Title: A Comprehensive Guide to Car Insurance in Germany (2025)
Germany, home of the Autobahn and iconic car manufacturers like BMW, Mercedes-Benz, and Volkswagen, takes its vehicles and road safety very seriously. One key aspect of this is car insurance, which is not only essential for protecting your vehicle but also mandatory by law. Whether you're a local resident or an expat planning to drive in Germany, understanding the intricacies of the German car insurance system is crucial.
This guide provides a comprehensive overview of car insurance in Germany, including its types, legal requirements, pricing factors, and how to choose the right provider.
1. Is Car Insurance Mandatory in Germany?
Yes. Car insurance is legally required in Germany. Every vehicle that operates on public roads must have at least liability insurance (Kfz-Haftpflichtversicherung). You cannot register a vehicle without proving that you have valid insurance.
Driving without car insurance is illegal and can lead to serious penalties, including hefty fines, license suspension, and even imprisonment in severe cases.
2. Types of Car Insurance in Germany
There are three main types of car insurance in Germany, each offering different levels of protection:
a) Liability Insurance (Haftpflichtversicherung)
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Mandatory for all drivers.
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Covers damage to other people, vehicles, or property caused by you.
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Does not cover your own vehicle's damage.
b) Partial Coverage (Teilkasko)
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Optional.
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Covers theft, fire, glass damage (like windshield cracks), weather-related damage (hail, flooding), and animal-related accidents.
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Does not cover accidents that are your fault.
c) Fully Comprehensive Coverage (Vollkasko)
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Optional but often recommended for new or high-value cars.
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Covers everything in Teilkasko plus damage to your own vehicle, even if you are at fault.
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Also covers vandalism and hit-and-run cases.
3. Cost of Car Insurance in Germany
The cost of car insurance in Germany varies significantly based on multiple factors:
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Type of coverage (Haftpflicht, Teilkasko, or Vollkasko)
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Driver’s age and experience
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Car type and model (sports cars cost more to insure)
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Location (urban areas usually have higher premiums)
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No-claims bonus (Schadenfreiheitsklasse)
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Annual mileage
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Usage (private or business)
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Garage availability (cars parked in garages are safer)
As a general estimate (2025):
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Liability insurance: €300–€600/year
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Partial coverage: €500–€800/year
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Full coverage: €800–€1,500+/year
4. The No-Claims Bonus System (Schadenfreiheitsrabatt)
Germany uses a no-claims bonus system to reward drivers who don’t make insurance claims.
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Each year you drive without making a claim, your “Schadenfreiheitsklasse” (SF class) improves.
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The higher your SF class, the more discount you get on your premium (can go up to 75%).
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If you make a claim, your SF class may drop, and your premium will increase.
For new drivers, this system starts at a standard SF level, but you can transfer your SF class from another EU country in some cases—check with your insurer.
5. Car Insurance for Expats in Germany
If you're an expat or international student, getting car insurance in Germany may seem confusing, but it’s quite manageable.
What you need:
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A German address (registration required)
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A German bank account (SEPA payment)
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Vehicle registration documents (Zulassungsbescheinigung Teil I & II)
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Valid driver’s license (EU or international + translation)
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Proof of previous insurance (if applicable)
Tips:
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Some companies offer services in English, such as Feather, Getsafe, or Allianz Global Assistance.
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Always compare offers online through comparison sites like Check24.de or Verivox.de.
6. How to Get Car Insurance in Germany
Here’s a step-by-step guide:
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Choose your coverage level (Haftpflicht, Teilkasko, or Vollkasko).
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Compare quotes online using platforms like Check24 or Verivox.
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Select a provider and submit your application.
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You’ll receive an eVB number (Elektronische Versicherungsbestätigung).
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Use the eVB number to register your car at the Kfz-Zulassungsstelle.
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Once registered, your insurance coverage starts.
7. Key Terms to Know
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eVB-Nummer: Electronic Insurance Confirmation Number required for vehicle registration.
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Zulassungsstelle: Vehicle registration office.
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Schadenfreiheitsklasse (SF): No-claims bonus level.
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Kfz-Kennzeichen: License plate.
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Selbstbeteiligung: Deductible you agree to pay out-of-pocket before the insurer covers the rest.
8. Additional Coverage Options
German insurance providers also offer various add-ons:
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Legal protection insurance (Rechtsschutzversicherung): Covers legal costs in disputes after an accident.
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Breakdown assistance (Schutzbrief): Roadside assistance similar to AAA.
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Gap insurance (GAP-Versicherung): Covers the difference between the car’s actual value and remaining lease/loan payments.
9. Canceling or Switching Car Insurance
In Germany, you can switch your car insurance once a year, usually by November 30th, with new policies starting January 1st. You can also cancel in cases like:
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Selling your car
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Moving abroad
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Vehicle deregistration
Make sure you cancel in writing and confirm the notice period (usually 1 month).
10. Popular Car Insurance Providers in Germany (2025)
Here are some reputable insurers:
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HUK-Coburg – Known for competitive rates and good service.
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Allianz – One of the largest and most established insurers.
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AXA – Offers international support.
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DEVK – Popular among civil servants.
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Getsafe – Digital-first, modern approach.
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Feather Insurance – Great for expats, offers English-speaking support.
Conclusion
Car insurance in Germany is more than a legal formality—it’s a well-structured system designed to protect drivers, pedestrians, and property. Whether you're a long-term resident or a newcomer, taking time to understand your options and rights can save you money and stress in the long run.
Before choosing a policy, always compare prices, check your deductible, and think carefully about whether full coverage is worth it for your vehicle. And if you're an expat, don’t worry—many providers now offer English support to make the process smooth and simple.