Car Insurance in Germany: A Complete Guide for Drivers and Expats

Car insurance in Germany is not just a financial safety net; it’s a legal requirement for anyone owning or driving a vehicle on German roads. Known for its efficient traffic laws and famously unrestricted autobahns, Germany takes road safety seriously, and that includes having the right auto insurance coverage. Whether you are a local resident or an expatriate living in Germany, understanding the structure and rules of car insurance is essential. This comprehensive guide will walk you through everything you need to know about car insurance in Germany.

Is Car Insurance Mandatory in Germany?

Yes. In Germany, it is legally mandatory to have car insurance for all motor vehicles. You cannot register a car without proving you have at least liability insurance (Haftpflichtversicherung). Driving without valid car insurance can lead to heavy penalties, including fines, license suspension, or even imprisonment in extreme cases.

Types of Car Insurance in Germany

There are three main types of car insurance available in Germany:

1. Liability Insurance (Haftpflichtversicherung)

This is compulsory by law. It covers damages you cause to other people, their vehicles, or property. It does not cover damage to your own vehicle.

• Coverage includes:

  • Personal injury to others

  • Property damage

  • Legal fees in case of disputes

Note: Even a minor accident can cost tens of thousands of euros. That's why the government enforces this type of insurance strictly.

2. Partial Coverage (Teilkasko)

This is optional and includes everything in liability insurance plus additional protection against non-collision-related damages.

• Coverage includes:

  • Fire and explosion

  • Theft

  • Storm and hail

  • Broken glass (e.g., windshield)

  • Collision with animals

  • Vandalism (to a limited extent)

3. Comprehensive Coverage (Vollkasko)

This is the most extensive and expensive option. It covers all that Teilkasko covers plus damage to your own car, even when you’re at fault.

• Ideal for:

  • New or expensive vehicles

  • Leasing or financed cars

• Additional coverage includes:

  • Hit-and-run damage

  • Accidents caused by you

  • Vandalism

How Much Does Car Insurance Cost in Germany?

The cost of car insurance varies depending on multiple factors:

• Driver’s age and experience

• Type and model of car

• Driving record and claim history

• Postal code / region

• Annual mileage

• Use (private or commercial)

• No-claims bonus (Schadenfreiheitsklasse)

Average Monthly Premiums:

• Liability only: €25 - €80/month

• Partial coverage: €50 - €120/month

• Comprehensive: €100 - €200/month or more

The Schadenfreiheitsklasse (SF-Klasse) is a no-claims discount system. The more years you drive without an accident, the more your premium decreases.

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What Documents Are Required to Get Car Insurance?

To apply for car insurance in Germany, you’ll typically need:

1. Valid driver’s license

2. Vehicle registration certificate (Zulassungsbescheinigung Teil I & II)

3. Proof of previous insurance (if applicable)

4. Bank account details for payment

5. eVB number (Elektronische Versicherungsbestätigung) – a unique electronic insurance confirmation code required for vehicle registration.

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The eVB Number – What Is It?

When you get insurance in Germany, the provider gives you an eVB number. This is an electronic confirmation that proves your vehicle is insured. You will need this number to register your vehicle with the Kraftfahrt-Bundesamt (KBA) – the German Federal Motor Transport Authority.

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Best Car Insurance Providers in Germany

Some of the most popular and trusted car insurance companies in Germany include:

• HUK-Coburg – Competitive pricing and highly rated customer service.

• Allianz – One of the largest insurance firms with international support.

• AXA – Well-suited for expats and English-speaking customers.

• DEVK – Good for family or fleet coverage.

• CosmosDirekt – Offers great online insurance options.

Tip: Many providers offer online quotes, and some even offer policies entirely in English.

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Tips for Expats and Foreign Drivers

1. Use English-friendly services: Some providers cater to English-speaking customers. Look for international brokers or expat-focused websites.

2. Driving license recognition: If you are from an EU country, your license is valid. Non-EU drivers might need to convert their license after six months.

3. Compare insurance quotes: Use platforms like Check24, Verivox, or Tarifcheck to compare offers.

4. Leasing vs. owning: If you’re leasing a vehicle, comprehensive insurance is usually mandatory.

5. Consider deductibles (Selbstbeteiligung): Opting for a higher deductible can lower your monthly premiums.

6. Canceling old policies: Insurance contracts are usually valid for one year and automatically renew unless canceled with proper notice (usually 1 month before renewal date).

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What Happens in Case of an Accident?

If you're involved in an accident:

1. Secure the scene and ensure safety.

2. Call the police (especially if people are injured or if there is a dispute).

3. Exchange insurance details with the other party.

4. Take photos of damage and the accident scene.

5. Notify your insurance provider immediately (many companies require this within 24-48 hours).

If you're not at fault, your liability insurance won’t cover your own damage – unless you have Vollkasko.

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Car Insurance and Car Registration

To register a car (Anmeldung) in Germany, you must:

• Obtain an eVB number from your insurer

• Take your vehicle for a TÜV (technical inspection)

• Provide all required documents (ID, proof of residence, bank details, car documents)

• Visit the local Zulassungsstelle (registration office)

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Conclusion

Understanding car insurance in Germany is essential for both locals and expats. While the system may seem complex at first, it is designed for transparency, fairness, and road safety. From mandatory liability insurance to optional comprehensive coverage, German auto insurance gives drivers a wide range of protections tailored to their needs.

Always compare providers, read the fine print, and keep your records clean to benefit from discounts over time. With the right knowledge and preparation, navigating Germany’s car insurance system can be smooth and straightforward — leaving you free to enjoy the road ahead.