The car insurance classifications in Germany will undergo significant changes in 2025, affecting over twelve million vehicle owners.

Changes in Car Insurance Classifications

These changes are determined by the German Insurance Association (GDV) based on claims data analysis and aim to align insurance costs with the risk associated with different vehicle models.

While some drivers will see a reduction in their insurance premiums, others may face increased costs.

Classification Process and Implications

The GDV classifies approximately 33,000 car models into various type classes based on their claims history from 2021 to 2023.

This classification is crucial for determining insurance premiums, as vehicles with fewer claims and lower repair costs are assigned to lower type classes, resulting in cheaper insurance rates.

The adjustments for 2025 will benefit around 5.1 million policyholders with a more favorable classification, while approximately 7.1 million will experience higher costs.

The changes will have significant implications for car owners in Germany, with some models seeing lower premiums and others facing potential increases.

Factors Considered in Classification

The classification process is based on a comprehensive analysis of claims data, considering the frequency and cost of claims associated with each vehicle model.

The GDV also takes into account the demographics of drivers, with vehicles popular among younger or novice drivers potentially receiving higher classifications due to the increased risk associated with these groups.

Future Influences on Insurance Classifications

The ongoing evolution of vehicle technology and driver behavior will continue to influence future insurance classifications and premiums.

It is important for drivers to stay informed about their vehicle's classification and understand the potential financial implications.