Ten million drivers affected: regional classes are changing drastically!

Ten million drivers affected: regional classes are changing drastically!

Motor vehicle insurance is facing a remarkable upheaval: According to an evaluation by car dealership The new regulation of regional classes affects over 10 million drivers in Germany. The reason? An annual adjustment based on the analysis of the loss balances of 413 registration districts has been carried out.

It will be particularly exciting for around 5 million drivers in 48 districts that are classified in higher regional classes. In return, around 5.3 million people in 51 districts will benefit from a reduction in their regional class. However, the majority of around 32.1 million motor vehicle liability insured persons remain in their previous classification.

Regional classes and their meaning

But what exactly are regional classes? These are used to calculate the vehicle insurance premiums and relate to the claims balance in the respective registration districts. Higher classes usually also mean higher insurance premiums, even if this is only part of the premium - type class, annual mileage and repair costs are also crucial. An upgrade is expected particularly in the federal states of Hesse and North Rhine-Westphalia, where almost one in four drivers is affected.

Regional classes also differ for motor vehicle liability, partial and fully comprehensive insurance. There are 12 classes for liability insurance, 9 for fully comprehensive insurance and 16 for partial comprehensive insurance. Interestingly, regions such as Brandenburg and Schleswig-Holstein have a much better loss record than, for example, Berlin, which has to contend with the worst record. Offenbach and Berlin show damage that is almost 40% above average, while the Elbe-Elster district in Brandenburg even records damage that is 30% lower than average.

Market development and future outlook

But it's not just the regional classes that are causing a stir. There is steady growth in the motor vehicle insurance sector. The Allianz Direct predicts an increase in premium income generated by motor vehicle insurance of up to 11% in 2025. This is also related to the inflation-related increase in premium prices, which already rose by 1.8% in 2023. These trends are a sign that the industry could continue to thrive and provides an interesting context for drivers considering changing their car insurance.

Now is the time for drivers in Germany to check the current offers and possibly change providers. The ADAC recommends that you obtain comprehensive information before the turn of the year, which means the notice period for many contracts is November 30th. This can definitely be worth it, because lower regional classes mean cheaper premiums.

How the situation will develop further and what individual effects the new regional classes will have on drivers remains to be seen. But one thing is certain: It can't hurt to take a close look at your car insurance to perhaps get the best deal.