The German Insurance Association (GDV) will be implementing changes to car insurance classifications in 2025. These changes will affect over twelve million vehicle owners, resulting in varying financial implications.
The GDV's classification system evaluates around 33,000 car models based on claims data from the previous three years. Factors such as the frequency and cost of claims determine whether a vehicle is assigned a higher or lower type class. Lower type classes generally correspond to cheaper insurance premiums, while higher classes indicate increased costs.
In 2025, approximately 5.1 million policyholders will see their vehicles move to a more favorable classification, while around 7.1 million will experience the opposite effect. The changes in type classes will directly impact the annual insurance costs for car owners.
The GDV's classification system aims to reflect the risk associated with different vehicle models, with high-performance luxury cars and SUVs typically attracting higher type classes due to their potential for causing significant damage and incurring high repair costs. On the other hand, older models and smaller vehicles often benefit from lower classifications, resulting in more affordable insurance premiums.
The classification process is based on statistical analysis and historical claims data, with the GDV compiling information on vehicle performance in accidents to assess the frequency and costs of claims. This data-driven approach ensures that the classification system remains relevant and reflective of current trends in vehicle safety and accident rates.
The adjustments made to insurance classifications each year serve as a critical touchpoint for vehicle owners, providing insights into potential changes in insurance costs and the factors that contribute to those changes. It is important for car owners to stay informed about their vehicle's classification and the potential financial impacts that may arise.