KASSEL / LONDON (IT BOLTWISE) – Drivers in Germany have to prepare for rising costs. From 2026, vehicle insurance will become more expensive, and vehicle tax regulations will also change. Fully comprehensive insurance is particularly affected, as premiums could rise by up to eight percent. At the same time, the CO₂ tax on fuels will be increased, which will further drive up fuel prices.
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Drivers in Germany are facing a financial challenge: from 2026, the costs of vehicle insurance and taxes will rise significantly. Fully comprehensive insurance is particularly affected, as premiums could rise by up to eight percent. This development is a response to the increasing repair costs caused by the complex electronics of modern vehicles. Spare parts have become more expensive by over 80 percent in the last ten years, which is putting the insurance industry under pressure.
The vehicle tax is also being reformed. In the future, vehicle owners will have to pay the tax in one lump sum instead of spreading it out over the course of the year. This could be a financial burden, especially for families with multiple vehicles. However, one bright spot remains: electric cars are still exempt from vehicle tax, and this regulation has been extended until the end of 2030.
Fuel prices will also rise due to the planned increase in the CO₂ tax. Drivers currently pay 55 euros per ton of CO₂, but from 2026 market mechanisms will take effect that could increase the price to up to 65 euros per ton. This would increase the price of gasoline by about 16 cents per liter and diesel by 17 cents per liter.
For drivers, this means that they should check their insurance contracts and, if necessary, change them in order to save costs. In addition, switching to an electric vehicle could be financially advantageous in the long term, as they are exempt from tax and operating costs will continue to rise due to rising fuel prices for conventional vehicles.
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