CAR INSURANCE IN GERMANY: A COMPREHENSIVE GUIDE
Introduction
Germany is famous for its high-speed autobahns, engineering marvels like BMW and Mercedes-Benz, and a deep-rooted culture of automobile excellence. However, owning and driving a car in Germany comes with a set of legal responsibilities—foremost among them is car insurance. Whether you're a local resident, an expatriate, or a foreign student planning to drive in Germany, understanding the country’s car insurance system is essential. This exclusive guide provides an in-depth look at the types of car insurance in Germany, legal requirements, cost factors, claim procedures, and tips for choosing the right policy.
1. Is Car Insurance Mandatory in Germany?
Yes. In Germany, car insurance is legally mandatory. Without valid insurance, you cannot register a vehicle or legally drive on public roads. The minimum required coverage is liability insurance, known in German as Kfz-Haftpflichtversicherung.
Driving without valid car insurance is not only illegal but can result in fines, license suspension, and even imprisonment in extreme cases.
2. Types of Car Insurance in Germany
There are three main types of car insurance policies in Germany:
A. Third-Party Liability Insurance (Haftpflichtversicherung)
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Mandatory for all vehicle owners
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Covers damage to other vehicles, property, or persons
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Does not cover any damage to your own vehicle
This insurance ensures that if you're at fault in an accident, the victims receive compensation for their losses.
B. Partial Coverage Insurance (Teilkasko)
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Optional, but commonly purchased
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Covers theft, vandalism, fire, natural disasters, glass breakage, animal-related damage, and vehicle theft
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Does not cover damages to your car if you're at fault in an accident
Teilkasko is a good choice for people with older vehicles or those who want a middle-ground between basic and full coverage.
C. Comprehensive Coverage (Vollkasko)
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Offers the most extensive protection
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Covers everything in Teilkasko, plus damages to your own car, even if you're at fault
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Includes vandalism, hit-and-run, and accidents caused by the driver
This insurance is typically recommended for new or valuable cars, leased vehicles, or those still under financing.
3. Cost of Car Insurance in Germany
Car insurance premiums in Germany vary depending on several factors:
Key Factors Affecting Cost:
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Driver’s age and experience
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Driving history (accident records, penalty points)
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Vehicle type, model, engine size, and value
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Place of registration (city vs. rural)
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Annual mileage
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Garaging (private garage vs. street parking)
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No-claim bonus (Schadenfreiheitsrabatt)
The no-claim bonus system significantly impacts your premium. If you've driven without making any insurance claims, your discount increases year after year. Conversely, claims or accidents may cause your premium to rise.
Average Annual Premiums:
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Haftpflicht only: €300–€600
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Teilkasko: €500–€800
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Vollkasko: €800–€1,500 or more
Prices are indicative and vary based on personal circumstances.
4. Vehicle Registration and Insurance
Before registering a car in Germany, you must present proof of insurance. This is done through a digital insurance confirmation code called the eVB-Nummer (elektronische Versicherungsbestätigung).
Steps to Register a Vehicle:
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Choose an insurance provider and obtain the eVB number
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Schedule an appointment at the Zulassungsstelle (Vehicle Registration Office)
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Provide documents: ID, car documents, proof of TÜV inspection, and eVB number
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Receive license plates and registration certificate
Without the eVB number, registration is not possible.
5. Making an Insurance Claim
If you are involved in an accident in Germany, the following steps are important:
At the Scene of the Accident:
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Stop your vehicle immediately and ensure safety
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Turn on hazard lights and set up a warning triangle
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Call the police if there are injuries or significant damage
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Exchange details with the other driver(s): name, license plate, insurer
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Take photos and document the accident scene
After the Accident:
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Notify your insurer as soon as possible (within 7 days is standard)
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Submit all documentation: accident report, photos, police report (if applicable)
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Depending on your coverage, the insurance company will guide you through damage assessment, repairs, and reimbursement
In Germany, honesty and prompt reporting are essential. Failing to disclose information may lead to a rejection of your claim.
6. Additional Optional Coverage
Many German insurers offer optional add-ons, including:
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Breakdown assistance (Schutzbrief)
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Legal protection insurance (Verkehrsrechtsschutz)
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No-claims protection (Rabattretter)
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Replacement vehicle coverage
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Glass-only coverage (Glasversicherung)
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Accessories coverage (e.g., navigation systems, child seats)
These can provide peace of mind, especially for frequent or long-distance drivers.
7. Insurers in Germany
There are dozens of insurers in Germany, from large national firms to digital-first startups. Some well-known names include:
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Allianz
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AXA
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HUK-Coburg
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DEVK
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Gothaer
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LVM
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Check24 and Verivox – popular comparison platforms for choosing insurance
It is common for people to compare offers every year and switch insurers to get better rates.
8. Car Insurance for Expats and Foreigners
Expats and foreign nationals can easily obtain car insurance in Germany. However, a few points should be noted:
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Driver’s license: Non-EU licenses may be valid for up to 6 months; after that, a German license is required
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Translation: Insurers may request an official translation of foreign documents
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Credit score: Some insurers may evaluate your Schufa score (German credit rating)
International residents may want to start with well-established companies offering English-speaking customer support.
9. Switching Your Car Insurance
In Germany, car insurance contracts usually auto-renew annually, and switching is allowed:
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By November 30: This is the cutoff date for giving notice if you want to switch by the end of the calendar year
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Within 14 days: After buying a new car or after receiving the annual premium notice
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After a claim: If your insurer raises the premium post-accident, you can cancel the policy
Comparison websites can help you find better rates or coverage options.
10. Electric and Hybrid Vehicle Insurance
Germany encourages eco-friendly transportation, and many insurers offer discounted premiums for electric and hybrid cars.
Benefits include:
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Lower maintenance costs
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Lower risk profiles
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Special coverage for charging equipment, battery packs, and fire protection
Electric car owners can also benefit from reduced road tax and access to low-emission zones in major cities.
11. Important Legal and Regulatory Bodies
Car insurance in Germany is regulated by:
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BaFin (Federal Financial Supervisory Authority): Supervises insurance companies
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German Insurance Association (GDV): Sets industry standards and publishes risk tables
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Stiftung Warentest: Independent consumer group that reviews insurance products
These bodies ensure consumer protection, financial solvency of insurers, and regulatory compliance.
Conclusion
Car insurance in Germany is more than just a legal requirement—it's a well-developed safety net that offers protection, peace of mind, and financial security for drivers. With a structured three-tier system, a strong regulatory framework, and a competitive market, drivers have many options to tailor coverage according to their needs. Whether you're a resident with a new car, a foreign student using a family vehicle, or a businessperson with a company car, understanding how German car insurance works is crucial to navigating the roads legally and safely. Taking the time to compare plans, understand your risk profile, and make