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Why does my regional class change at the turn of the year?

In short

Why does my regional class change at the turn of the year? Because an independent trustee recalculates the claims record of every registration district in Germany once a year. The new classes come out in September and apply to existing contracts from the next insurance year, usually 1 January. For 2027, 4.8 million drivers move up in liability and 5.2 million move down.

Why does my regional class change at the turn of the year?

What it costs

Published 2027 index values and an average premium for context.

ExampleTypical range
Liability, lowest district Elbe-Elster, class 1claims about 33 percent below average
Liability, highest district Offenbach, class 12claims almost 40 percent above average
Partial cover, highest district Ostallgäu, class 16index 228.35, more than twice the average
Car liability, average premiumabout 256 euros a year

Index values from the press release of 9 September 2026, average premium as of September 2026.

Each insurer sets its own euro amount per class;

the worked example below is a guide value from quoting practice.

Worked example

Liability goes up one regional class

A keeper pays 256 euros for liability. On 1 January their district moves up one class, everything else stays the same.

Premium so far256 euros
Surcharge for one class higherabout 5 to 8 percent
Premium from 1 Januaryabout 269 to 276 euros
Notice periodone month from receiving the notice

Around 13 to 20 euros more per year. Switching only pays off if another policy with the same cover is clearly cheaper.

Who sets the regional class

The German insurers' association (GDV) analyses claims in 413 registration districts every year. Each district gets an index value, with the national average at 100. Below 100 means cars registered there cause fewer or cheaper claims than average, above 100 means more.

The index translates into a class (Regionalklasse): 1 to 12 in liability, 1 to 9 in comprehensive cover and 1 to 16 in partial cover. The statistics are a recommendation, not a law. Under the model terms AKB 2015, an independent trustee checks every year whether the claims requirement of your region has changed (J.2).

What changes for 2027

The association published the 2027 classes on 9 September 2026. In liability, 5.2 million drivers in 63 districts move to a better class and 4.8 million in 46 districts to a worse one. In 304 districts with over 32 million drivers nothing changes. In comprehensive and partial cover, around 2.4 million move up and the same number move down.

The ranking differs by type of cover because different claims count. In partial cover, wildlife, hail, storm and theft weigh heavily, which is why a rural district, Ostallgäu in Bavaria, is the most expensive there.

CoverClassesLowest district 2027Highest district 2027
Liability1 to 12Elbe-Elster, index 67.32Offenbach, index 139.44
Comprehensive1 to 9Wesermarsch, index 79.87Garmisch-Partenkirchen, index 150.55
Partial cover1 to 16Bielefeld, index 61.97Ostallgäu, index 228.35

Why your home district counts, not where the accident happened

What matters is the keeper's place of residence, which the registration office reports to the insurer. Where an accident happens plays no role. A claim in Munich therefore counts towards the district in which the car is registered.

If you move, the class of the new district applies from re-registration (AKB K.3). That is a change in your own risk, not the annual update, so it gives you no special right to cancel.

Cancelling when your class goes up

If the new regional class raises your premium, you may cancel within one month of receiving the notice under J.4 and G.2.7 of the AKB, in line with § 40 of the Insurance Contract Act (VVG). The insurer must inform you at least one month before the increase and point out this right. Cancellation takes effect at the earliest on the day of the increase, so you pay nothing at the new price.

If your type class and regional class change at the same time, the total counts: if a better type class offsets a worse regional class, there is no right to cancel. Your no-claims class is not one of these tariff changes.

When you do not need to act

If your class goes down or stays the same, there is nothing to do. Even a higher class does not automatically make the policy more expensive, because the regional class is only one factor next to type class, annual mileage, drivers and no-claims history.

If you have just moved to Germany, your first policy is rated with the class of the district where you register the car, and the annual update applies to you like everyone else. You cannot influence the regional class yourself. Giving a different address to get a cheaper class is a false statement to the insurer and puts your cover at risk.

Step by step

  1. Open the premium notice for the new year and note the date you received it.
  2. Compare regional and type class with last year's policy schedule.
  3. Check whether these changes raise the premium overall.
  4. If they do, get quotes with the same cover.
  5. Sign the new policy first, then cancel within one month.

Checklist

  • Date of receipt of the notice noted
  • Old and new regional and type class side by side
  • Does the premium rise overall because of the classes?
  • Address in the registration is correct
  • New quote with the same cover, not just the same price

Common mistakes

  • Confusing the class with the place of the accident or your workplace
  • Expecting a special right to cancel after moving house
  • Missing the one-month deadline after receiving the notice
  • Giving a second home as your residence to get a better class

Questions and answers

Frequently asked

When are the new regional classes published?

Every year in late summer.

The 2027 classes came out on 9 September 2026.

Does the new class apply immediately?

For new contracts the insurer may apply it at once,

for existing contracts from the next insurance year.

Does my insurer have to use the classes?

No.

The statistics are not binding, but most insurers use them.

Where can I see my regional class?

In your policy schedule and the premium notice.

The association also publishes a map of all districts on its consumer site.

Can I cancel if only my partial cover class rises?

Yes, if the premium rises as a result.

Under the model terms the right also applies to comprehensive and partial cover.

Will I be reclassified after moving?

Yes, the class of the new district applies from re-registration.

This does not give you a special right to cancel.

Sources

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