Car insurance premiums could rise by as much as 20 percent next year, depending on where a driver lives, according to a press release by the German Automobile Association (ADAC). Â
Every year, the German Insurance Association (GDV) carries out risk assessments across roughly 410 local registration districts in Germany, which can result in significant changes to the overall cost of insurance premiums.
The update affects both liability (Haftpflicht) and comprehensive (Kasko) cover.
Where will premiums rise?
Several regions with historically high accident rates and damage claims will see their regional classes increase next year, meaning drivers there are likely to pay more for car insurance.
An example is the Thuringian city of Jena, where around 40,000 drivers can expect higher premiums due to a worse regional classification.
Overall, in Thuringia, around 70,000 drivers who hold full or partial comprehensive insurance will face price increases linked to less favourable regional classes, according to the GDV.
Large urban centres tend to have the worst risk profiles and therefore higher premiums.
Offenbach, near Frankfurt, holds the dubious honour of being Germany’s “riskiest” district, with claims nearly 40 percent above the national average.
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Berlin follows closely with very high accident and damage numbers. Several cities in the Ruhr region as well as Hamburg and Munich also report high damage rates, placing them among the most expensive areas for car insurance.
The ADAC, Germany's largest motoring organisation, offers drivers a complete list of changes to regional classes.
The amount of premium increase differs widely depending on the insurer and vehicle type. The GDV and ADAC both warn that for some drivers, premiums could rise significantly if their district moves up into a higher risk class.
In more affected areas, premiums could increase by as much as 20 percent or more, based on historical claims evaluations.
Where might premiums fall?
The news isn’t all bad for drivers in Germany. Many areas, particularly in more rural and less densely populated regions, are seeing improvements in their regional class ratings, resulting in potential premium reductions in 2026.
The Elbe-Elster district in Brandenburg stands out with the best claims record nationwide, boasting damage costs about 30 percent below the national average.
Drivers registered here and in other districts throughout Brandenburg, Schleswig-Holstein, Lower Saxony, Mecklenburg-Western Pomerania, and Rhineland-Palatinate are among those likely to benefit from lower premiums.
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In Bavaria, 24 districts have improved their ratings, offering some drivers a welcome reprieve from rising insurance costs.
Lower regional classes mean drivers in these areas might see a noticeable drop in their car insurance contributions, though the exact amounts will depend on individual contracts and coverage levels.
Regional classes
Regional classes (Regionalklassen) are a way insurance companies categorize drivers based on the risks associated with the area in which their vehicle is registered – not where they actually drive or have accidents.
Your vehicle’s registration location determines your regional class, which reflects how often insurance companies have had to pay out claims in that area in recent years.
These classes are calculated annually by the GDV and serve as a guide that insurers use in determining how much your car insurance premium will be. While insurers are not strictly bound to use these classes, most adopt them as a reliable way to estimate risk.
The changes are based on the damage and accident history in each district, including factors like the frequency of claims, the severity of damages, and the number of accidents involving wild animals or weather-related incidents.
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Areas with above-average damage costs and frequent accidents receive higher (worse) regional classifications, leading to higher premiums for drivers registered there. Conversely, regions with fewer or less costly claims have lower regional classes, which can help reduce premiums.
What else should drivers know?
Driving history, vehicle type, annual mileage, and coverage options also play critical roles in determining the final cost.
The GDV recalculates and publishes the regional classes yearly, based on the most recent damage and accident data from all insurers. Insurance companies may apply the new regional classifications immediately for new contracts or at policy renewal for existing customers.
The law in Germany states that your car needs to be registered at your primary location.
Anecdotally, this seems to be one area where Germans allow themselves a degree of latitude when it comes to following the rules, perhaps indicating how different premiums can be between neighbouring districts.
It’s not for nothing that so many cars in Berlin seem to have numberplates beginning with LDS, MOL, and TF, for example (Landkreis Dahme-Spreewald, Märkisch-Oderland, Teltow-Fläming, all districts in Brandenburg)
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