Car Insurance Germany 2026: Why Premiums Are Rising Now
Most drivers face higher premiums in 2026 — industry estimates for car insurance run between 5% and 15%. Here is what is behind the increase, when you can use the special termination right, and how to switch to a cheaper tariff in minutes.
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What is going up — and how much?
The GDV expects a 5.2% premium increase for the entire German property and casualty sector in 2026. There is no separate figure just for car insurance — industry and broker estimates therefore range from 5% to 15%, with the midpoint around 8% to 10%.
| Driver | Current value |
|---|---|
| Spare parts since 2015 | +80% (GDV) |
| Consumer price index (reference) | +30% |
| Mechanic hourly rate | ~€202 (+8% YoY) |
| Paint hourly rate | ~€220 (+8% YoY) |
| Type-class reform 2026 affects | 12+ million drivers (GDV) |
Source: GDV media information 2026, workshop-rate analysis August 2024 – August 2025.
Special termination right under § 40 VVG
If your insurer raises the premium, you get a special right of termination — even outside the usual 30 November window. The increase must be communicated in writing, either in the invoice or in a separate notice.
1. Check the notice
Compare the new invoice with last year's. Hidden increases (type-class changes) also trigger the right.
2. Terminate within 1 month
Deadline starts the day you receive the notice. Email or registered letter — the insurer must have it within four weeks.
3. Sign the new contract
Your no-claims class moves to the new insurer automatically. Match the excess on comprehensive cover.
For switch guidance in English see our car insurance comparison or the broader cheap car insurance guide.
What to check when switching
- 1.Total coverage, not just price: excess, workshop binding, marten-bite consequential damage, animal damage beyond rodents — the small print matters in a claim.
- 2.Protect your no-claims class: it transfers with you. Make sure the new contract starts at the right date so there is no gap in cover.
- 3.Telematics only if it fits: young or defensive drivers can save up to 30%. Sporty or night drivers usually do not benefit.
- 4.Check insurance class changes: shifts in type classes can drive the price up or down significantly.
Planning a new car? Combine the switch with a car loan comparison. If you are going electric, do not miss the BAFA EV subsidy 2026.
Frequently asked questions
Premium increase notice? Switch now
Run a comparison and save up to €850 per year — Check24 maximum, your actual saving depends on your profile.