New regional classes in car insurance: What does this mean for millions of drivers?

New regional classes in car insurance: What does this mean for millions of drivers?

According to a report by www.extratipp.com, the General Association of the German Insurance Industry (GDV) has published the new regional class classification. The classes are increasing for 45 districts and around 3.8 million drivers, while 31 districts and around 2.2 million drivers benefit from better regional classes.

The readjustment of the regional classes in car insurance has a direct impact on car insurance premiums in Germany. According to claims statistics from recent years, rural regions are rated better than large cities, which leads to higher or lower insurance rates.

The worst loss record for motor vehicle liability insurance continues to be in Berlin, where losses are almost 40 percent above the national average. In contrast, the Elbe-Elster district in Brandenburg has the best loss record nationwide, with losses around 30 percent lower than average.

The adjustment of the regional classes also affects comprehensive insurance, with improvements predominating. 3.7 million fully or partially insured people will be classified more favorably in the future, while around 3.3 million will have a higher classification.

It is important to note that regional classes are only one of the components that make up the level of insurance rates. In addition to the place of residence or registration, the vehicle, the kilometers driven annually and the owner themselves also play an important role in calculating the insurance costs.

The adjustment of the regional classes will potentially lead to increasing insurance costs for some drivers, while others can expect overall costs to fall in the coming year due to no-claims discounts despite a higher regional class. This underlines how complex and individual the calculation of vehicle insurance premiums is.