The German Insurance Association (GDV) has recently completed a comprehensive recalculation of the claims history and regional classes for approximately 400 vehicle registration districts in Germany. This annual evaluation is essential for determining the risk profile of each district, which in turn affects car insurance premiums for drivers residing there.
According to GDV CEO Jörg Asmussen, the latest assessment will impact over 10 million drivers across the country. Specifically, 48 districts, covering around 5 million drivers, have been upgraded to higher regional classes, which typically signals a higher risk and can influence insurance premiums. At the same time, 51 districts, encompassing approximately 5.3 million drivers, have been downgraded to lower regional classes, offering potential savings on insurance costs. For the remaining 314 districts, roughly 32.1 million policyholders, the regional classes remain unchanged, maintaining the status quo for the vast majority of German motorists.
This wide-ranging update highlights how regional differences in accident and claims history directly impact insurance classifications and, indirectly, premiums, emphasizing the importance of location in car insurance calculations.
The recalculated data reveal a notable geographic pattern. Higher regional classes are most prevalent in Hesse and North Rhine-Westphalia, where almost one in four drivers is being upgraded to a higher risk category. Urban centers, in particular, tend to see elevated classes due to higher accident rates, thefts, and repair costs. Offenbach stands out as having the worst claims record, closely followed by Berlin, where damages are nearly 40% above the national average. Such high claims frequencies naturally translate to elevated regional classes, which insurers use as one factor in determining premiums.
In contrast, certain regions continue to maintain relatively favorable claims records. Brandenburg, Schleswig-Holstein, Lower Saxony, and Mecklenburg-Western Pomerania are consistently ranked among the safer districts, reflecting fewer accidents or less costly claims. Within these areas, Elbe-Elster in Brandenburg is notable for its exceptionally low claims profile, with damages approximately 30% below the national average.
The comparison portal Verivox calculates that, depending on where you live, there can be differences of hundreds of euros per year in car insurance premiums. According to a model calculation, a 45-year-old Berliner pays 58 percent or €464 more for comprehensive insurance for his VW Passat than someone in Münster. Partial coverage is also 50 percent (€233) more expensive in Berlin, and liability insurance is 29 percent (€103) more expensive.
Significant differences in premiums are not only evident between different cities, but sometimes also just outside the city limits. For example, a driver in Berlin-Buckow pays €425 more for comprehensive insurance “than his twin in Schönefeld in Brandenburg, just outside the city limits,” explained the comparison portal. Although only one street separates the two places of residence, the different regional classifications result in a price difference of 51 percent (€425). Partial comprehensive insurance is also 38 percent (€194) more expensive in Buckow, while liability insurance costs 42 percent (€138) more.
These disparities underscore the significant role that residential district plays in shaping a driver’s insurance profile.
Regional classes are determined annually by the GDV and serve as a tool to quantify the risk associated with a vehicle owner’s residential area. These classes consider comprehensive data on claims, including accidents, thefts, storm damage, vehicle fires, glass damage, wildlife accidents, and natural hazard claims. A critical aspect of this system is that the location of the vehicle owner, not the location where an accident occurs, determines the regional class.
Once claims data are collected, they are converted into an index value, which determines the specific class assignment. For liability insurance, there are 12 regional classes; for full coverage insurance, 9 classes exist; and partial coverage policies are divided into 16 classes. The index-based system ensures a standardized approach across all districts, allowing insurers to compare risk levels and adjust policies accordingly.
A higher regional class signals a higher likelihood of claims or costlier damages, and although this can impact premiums, it does not provide a definitive measure of overall insurance costs. Total premiums depend on multiple factors, including the vehicle’s type class, the annual mileage, and the trend in repair costs. Repair expenses, in particular, have been rising faster than general inflation, leading to estimated losses of around €5 billion for insurers over the past two years.
This increase in costs underscores why some districts experience higher class upgrades and why urban centers with frequent accidents and high repair costs tend to have more expensive insurance premiums.
While the most visible changes affect liability insurance, adjustments in full and partial coverage policies are less dramatic. According to GDV data, around 2.1 million drivers will be upgraded to higher classes for comprehensive or partial coverage, potentially increasing their premiums. Meanwhile, approximately 2.6 million drivers will move to lower classes, offering some relief in policy costs. 33.4 million policyholders, however, will see no change, suggesting that the majority of comprehensive and partial coverage contracts remain stable under the new regional statistics.
This indicates that while liability insurance remains the most sensitive to regional claims patterns, comprehensive and partial coverage premiums are generally more stable.
The GDV’s regional statistics are non-binding, meaning that insurers have discretion in applying them. However, the calculations provide a framework for adjusting premiums based on updated risk profiles and can be applied immediately for new insurance contracts or for existing contracts starting from the next insurance year. By providing insurers with clear, data-driven insights, the regional classes help standardize risk assessment across Germany and give drivers a transparent understanding of how their location can influence insurance costs.
Importantly, drivers should be aware that while changes in regional classes may indicate potential shifts in premiums, individual policy costs will still depend on personal factors such as vehicle type, driving behavior, and repair cost trends.
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