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Car Insurance in Germany: A Comprehensive Guide

 

Car Insurance in Germany: A Comprehensive Guide

Car insurance in Germany is not only a legal necessity but also an essential safeguard for drivers, passengers, and pedestrians. With one of the most organized and regulated insurance systems in Europe, Germany ensures that all vehicles on the road are covered for at least the most basic liability. Understanding how car insurance works in Germany is crucial for both residents and expatriates who plan to drive or own a vehicle.

In this comprehensive guide, we will explore the types of car insurance in Germany, the legal requirements, coverage options, average costs, and how to choose the right policy.


1. Legal Requirement for Car Insurance in Germany

In Germany, it is mandatory to have car insurance if you own a motor vehicle. The law requires that every car must have at least third-party liability insurance (Haftpflichtversicherung) before it can be registered and used on public roads.

Without proof of valid insurance, you cannot register your vehicle. Driving without insurance is considered a criminal offense and can result in heavy fines, penalty points, or even imprisonment in extreme cases.


2. Types of Car Insurance in Germany

German car insurance is categorized into three main types:

a. Third-Party Liability Insurance (Haftpflichtversicherung)

This is the minimum required by law. It covers:

  • Damage to other vehicles or property

  • Injury to other people

  • Legal costs if you are taken to court

However, it does not cover any damage to your own vehicle or injury to yourself.

b. Partial Coverage Insurance (Teilkasko)

This is optional but offers broader protection. It includes everything covered by third-party liability insurance, plus:

  • Theft of the car

  • Fire, explosion, or lightning damage

  • Glass breakage (e.g., windshield)

  • Damage from animals (like marten bites)

  • Natural disasters (storms, floods, hail)

Teilkasko is a popular option for those with older cars or who don’t need full coverage.

c. Comprehensive Insurance (Vollkasko)

This is the most extensive type and includes everything in Teilkasko plus:

  • Damage to your own car, even if you are at fault

  • Vandalism

  • Accidents involving only your car

It is recommended for new, expensive, or leased vehicles.


3. Additional Coverage Options

Many insurance providers in Germany offer additional services that can be included in your policy, such as:

  • Breakdown assistance (Schutzbrief)

  • No-claims bonus protection (Rabattretter)

  • Legal protection insurance (Rechtsschutzversicherung)

  • Replacement car service (Ersatzwagen)

  • Personal accident insurance (Insassenunfallversicherung)

These add-ons can be useful, but they also increase your premium.


4. Car Insurance Costs in Germany

The cost of car insurance in Germany depends on multiple factors:

a. Type of Insurance

  • Haftpflicht is the cheapest.

  • Teilkasko is more expensive.

  • Vollkasko is the most expensive.

b. Driver’s Age and Experience

  • Young drivers (under 25) pay significantly more.

  • More experience = lower premium.

c. Vehicle Type and Age

  • New or high-performance cars cost more to insure.

  • Older cars with low market value may only need Haftpflicht.

d. Location

  • Cities with high traffic or accident rates (like Berlin or Munich) have higher premiums.

e. No-claims Bonus (Schadenfreiheitsklasse - SF)

The longer you drive without making a claim, the higher your discount. Some drivers can save up to 50–75% on their premiums with a good SF class.

f. Annual Mileage

The fewer kilometers you drive per year, the less you pay.

Sample Premiums:

Insurance TypeAnnual Cost (Approx.)
Haftpflicht€300–€800
Teilkasko€500–€1,200
Vollkasko€800–€2,000+

5. How to Choose the Right Insurance

Choosing the right car insurance depends on your needs, budget, and vehicle type. Here are some tips:

  • Compare providers: Use online comparison websites like Check24 or Verivox.

  • Read the fine print: Understand what’s included and excluded.

  • Consider your risk level: A new car may need Vollkasko, while an older car may do well with Haftpflicht.

  • Ask about SF classes: Check if your no-claims history from another country can be transferred.


6. Registration and Proof of Insurance (eVB Number)

To register a car in Germany, you need an eVB number (Elektronische Versicherungsbestätigung), a unique electronic code provided by your insurer. This proves that you have at least the minimum required insurance.

When registering your vehicle (Zulassung), you must present:

  • Vehicle registration documents

  • Personal ID or passport

  • Proof of address

  • eVB number

  • TÜV (technical inspection) certificate


7. Cancelling or Changing Insurance

You can usually cancel your car insurance policy annually, with at least one month’s notice before the end of the policy term (typically December 31).

However, you can also change insurance mid-year in the following cases:

  • Sale of the car

  • Total loss after an accident

  • Increase in premium without a claim

  • Change of vehicle

Switching insurers can often save you money, especially if you’ve improved your SF class or moved to a safer area.


8. Car Insurance for Foreigners and Expats

Expats living in Germany are required to get German car insurance if:

  • They own a vehicle registered in Germany

  • They live in the country for more than 6 months

Some important notes:

  • International no-claims bonuses may be accepted by German insurers.

  • Foreign driver’s licenses are usually accepted for up to 6 months. After that, you may need a German license depending on your country of origin.

  • If you import a car, you must get it inspected and insured before registration.


9. Tips to Reduce Your Car Insurance Premium

  1. Drive safely and avoid accidents.

  2. Choose a car with a low insurance classification.

  3. Park in a garage instead of the street.

  4. Increase your deductible (Selbstbeteiligung).

  5. Use telematics insurance (based on your driving behavior).

  6. Pay annually instead of monthly.


Conclusion

Car insurance in Germany is a highly regulated and essential part of vehicle ownership. From the legally required Haftpflicht to the full protection of Vollkasko, the system offers flexibility depending on your needs and budget.

Whether you're a resident or a newcomer to the country, understanding how the German car insurance system works can help you stay legal, save money, and protect yourself and others on the road. By comparing policies, knowing your driving habits, and choosing the right type of coverage, you can make informed decisions that provide both security and peace of mind.

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