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Global automobile insurance premium trends

Updated 10 times since CLSTR started tracking revisions of this situation.

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2026-10-04 08:41 UTC → 2026-10-04 08:41 UTC · added ~~removed~~

Automobile insurance markets in Germany and Japan are experiencing volatility driven by inflation and rising repair costs. In Germany, while Verivox data indicated a period of relative stabilization, long-term pressures remain. Since 2023, average tariffs have risen by 52.8 percent compared to 2022 levels, and market leader HUK Coburg has signaled expectations for further increases. In Japan, providers are implementing successive premium hikes. Sompo Japan Insurance announced an average increase of approximately 5% starting in January 2027, following a July 2026 increase, citing a 7.9% rise in repair cost unit prices. Tokio Marine & Nichido Fire Insurance is expected to raise premiums by approximately 6.5% in October 2026. These costs are exacerbated by the complexity of modern vehicle sensors and advanced driver assistance systems (ADAS). In Germany, the GDV reports that average property damage costs in motor vehicle liability reached 4,250 euros in 2024, a nearly 60 percent increase since 2017. This surge is driven by rising labor and spare part costs, including a 50 percent rise in labor rates for body and paintwork. Consequently, insurers reported industry-wide losses of nearly 5 billion euros over the last two years. ~~Recent GDV data highlights the scale of these pressures.~~ Following a 13.4 percent increase in motor vehicle insurance ~~premiums~~ revenue in 2025, the GDV expects a 5.2 percent growth in premiums across the damage and accident sector for 2026. A primary driver is the cost of spare parts, which have risen by more than 80 percent since 2015, significantly outpacing the 30 percent increase in consumer prices. To manage these costs, the GDV has adjusted insurance type classes for approximately 33,750 car models. ~~This affects 12.4 million vehicles, with 7.4 million seeing higher classifications and 5.1 million seeing lower ones.~~ Looking toward 2027, the GDV has released new regional classes for all 413 German registration districts.

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