reduced extras or restricted workshop networks, rather than headline premium hikes. This underscores the importance of scrutinising renewal terms line by line rather than focusing solely on the quoted price.
What is Driving Higher Motor Premiums?
Several factors continue to elevate claims costs in Germany:
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Parts inflation and complex repair requirements for modern vehicles, including ADAS calibration and battery checks.
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Limited workshop capacity combined with longer repair times.
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Rising costs of electronics, glass, and storm-related damage claims.
Consequently, insurers retain pricing power as claim severity remains elevated.
Implications for Insurers and Drivers
Sustained premium strength supports GDV forecasts for improved non-life profitability in 2025. Provided claims frequency remains stable and severity normalises, insurers could see stronger margins, which may translate into higher returns for investors. Drivers, meanwhile, are advised to shop around, review coverage in detail, and consider adjusting deductibles or opting for telematics-based or limited-mileage discounts to offset market increases.
Practical steps include:
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Comparing multiple quotes and coverage benefits.
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Opting for annual payments where possible.
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Ensuring all drivers, garage security features, and workshop networks are correctly declared.
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Bundling vehicles or leveraging telematics for safer routing and lower premiums.
Conclusion
The Verivox survey confirms that German motor insurance costs rose again in 2025, particularly for comprehensive cover. While headline premiums matter, hidden policy adjustments can also increase effective costs. For insurers, continued pricing discipline supports profitability recovery; for drivers, careful comparison and policy optimisation are essential to mitigate rising expenses. Observers should watch forthcoming rate changes, claims trends, and weather-related losses to gauge whether margin improvements are sustainable.
FAQs
Why are premiums rising? Parts, repairs, ADAS calibration, and weather events continue to drive costs.
What should I do if my premium rises without a claim? Compare quotes, review coverage, adjust deductibles cautiously, and check for telematics discounts.
How does this affect insurers? Strong pricing supports GDV’s non-life profitability recovery in 2025, provided claims trends remain stable.