Is an automatic annual increase worth it in accident insurance?
In short
Is an automatic annual increase worth it in accident insurance? For young people with a long contract it usually is, for older people rarely. In Germany this clause is called Dynamik: cover and premium rise by 3 or 5 percent a year, with no new health questions. With 5 percent, a basic sum of EUR 100,000 grows to about EUR 162,900 after ten increases.
Published annual premiums in Germany for a basic sum of EUR 100,000 with 350 percent progression, plus the same premiums after ten increases of 5 percent.
Example
Typical range
Adult, office job, premium today
about EUR 60 to 180 a year
Adult, office job, after ten 5 percent increases
about EUR 98 to 293 a year
Adult, manual trade, premium today
about EUR 120 to 260 a year
Adult, manual trade, after ten 5 percent increases
about EUR 195 to 424 a year
Children's accident insurance, premium today
about EUR 50 to 100 a year
Premiums as of July 2026 from published tariff examples.
The figures after ten increases are calculated at exactly 5 percent a year;
how much your premium really rises is set out in your terms.
We obtain the exact quote for you.
Worked example
Age 30, office job, EUR 120 premium, ten years
How a 5 percent increase compares with a fixed contract. The EUR 120 premium is a guide value from our quoting practice.
Basic sum at the start
EUR 100,000
Basic sum after ten increases
EUR 162,889
Premium in year eleven
about EUR 195 instead of EUR 120
Premiums over eleven years
about EUR 1,705 instead of EUR 1,320
Buying power of EUR 100,000 after ten years at 2.2 percent inflation
about EUR 80,400
For about EUR 385 more over eleven years, your cover rises by almost EUR 63,000 without a health check. If you are sure EUR 100,000 will still be enough later, save the money; if you are young, take the increase.
What the clause actually does
With a Dynamik clause the agreed benefits rise every year by a fixed rate, usually 3 or 5 percent, and the premium rises with them. In one published set of policy terms, the lump sum for permanent disability, the accident pension, the death benefit, the transitional benefit, hospital daily allowance and daily allowance all take part. Benefits that come without their own premium, such as rescue costs and cosmetic surgery, stay the same there.
The real advantage is that the increase comes without new health questions. If you have become ill or had an accident in the meantime, you still get the higher sum. It then applies to every accident after the increase date.
Year
Basic sum with 5 percent increase
Without increase
Start
EUR 100,000
EUR 100,000
after 5 increases
EUR 127,628
EUR 100,000
after 10 increases
EUR 162,889
EUR 100,000
after 20 increases
about EUR 265,300
EUR 100,000
When an automatic increase is worth it
A fixed amount loses buying power every year. Consumer prices in Germany rose by 6.9 percent in 2022, 5.9 percent in 2023 and 2.2 percent in both 2024 and 2025. If you take out a policy at 30 and keep it for 30 years, a serious accident later will cost more in home conversion, aids and care than it would today.
The clause is especially useful for an accident pension, where a fixed monthly amount may be paid for decades, and for children, whose contracts run for a very long time. It also protects you if your health gets worse: then the yearly increase is often the only way to raise your cover without a new health check.
When you are better off without it
At 5 percent the premium grows faster than prices did in the last two years. After ten increases you pay a good 60 percent more than at the start. If your basic sum is already EUR 150,000 or more, you often do not need the yearly increase.
For older people it adds little, because it usually ends at 65, 67 or 70 and the need for cover tends to fall with age. If you review your policy every few years and raise the sum when it makes sense, you only pay more when you need to.
Objecting and ending the clause
Your insurer tells you about the increase before the new insurance year. In one published set of terms you can object in text form within six weeks of the notice, and either side can cancel the clause for the rest of the contract up to three months before the end of the insurance year. There it ends automatically in the year you turn 67 or once a maximum sum is reached.
Many plans allow one or two objections in a row. Three objections in a row usually end the clause for good. The exact rules are in the special terms for the Dynamik clause in your policy.
Step by step
Check your basic sum: will it still cover home conversion, aids and lost income in ten years?
Estimate how long you will keep the policy: ten years or more speaks for an increase.
Pick the rate: 3 percent roughly keeps pace with inflation, 5 percent builds up cover.
Read in the terms up to which age and which sum the increase runs.
Read every increase notice and only object on purpose.
Checklist
Increase without a new health check
Accident pension takes part in the increase
Deadline and number of allowed objections known
Age limit and maximum sum stated in the terms
Premium path over ten years worked out once
Common mistakes
Objecting three times out of habit and losing the clause for good
Adding the clause at 60 when it ends at 65 or 67
Choosing a low basic sum and relying on the increase instead of starting right
Assuming the increase also raises rescue costs and other fixed amounts
Questions and answers
Frequently asked
What does Dynamik mean in German accident insurance?
Cover and premium rise every year by a fixed rate, usually 3 or 5 percent,
without you having to answer health questions.
Can I object to the increase?
Yes, usually within a deadline after the notice.
Three objections in a row end the clause in many plans.
Does the accident pension rise as well?
In many plans it does.
Check the special terms, because the loss of buying power over decades is especially large for a
pension.
Is an automatic increase worth it for children?
Usually yes, because the contract runs for a long time and the sum should grow with the child.
Children's premiums are low, so the increase costs little.
Is it worth it for pensioners?
Rarely.
It usually ends at 65, 67 or 70, and the need for cover tends to fall with age.
Is a higher basic sum better than an automatic increase?
If you already know you need more cover, yes.
The increase is strongest when your health might get worse later.
