German vehicle safety and insurance trends

Recent data from the TÜV Report 2026 indicates a decline in the technical condition of the vehicle fleet in Germany. Approximately 21.5 percent of vehicles fail their main inspection (HU). The most frequent reasons for failure include defective low-beam headlights, with over 600,000 recorded defects, and issues with brake discs or brake pads, with over 317,000 recorded defects.

In the insurance sector, drivers in Germany can potentially reduce costs through telematics tariffs, often referred to as ‘Pay how you drive’ models. These programs use GPS, telematics boxes, or smartphone apps to monitor driving behavior, including speed, acceleration, and braking. While these services offer lower premiums for safe drivers, they require the collection and evaluation of driving data to generate individual safety scores.