Motor vehicle insurance: Prices continue to rise, but savings await!

Motor vehicle insurance: Prices continue to rise, but savings await!

Car insurance prices will rise for the third year in a row in 2025, various sources report. Compared to the previous year, drivers can expect a price increase of 16 percent in April 2025, while the increase compared to April 2022 even amounts to 50 percent. This development is a painful issue for many vehicle owners, which is caused by the ongoing price dynamics in the insurance industry.

The Verivox motor vehicle insurance index, which was created in cooperation with Professor Wolfgang Bischof from the Augsburg University of Technology, shows that the average costs for fully comprehensive insurance rose by 17 percent in April 2025 compared to the previous year. Comprehensive insurance has become 14 percent more expensive, while liability insurance has increased by 15 percent.
These price increases are due to high costs for spare parts and workshop repairs, which drove car insurers into deficits in 2023.

Price developments and savings potential

Aljoscha Ziller from Verivox explained that the previous contribution adjustments were not enough to return to profitability. He indicates that further price increases are expected in order to stabilize the economic situation of insurers. Nevertheless, the sharpest price increases in recent years appear to be over. The increase was 24 percent in October 2024, which makes the latest developments all the more remarkable.

However, there is positive news: some providers in the market have started to make a profit and are actively trying to attract new customers through adjusted pricing. Verivox even sees savings potential of up to 30 percent for consumers who choose cheaper vehicle insurance in the lower price segment. Particularly with partially comprehensive insurance, drivers can save up to 32 percent, while liability offers savings of up to 31 percent and fully comprehensive insurance offers savings of up to 29 percent.

Market feedback and outlook

The increased competition in the market suggests that competition for customers could also lead to cheaper premiums. Ziller emphasizes that motor vehicle insurance has experienced historically unprecedented premium dynamics in recent years and that a possible trend reversal could be imminent for consumers willing to switch.

Overall, it remains to be seen how the situation in the motor vehicle insurance industry will develop. High consumer sensitivity combined with current competition could bring some potential relief for drivers in the near future, despite previous price increases.

You can find more details on the current situation of motor vehicle insurance in the comprehensive analyzes from Cash Online and star.