Comment by thyristan

Car insurance in Germany exists in 3 categories.

The mandatory one, liability insurance, which pays out others' damages in case your car is in an accident and the driver of your car is found to be at fault. Base rates for those are by law based on the rate of payouts per car model and per owner's county at that insurance company. A multiplier makes the base rate more expensive or cheaper respectively for new drivers, accident-prone drivers or long-time accident-free drivers. No other external statistics are allowed to play a role.

The two non-mandatory ones are "Vollkasko" and "Teilkasko", which pay for damages your own car suffered from various factors like animals, weather, accidents, road conditions and stuff like that. Vollkasko even pays for accidents you caused yourself, Teilkasko only for some of the aforementioned things. In both, insurers are still required to do some classification by county, but they are allowed to factor in statistics about your car's repair cost.

But none of those will pay for your car just randomly breaking down and needing repairs, that is something you get a manufacturer's warranty for. And none of those is directly related to the mandatory inspections. I think I've read some statistics that driver behaviour and skill is also a large factor in why there are less accidents in Germany, at least compared to some regions of the world... But make of those what you will, that might as well be jingoism and often also comparing apples and oranges...