Germany Relies on Market Competition to Control Driving School Costs Amid License Reform
Politics

Germany Relies on Market Competition to Control Driving School Costs Amid License Reform

The German Ministry of Transport hopes that the planned reform of the driving license system will prevent a significant increase in insurance costs due to the new regulations. Speaking to the dts news agency on Wednesday, a ministry spokesperson emphasized that the final determination of rates rests with the insurance companies, noting that they offer differing tariffs and discounts. Therefore, she suggested that the market itself must act as the regulator, advising consumers to actively seek out the most favorable rates, thus relying on “market consolidation in this area”.

This reform was previously introduced by the cabinet and involves enabling a form of preliminary, trainee education. Under this system, driving students will be allowed to gain practical driving experience on public roads under the guidance of close family members, such as their parents. A prerequisite for participation is successfully passing a theory examination. Nevertheless, within the driving school industry, there is an expectation of increasing contributions for both vehicle and accident insurance.