In 2025, car insurance premiums have increased significantly for many vehicle owners. Many policyholders are now receiving their new premium statements and are often surprised by the rate hikes. But what should you do if your car insurance suddenly becomes more expensive? This article explains why premiums are rising, what options you have as a policyholder, and how to make sure you’re not overpaying. Now is the perfect time to have your car insurance professionally reviewed – with us, you’ll get affordable rates while enjoying personal service and expert advice.

Why Car Insurance Premiums Are Rising So Much in 2025

In 2025, many drivers are facing an unwelcome surprise: their car insurance premiums have increased significantly. In some cases, premiums have risen by up to 80%, while on average, an increase of 25-30% is being observed. These sharp price hikes are affecting both partial and comprehensive coverage and are particularly widespread this year. But what is causing these adjustments?

Main Reasons for the Premium Increases

• Rising repair costs: Parts and labor costs in workshops have become more expensive, directly impacting insurance costs.
• More damage from natural disasters: Storms and hail damage caused over 400 million euros in vehicle-related claims in Germany in the first half of 2024 alone, increasing the overall claims burden for insurers.
• Challenging market conditions for insurers: Some insurance companies, facing losses, are adjusting premiums significantly to remain profitable. Certain insurers are particularly impacted as they stabilize their financial position.

These developments affect almost all insurers, with some price adjustments being more severe than others. Even if no accidents were caused and the vehicle’s classification improved, steep premium increases can still occur.

How to Respond to Premium Increases

If your car insurance suddenly becomes more expensive, you don’t have to accept it passively. There are several ways you can improve your situation without compromising on necessary coverage.

1. Switching Your Insurance: A Worthwhile Option

Switching your insurance provider can result in significant savings. In many cases, switching to another insurer can reduce premiums by up to 50%. The process is simple: with the right comparison tools and professional advice, you can find a policy that suits your needs within minutes.

2. Negotiating: Take Advantage of the Opportunity to Get Better Terms

If you’d rather not switch, you can try negotiating better terms with your current insurer. Personal agents, especially, often have room to adjust premiums. As your trusted insurance agency, we advocate for your best interests and help you secure the best possible deal.

What Makes a Good Car Insurance Policy: The 4 Key Points

Before deciding to switch or adjust your car insurance policy, it’s important to understand what makes a good policy. These four aspects are crucial for comprehensive protection:

1. High coverage limits: Ensure your liability coverage is high enough, ideally at least 100 million euros, to cover large claims in the event of an accident.
2. Bonus protection: Some policies increase premiums after a claim, but bonus protection prevents this from happening, allowing you to retain your current rate for at least one claim.
3. Mallorca policy: If you rent cars abroad, make sure your policy covers damage to rental vehicles. The so-called Mallorca policy offers this important additional protection.
4. Waiver of gross negligence: Some insurers waive their right to invoke gross negligence in certain accidents. This provides better protection in situations such as distraction-related accidents.

Tips for Lowering Your Car Insurance Premium Without Switching

Even if you don’t want to switch providers, there are several ways to reduce your premium. These options can be discussed directly with your insurer or adjusted with our expert help:

• Pay for small claims yourself: For smaller claims, it’s often worth paying out of pocket to avoid being moved into a higher risk category. Claims under 2,500 euros for liability and under 3,400 euros for comprehensive coverage are usually worth paying on your own.
• Reduce your mileage: Driving fewer kilometers can result in lower premiums. Check whether the mileage reported to your insurer matches your actual usage, and adjust if necessary to save on costs.
• Opt for a workshop clause: By choosing a policy with a workshop clause, which requires you to use specific partner workshops for repairs, you can save up to 12% on your premium.
• Increase your deductible: Increasing your deductible can significantly lower your annual premiums. A 300-euro deductible for comprehensive and 150-euro for partial coverage can save you up to 28%.
• Pay annually: Paying your premium annually instead of monthly can save you around 6% per year.
• Adjust your list of drivers: If you are the sole driver or share the car with one other person, review your policy and remove any unnecessary drivers to lower your premium.

Special Termination Rights: How to Switch Your Car Insurance the Right Way

If your car insurance provider increases your premiums, you have the right to terminate your contract early. The deadline for doing so is four weeks from the date you receive your new premium notice. Important: Be sure to have a new policy in place before canceling your current one. Alternatively, let us handle the switch for you with our cancellation service, ensuring a smooth transition to your new insurer.

Why You Should Have Us Review Your Car Insurance

Choosing the right car insurance is about more than just price – it’s about getting the best coverage and service. As your experienced insurance agency, we offer not only competitive rates but also personal support to handle all your needs. Our service includes a thorough consultation that focuses on your individual requirements. Let us review your car insurance now and save money without compromising on protection or service.

Conclusion: Act Now and Benefit from Better Rates

2025 is shaping up to be an expensive year for many drivers, but you don’t have to accept it. Whether by switching your car insurance provider or adjusting your current policy, you can save hundreds of euros per year. With our expert guidance, you’ll find not only the best price but also the best coverage. Fill out our Online Quotation Form and secure the best possible terms for your car insurance in 2025.