Car insurance more expensive than ever: 16% more costs in comparison!

Car insurance more expensive than ever: 16% more costs in comparison!

The cost of car insurance has reached historic levels. According to a current analysis by the comparison portal Verivox, prices rose by an average of 16 percent in April 2025 compared to the previous year. This development brings with it considerable financial burdens for vehicle owners.

Compared to April 2022, spending on vehicle insurance has even increased by a remarkable 50 percent. Fully comprehensive insurance in particular shows an alarming picture, as in April 2025 it was on average 17 percent more expensive than in the previous year. Partial comprehensive insurance and liability insurance are also affected, which have become 14 and 15 percent more expensive. Aljoscha Ziller from Verivox describes this contribution dynamic as historically unprecedented.

Causes of price increases

The drastic increases are primarily due to increased costs for spare parts and workshop repairs. In 2023, many auto insurers fell into deficit, forcing them to make significant adjustments to their premiums in order to return to profitability. The first insurance companies have now made profits again and are using adjusted price calculations to attract customers.

In the current switching season, drivers have to expect high premiums. The price increases are particularly noticeable in the affordable price segment: fully comprehensive insurance has increased by 16 percent, while partial comprehensive insurance has become 11 percent more expensive and liability has increased by 12 percent. This is considered necessary to offset the inflation-related increases in repair costs and the increased loss rates.

Savings potential for new customers

Despite the high costs, there are attractive savings opportunities for new customers. Compared to the mid-price segment, you can save up to 31 percent. Verivox estimates the savings potential with cheaper vehicle insurance to be up to 30 percent on average. The difference between the medium and low price segment for insurance changers is on average 27 percent.

The calculation of the motor vehicle insurance index, which determines prices and trends, is carried out in collaboration with Professor Wolfgang Bischof from the Augsburg University of Technology. The underlying statistical procedure ensures that the real price development is reliably recorded. The analysis is based on anonymized user calculations from Verivox for the months of April 2025, 2024 and 2022 as well as for October 2022.

In addition, in the current situation, attention is drawn to possible rising fuel prices, which could further increase the financial burden for drivers. The need to compare offers and, if necessary, change is therefore all the more urgent for many vehicle owners.

For more information on car insurance price trends, you can view the reports on Mercury and Verivox see.