In Germany, the type classes of car insurance are adjusted every three years. From 1. The new type classes, which may lead to an increase in insurance premiums, will come into effect on January 2021. An analysis by the insurance comparison portal CHECK24 showed that certain vehicle models have to pay up to 33 percent higher premiums.
The type classes are used by insurance companies to assess the claims record of certain vehicle models. The higher the damage record, the higher the type class and therefore the higher the insurance premium. Accordingly, models with high horsepower figures and high payloads are particularly affected.
However, the new type classes do not only affect vehicles, but also certain postal code areas. In some regions, policyholders will also have to reckon with higher premiums as of next year.
Overall, about 30 percent of vehicles in Germany are affected by the new type classes. Policyholders should review their contracts and, if necessary, carry out an insurance comparison to possibly save costs.
Type classes – What are they and what do they mean for your car insurance??
Type classes serve as the basis for calculating insurance premiums in motor vehicle insurance. They are based on statistical data and provide information on how high the risk is that a particular vehicle will be involved in an accident. The higher the type class, the higher the insurance premium.
Every year, the type classes are redefined by an independent institute. New type classes have now been published for 2021, which can lead to an increase in insurance premiums of up to 33 percent for some car owners. Cars with high weight, high performance and large engines are particularly affected.
- What to do if insurance becomes more expensive?
- Check whether it makes sense to switch to another insurance company. Compare the offers and choose the best one for you.
- Determine whether there is potential for savings in your tariff. You may be able to switch to a higher deductible or forgo unnecessary additional benefits.
- Do you really need fully comprehensive cover? Depending on the age of the vehicle, partial coverage may be sufficient.
An increase in insurance premium is annoying, but not necessarily a reason to panic. With the right measures, costs can be reduced.
How the new type classes work
The new type classes in motor vehicle insurance are currently causing a stir. According to the German Insurance Association (GDV), insurance premiums may increase by up to 33 percent for some car owners. But how do these new type classes actually work?
The type classes are used to determine the insurance premium of a car. They are calculated based on statistical experience of damage claims. The more often a particular model has been involved in accidents, the higher its type class and therefore its insurance premium.
The new type classes are based on updated claims data from the past four years and now also take into account modern assistance systems. As a result, cars equipped with such systems can be classified in lower type classes. On the other hand, models that were previously considered rather safe can also be classified in higher type classes due to new findings.
- The new type classes are thus:
- updated
- Take into account modern assistance systems
- allow for lower classifications if the car is equipped accordingly
- May result in models previously considered safe being placed in higher type classes.
Ultimately, the new type classes should enable a fairer distribution of insurance premiums. Those who drive a safe car should be rewarded, those who are frequently involved in accidents will pay more. However, some car owners must now prepare for higher insurance premiums.
What are the consequences for consumers?
Due to the reclassification of the type classes in the car insurance, consumers can expect significant additional costs. According to current estimates, prices may rise by up to 33 percent. Depending on the type of vehicle and no-claims class, the price increase may vary. In particular, owners of expensive or older vehicles can expect higher premium rates.
In addition to higher costs, consumers may also experience limitations in their choice of insurance. In hopes of minimizing price increases, some insurers may limit their insurance offerings and no longer cover certain claims scenarios. Customers should therefore carefully review their insurance policies to avoid unexpected additional costs or loss of benefits.
If price increases don’t fit into consumers’ budgets, they should look for cheaper options immediately. By comparing current car insurance quotes, they may be able to save money without sacrificing important performance features. It’s also wise to contact your insurance provider to see if there are ways to reduce premium rates in the new type class.
Tips for car insurance customers during the change in type classes
The annual introduction of new type classes in car insurance can mean that consumers will experience unexpected changes in their rates. If your car has been placed in a higher type class, this could mean paying up to 33% more for your insurance policy. However, to save unnecessary money, here are some steps consumers can take during these changes.
- Compare quotes: It is advisable to compare different insurance quotes to ensure you get the best possible coverage at the best possible price.
- Review your cover: It is also advisable to review all your cover to see if you are unnecessarily double insured or if changes in your lifestyle or driving route mean that you need to adjust your cover.
- Talk to an insurance advisor: If you’re unsure how type class changes will affect your insurance or what adjustments should be made, a qualified insurance advisor can help you make the right decisions.
By taking these measures, consumers can avoid unnecessary costs and surprises due to changes in the type classes in the car insurance policy.