Motor vehicle insurance 2026: Prices are rising despite low rates!

Motor vehicle insurance 2026: Prices are rising despite low rates!

In Germany, the costs of vehicle insurance continue to rise. In the coming year 2026, drivers can expect an average price increase of around 7 percent in the affordable price segment, according to current reports Heise. The situation is worrying, especially given the strong inflation in recent years, which is higher than general inflation.

The prices for the various types of insurance have also increased: fully comprehensive insurance has increased by 8 percent, partially comprehensive insurance by 6 percent and liability insurance by 5 percent. A year ago, price increases were as high as 25 percent, which illustrates the dynamics of the market. Aljoscha Ziller, Managing Director of Verivox, attributes the price increases to sharp increases in repair and spare parts costs. These circumstances make fully comprehensive insurance particularly problematic for many providers.

Volatility and market conditions

The vehicle insurance market remains volatile. Some insurers have returned to profits and are offering lower prices, while others have been forced to increase their premiums. These price differences are significant; In the best case, the differences between medium and cheap tariffs can be up to 52 percent. Such pricing creates high savings potential for insured people willing to change, reports Verivox.

To get an impression of market developments, an evaluation of around 400 comprehensive insurance tariffs from 70 motor vehicle insurers shows that insurance patterns continue to change. Comparing tariffs is becoming more attractive again for consumers, especially since the general conditions in this cycle bring with them many challenges. The vehicles that are fully insured are on average 6.5 years old, while vehicles with liability insurance are on average 17.8 years old.

Trend towards greater fluctuations

Car insurance premiums have increased significantly over the past three years. In comparison, in April 2025 alone there was a price increase of around 16 percent compared to the previous year. These developments indicate a cyclical course in the insurance market, where first phases of losses and then consolidation and more intense price competition can be observed. Ziller describes the recent developments as “historically unprecedented” in terms of contribution dynamics.

In summary, car insurance remains a complex issue. Consumers should compare the offers carefully in order to benefit from the sometimes considerable price differences and to protect themselves against further inflation in the repair sector. Although the pricing policies of individual insurers vary, the biggest challenges currently appear to be behind us. Nevertheless, the future of the market remains exciting and challenging.