Regional classes of car insurance: price adjustments in NRW

Regional classes of car insurance: price adjustments in NRW

In a current communication of the overall association of the German Insurance Industry (GDV) from Berlin, significant changes in the regional classes for car insurance in North Rhine-Westphalia were announced. Of 53 registration districts, drivers have to adjust to higher costs in eight regions. The city region of Aachen, the Ennepe-Ruhr-Kreis, Hagen, Herne, Hern, Höxter, Minden-Lübbecke, Recklinghausen and Viersen are particularly affected. These developments have a direct impact on insurance contributions for new contracts and existing contracts, with immediate validity for new degrees and from the coming insurance year for existing policies.

The GDV has updated the regional classes as part of an annual review based on an analysis of the damage balance sheets. The aim of this analysis is to identify those areas in which drivers are disproportionately causing damage. These classifications reflect the risk associated with vehicle insurance in the individual regions. The higher a regional class, the higher the insurance contribution.

Positive developments for Paderborn and Olpe

In contrast to the regions affected by price increases, there are also positive news for the residents of Paderborn and Olpe. Around 250,000 people in these areas benefit from improving their classifications, which may lead to lower insurance contributions. This is a welcome relief for drivers who can benefit from savings in a time increasing living costs.

In addition to the regional changes in motor vehicle liability insurance, there are also adjustments in the field of comprehensive insurance. Of the approximately 8.2 million vehicles insured in North Rhine -Westphalia, around 650,000 can downgrade into a cheaper regional class, while around 200,000 are affected by a poorer classification.

damage statistics and their meaning

The regional classes are not only arbitrary classifications, but are also based on the analysis of damage cases that occur in the various registration districts. The GDV carefully monitors these statistics and carries out the necessary adjustments annually. Interestingly, the report shows that there are no clear conclusions about the amount of the insurance contributions based solely on the basis of a change in the regional class. This means that even if a district is classified in a better class, this does not necessarily mean that the contributions have to drop automatically.

North Rhine-Westphalia has a system with a total of twelve regional classes for motor vehicle liability insurance, whereby the strongest class (and thus the highest danger) is classified as class 12. There are currently no cities in this highest risk class in NRW. In class 11 there are, among other things, the cities of Essen, Gelsenkirchen, Hagen, Remscheid and Wuppertal, while Borken, Coesfeld, Höxter, Kleve, Münster, Paderborn and Warendorf achieve the best ratings with class 4. For drivers, this can mean a significant difference in the insurance contributions.

The district of Elbe-Elster in Brandenburg has established itself throughout Germany as the safest area and is classified in regional class 1. In contrast, the city of Offenbach in Hessen is one of the most risky ones, with a classification in class 12, where the damage figures are almost 40 percent above average.

For many drivers in NRW, this means that their insurance contributions may change, which makes it essential to keep an eye on personal policies and, if necessary, make adjustments. These developments could also motivate policyholders to compare different providers to find the best offers and to optimize their project costs.

The classifications in the regional classes are not only important for drivers, but also for insurance companies themselves. These adjustments are based on comprehensive data analyzes and guidelines to precisely determine the risks. The regional classes are the basis on which the insurers calculate their bonuses, which makes it clear how important an accurate assessment of the damage risks is. According to the GDV, further changes will be expected in the coming years, depending on the regional damage balance.

Changes in the insurance market

The development of regional classes also has an impact on the competition within the insurance market. Providers try to win new customers through cheaper premiums in better classes. The price pressure is particularly high in competitive markets, such as in large cities. Insurance must constantly adapt their strategies to remain relevant in the market. In recent years, digital platforms and comparison portals have also established themselves that revolutionize pricing and access to car insurance.

A study by the European Insurance and Occupational Pensions Authority (EIOPA) shows that consumers are increasingly falling back on online platforms to find the best offers. This has caused many providers to have checked their conditions and services in order to remain competitive.

Regional classes and mobility trends

The changes in the regional classes are also related to overarching mobility trends in Germany. More and more people are interested in alternative means of transportation such as e-bikes or car sharing models. While the vehicle stocks in urban regions tend to fall, the insurance premiums in areas with high car traffic and striking numbers are increasing. This could also influence the future development of the regional classes, since the risk of damage may be reduced when there are fewer cars on the streets.

According to a survey by the German ADAC automobile club, over 40 percent of those surveyed stated that they would like to switch to a local mobility concept in the next five years, which directs the focus of the insurance industry to environmentally friendly alternatives. Such trends are not only a challenge, but also an opportunity for the insurance industry to reorient themselves.