Car Insurance in Germany: Everything You Need to Know
Car insurance in Germany is not just a financial product—it's a legal necessity. With one of the most efficient and structured road systems in the world, Germany has clear rules and systems in place to ensure safety and accountability on the roads. If you plan to drive or own a car in Germany, understanding the country’s car insurance policies is vital. This article provides an in-depth look at the types of insurance available, legal requirements, coverage options, costs, and how to choose the right policy for your needs.
1. Is Car Insurance Mandatory in Germany?
Yes, car insurance is mandatory in Germany. The German road traffic regulations require that every vehicle registered in the country must have at least third-party liability insurance (Haftpflichtversicherung). Without it, a vehicle cannot be registered or driven legally.
This insurance ensures that if you cause damage to another person, vehicle, or property while driving, your insurance will cover the costs. Driving without valid car insurance in Germany can result in heavy fines, criminal charges, and even loss of your driver's license.
2. Types of Car Insurance in Germany
There are three main types of car insurance coverage in Germany:
A. Third-Party Liability Insurance (Kfz-Haftpflichtversicherung)
This is the minimum legal requirement and covers:
-
Bodily injuries caused to others
-
Property damage
-
Financial losses caused to third parties
It does not cover any damage to your own vehicle or personal injuries you suffer in an accident you cause.
B. Partial Coverage Insurance (Teilkasko)
This is optional and includes everything covered in third-party liability, plus:
-
Fire and explosion
-
Theft or burglary
-
Natural disasters (flood, storm, hail, lightning)
-
Glass damage (e.g., windshields)
-
Short-circuit damage
-
Marten bites (damage caused by small animals)
It is a popular choice for owners of older or mid-range cars who want extra protection without the full cost of comprehensive insurance.
C. Comprehensive Insurance (Vollkasko)
This is the most complete form of car insurance. It includes:
-
All third-party and partial coverage benefits
-
Damage to your own car caused by you
-
Vandalism
-
Hit-and-run damages
Comprehensive insurance is typically recommended for new or expensive vehicles, leased cars, or anyone who wants maximum protection.
3. How Car Insurance Works in Germany
Once you choose a policy and insurer, you receive an eVB number (Elektronische Versicherungsbestätigung), a digital confirmation code from your insurer. This number must be provided when:
-
Registering a new vehicle
-
Changing the vehicle owner
-
Changing your insurer
The insurance is linked to your license plate and vehicle registration and is renewed automatically every year unless canceled in writing.
4. Factors That Affect Car Insurance Premiums
Car insurance costs in Germany vary depending on several factors:
A. Type of Car
The make, model, engine size, and age of the vehicle influence the premium. High-performance or luxury cars are more expensive to insure.
B. Driver’s Age and Experience
Younger drivers or those with less experience usually pay higher premiums.
C. Driving History
Accidents, speeding tickets, or driving violations in your record can raise your premium.
D. Place of Residence
Living in a city with a high rate of accidents or thefts might increase your insurance costs.
E. No-Claim Bonus (Schadenfreiheitsrabatt)
The longer you drive without making a claim, the lower your insurance premium becomes. This bonus can significantly reduce your annual cost.
5. Cost of Car Insurance in Germany
On average, car insurance in Germany costs between €300 and €1,200 per year, depending on the type of coverage and the individual circumstances.
-
Third-party insurance: from €250–€500/year
-
Partial coverage: around €400–€700/year
-
Comprehensive insurance: €700–€1,200/year or more
These are just averages—costs vary widely between insurance companies.
6. How to Choose the Right Insurance Provider
Germany has a competitive insurance market, with both large providers and smaller local companies. Popular insurers include:
-
Allianz
-
AXA
-
HUK-Coburg
-
DEVK
-
R+V
-
DA Direkt
When comparing providers, consider:
-
Monthly/annual premium
-
Customer service (English-speaking support for expats)
-
Online account management
-
Coverage terms and limitations
-
Claim process and reputation
Comparison websites like Check24 and Verivox can help you compare offers quickly.
7. Switching Car Insurance in Germany
You can change your insurance provider under the following conditions:
-
Annual contract end: Most insurance contracts renew annually. You must cancel at least one month before the renewal date (usually November 30 for January 1 renewals).
-
Premium increase: If your premium goes up, you often have a right to cancel within four weeks.
-
Change of vehicle: Buying a new car gives you the option to choose a new insurer.
The new insurer will issue a new eVB number that you submit to the vehicle registration office.
8. What to Do in Case of an Accident
In the event of a car accident in Germany, follow these steps:
-
Ensure Safety: Turn on hazard lights, set up warning triangle, and call emergency services if needed.
-
Exchange Information: Share names, insurance details, license plate numbers.
-
Take Photos: Document the scene and damages.
-
Report to Your Insurer: Report the incident within 7 days, even if you were not at fault.
For more serious cases, especially when there's a dispute, it may be useful to file a police report.
9. Insurance for Foreigners and Expats
Foreigners can get car insurance in Germany, but documentation might be required, such as:
-
German residence address
-
German bank account (SEPA)
-
Valid EU or international driving license (depending on duration of stay)
Some companies cater specifically to English-speaking expats. Look for insurers or brokers that offer services in English if you are not fluent in German.
10. Tips to Save Money on Car Insurance
-
Choose a higher deductible (Selbstbeteiligung)
-
Bundle policies with the same insurer (home + car insurance)
-
Install anti-theft devices
-
Drive safely and maintain your no-claim bonus
-
Pay annually instead of monthly
-
Compare offers every year
Conclusion
Car insurance in Germany is an essential part of driving legally and responsibly. With multiple options to choose from, it’s important to evaluate your personal needs, the value of your car, and your financial situation before selecting the appropriate policy. Whether you’re a local, a student, or an expat, understanding how car insurance works in Germany can save you money, time, and trouble on the road.