Car Insurance in Germany: A Complete Guide for 2025
Germany, known for its world-class automotive industry and the famous Autobahn, has one of the most structured and regulated car insurance systems in Europe. Whether you're a local resident or a foreigner planning to drive in Germany, understanding how car insurance works is essential for legal compliance and personal safety.
In this article, we will explore everything you need to know about car insurance in Germany in 2025 — from mandatory coverage types to average costs, key providers, and practical tips for choosing the best policy.
1. Is Car Insurance Mandatory in Germany?
Yes, car insurance is mandatory in Germany. In fact, it is impossible to register a car without valid insurance. The law requires every vehicle owner to have at least third-party liability insurance, known as Kfz-Haftpflichtversicherung.
This insurance covers any damage or injury caused to other people, vehicles, or property in the event of an accident that is your fault. Driving without insurance is a criminal offense in Germany and can result in heavy penalties, fines, or even imprisonment.
2. Types of Car Insurance in Germany
There are three main types of car insurance in Germany:
a. Third-Party Liability Insurance (Haftpflichtversicherung) – Mandatory
This is the minimum legal requirement. It covers:
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Damage to other vehicles
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Injuries to other people
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Property damage
However, it does not cover damage to your own car or personal injuries.
b. Partial Coverage (Teilkasko) – Optional
This covers:
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Theft
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Fire and explosion
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Broken windows or windshields
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Damage from natural events (e.g., hail, storm, floods)
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Animal collisions (e.g., deer or wild boars)
It’s a popular choice for people with older vehicles or those who want a bit more protection beyond liability.
c. Comprehensive Coverage (Vollkasko) – Optional
This is the most extensive form of insurance and covers:
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Everything included in Teilkasko
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Damage to your own vehicle due to an accident (even if it was your fault)
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Vandalism
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Hit-and-run cases
This option is usually recommended for new or high-value cars.
3. Cost of Car Insurance in Germany
The cost of car insurance in Germany varies based on several factors:
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Type of coverage (Liability, Teilkasko, Vollkasko)
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Vehicle type and age
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Your age and driving experience
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Your accident history
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Location
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Mileage per year
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No-claims bonus (Schadenfreiheitsklasse)
Average Annual Premiums:
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Liability only: €250 – €500
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Partial coverage: €500 – €800
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Full comprehensive: €800 – €1500+
Young drivers under 25 usually pay more due to higher risk levels, while drivers with long accident-free histories enjoy discounts.
4. No-Claims Bonus (Schadenfreiheitsrabatt)
Germany uses a no-claims discount system, which can significantly reduce your premiums over time. For every year you don’t make a claim, your risk class (Schadenfreiheitsklasse) improves, resulting in cheaper insurance.
If you’ve had insurance in another EU country, some German insurers may accept your claim-free history, but it’s not guaranteed.
5. How to Choose a Car Insurance Provider
Germany has many reputable car insurance providers. When choosing one, consider the following:
a. Top Insurance Companies in Germany
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HUK-Coburg
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Allianz
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AXA
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DEVK
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ERGO
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R+V Versicherung
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Gothaer
b. Comparison Websites
You can compare prices and coverage easily using tools like:
These platforms are widely used and trusted for finding competitive insurance rates.
6. Required Documents for Getting Car Insurance
To get insured and register your vehicle, you need:
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Valid driving license (EU or approved international license)
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German address (Anmeldung)
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IBAN (bank account)
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Vehicle details (make, model, VIN, etc.)
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eVB number (electronic insurance confirmation)
The eVB number is a unique code provided by the insurer, confirming that the vehicle is insured. You need it to register the car at the local vehicle registration office (Zulassungsstelle).
7. How to Lower Your Insurance Costs
Here are some ways to save money on car insurance in Germany:
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Choose higher deductibles (Selbstbeteiligung)
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Bundle insurance products with one provider (e.g., home + car)
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Pay annually instead of monthly
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Drive fewer kilometers
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Park in a garage instead of on the street
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Use telematics-based insurance (monitoring safe driving habits)
Some insurers offer discounts for eco-friendly cars or for using dashcams.
8. Driving as a Foreigner in Germany
If you’re a foreign resident or expat:
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You can use your foreign driving license for 6 months (EU citizens have longer periods).
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After this period, you may need to convert your license to a German one.
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You are still required to have German car insurance if you own and drive a car registered in Germany.
If you bring your car from another EU country, you must re-register it in Germany within a specific timeframe and switch to a local insurance policy.
9. What to Do in Case of an Accident
If you're involved in a road accident:
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Stay calm and secure the scene.
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Call emergency services if needed (112 for ambulance/fire, 110 for police).
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Exchange information with the other driver(s):
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Name, contact details
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License plate number
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Insurance details
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Take photos of the damage and scene.
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Fill out the European Accident Statement (if available).
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Notify your insurance provider immediately.
10. Conclusion
Car insurance in Germany is a well-regulated and essential aspect of vehicle ownership. Whether you're driving a modest hatchback or a premium German-engineered car, understanding the types of coverage, your legal responsibilities, and how to reduce costs is crucial.
Always compare offers, read the fine print, and make sure you're adequately covered. Driving uninsured in Germany is not only risky but illegal.
With the right policy in place, you can hit the road with confidence, knowing that you're protected from unexpected events.