Germany’s autumn insurance season has opened with an unexpected twist for drivers in Germany and neighbouring Austria: after years of hefty increases, new motor‑insurance tariffs are, on average, only about two percent higher than a year ago — and bargain offers are even cheaper. That gives millions of motorists a real chance to save at contract renewal, but rising repair bills and higher cover costs for some e‑cars keep pressure on premiums.
Market snapshot: tariffs, savings and who benefits
Analysis by comparison portal Verivox shows that, for contracts starting 1 January 2027, average Kfz‑insurance prices across liability, partial and full cover sit roughly 2% above October 2025 levels; in the cheap segment prices are about 2% lower than a year ago. Verivox also calculates that policyholders can save up to 36% by switching from a mid‑range to a low‑cost tariff.
The return of aggressive pricing follows three years of market‑wide increases. Insurers now pursue different strategies: some are still signalling further hikes, while others use low introductory prices to win new customers — a dynamic Verivox’s managing director Aljoscha Ziller described as the resumption of a genuine "preiskampf" (price war).
Price drivers: repair bills and EV cover
That competitive picture, however, masks persistent cost pressures. The industry association (GDV) warns that average repair costs in Germany have jumped strongly in the last decade — insurers report the typical repair now costs about €4,600, roughly 70% more than ten years ago — and total Kfz‑claims spending is set to rise into the tens of billions. GDV chief Jörg Asmussen told press agencies these rising parts and workshop bills are the central driver behind past premium increases.
