Motor vehicle insurance 2026: Price increase of up to 8% expected!

Motor vehicle insurance 2026: Price increase of up to 8% expected!

In 2026, drivers in Germany will have to expect significantly higher costs for their vehicle insurance. Loud FNP The average premiums for all types of insurance increased by 7% compared to the previous year. This means that fully comprehensive insurance in particular has the highest price increase, with an increase of 8%, followed by partially comprehensive insurance, which becomes more expensive by 6%, and liability insurance, whose premiums increase by 5%.

The reason for these price increases is the continually increasing costs for repairs and spare parts. In 2025, the inflation rate was already 26%, and industry experts report that average damage is expected to be 5-6% more expensive. The South German highlights that many insurers have recently recorded high losses, which makes the current price adjustment necessary to at least compensate for inflation.

Price adjustments and savings opportunities

Drivers are currently receiving mail from their insurers with information about upcoming premium increases. Tens of thousands of insured people have until November 30th to respond to these letters and, if necessary, terminate their contracts. Interestingly, policyholders can realize significant savings by switching to a cheaper policy. It is reported that the price difference between mid-range and cheaper plans can be up to 52%. An example makes this clear: A 45-year-old driver of a VW Golf VIII could save 836 euros on fully comprehensive insurance by switching to another provider.

Another measure to reduce costs could be increasing the deductible or using telematics tariffs that are linked to driving behavior. Limiting the number of drivers can also be a way to lower premiums. Loud Verivox Some insurers are also offering competitive prices despite the general price increases as their profitability has improved.

Market developments and future outlook

The current market situation remains volatile as future price increases for individual insured persons cannot be ruled out. There are also signs that the number of motor vehicle insurers could decrease in the medium term. Experts from E+S Rück see prices at a risk-adequate level, but the reinsurers' pricing power could soon end. They also emphasize that car policies are crucial for customer loyalty, which leads to tough competition.

Motor vehicle insurance prices have experienced a high price increase in recent years, which has been around 30% overall since 2021. The adjustments for 2026 therefore represent just another phase in the recurring cycle of price adjustments in the insurance industry. The market is faced with the challenge of both taking into account the needs of the insured and ensuring its own financial stability.