Drivers in distress: car insurance increases by up to 50%!

Drivers in distress: car insurance increases by up to 50%!

In 2025, car insurance prices will rise dramatically. In April alone, costs rose by 16 percent year-on-year, which corresponds to an increase of 50 percent compared to April 2022 stern.de reported. These developments particularly affect fully comprehensive insurance, which has become on average 17 percent more expensive, while partially comprehensive insurance has increased by 14 percent and liability insurance by 15 percent.

Aljoscha Ziller from Verivox describes the current contribution dynamic as historically unprecedented. The reasons for these price increases are diverse. Car insurers were already struggling with rising costs for spare parts and workshop repairs in 2023, which led to deficits. In order to compensate for losses, further price increases are to be expected, but Ziller gives the all-clear: the phase of the strongest premium increases is over.

Changing season and forecasts

The changing season for motor vehicle insurance has now begun, and the premiums are on average 24 percent more expensive than last year Verivox. Fully comprehensive insurance shows the largest increases with an increase of 25 percent. In the last few months, car insurance prices have already been around 20 percent higher than the previous year, which shows that the trend is moving in the same direction.

In addition, experts report that the inflation rate for spare parts and workshop costs exceeds general inflation. Price increases in the insurance sector could continue through 2026, with the cheapest rates up 26 percent but still 28 percent below the mid-price segment.

Savings potential on vehicle insurance

Despite the high costs, there is potential for savings: Verivox sees the possibility of saving up to 30 percent on cheap car insurance compared to the mid-price segment. In order to win customers, some insurers use targeted price calculations, while the first providers are already making profits again.

The price developments are evaluated as part of the motor vehicle insurance index, which is created in collaboration with Professor Wolfgang Bischof from the Augsburg University of Technology. This is based on anonymized user calculations for the periods from April 1st to 30th, 2025 and previous years.

Overall, this development is a clear sign to consumers that they should pay more attention to the pricing of their vehicle insurance in the coming months. With further increases predicted, switching insurance lines could be beneficial both financially and in terms of possible benefits.