Car Insurance in Germany: A Comprehensive Guide for Drivers
Germany is known for its advanced infrastructure, precision engineering, and strong legal system, especially when it comes to automobiles. As the birthplace of the modern car and home to famous manufacturers like BMW, Mercedes-Benz, Audi, and Volkswagen, driving in Germany is both a privilege and a responsibility. One of the key responsibilities for drivers is securing car insurance.
This article provides an in-depth look at car insurance in Germany, including the types of coverage available, legal requirements, cost factors, procedures for foreign drivers, and more. Whether you’re a local, an expat, or a temporary resident planning to drive in Germany, understanding the country’s car insurance system is essential.
Is Car Insurance Mandatory in Germany?
Yes. In Germany, car insurance is mandatory by law. You cannot register a vehicle without providing proof of at least the minimum required coverage. Driving without insurance is a criminal offense and can result in severe penalties, including fines, license suspension, and even imprisonment.
The Three Types of Car Insurance in Germany
Car insurance in Germany is categorized into three main types, each offering different levels of protection:
1. Haftpflichtversicherung (Liability Insurance) – Mandatory
This is the basic legal requirement for all car owners. It covers:
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Damages to other vehicles
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Injuries to other people
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Property damage caused by your vehicle
However, it does not cover:
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Damage to your own vehicle
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Theft
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Vandalism
This insurance ensures that if you're at fault in an accident, the other party is compensated.
2. Teilkasko (Partial Coverage)
This is an optional upgrade from basic liability. It includes:
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Theft of the vehicle
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Fire and explosions
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Damage from natural disasters (hail, storms, floods)
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Broken glass (e.g., windshield damage)
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Damage caused by animals (e.g., rodents, deer)
Teilkasko is ideal for those with older vehicles or who want coverage against natural events or theft without paying for full coverage.
3. Vollkasko (Comprehensive Coverage)
Vollkasko includes all of the above, plus:
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Accidental damage to your own vehicle, even if you're at fault
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Vandalism
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Hit-and-run incidents where the other party is unknown
This is the most comprehensive form of insurance and is highly recommended for new cars, leased vehicles, or high-value automobiles.
Cost of Car Insurance in Germany
Car insurance costs in Germany vary depending on a number of factors, including:
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Type of insurance (liability, partial, or full)
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Driver’s age and experience
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Driving record and accident history
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Vehicle type and value
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Engine size and horsepower
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Annual mileage
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Location (urban areas may have higher premiums)
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No-claims bonus (Schadenfreiheitsklasse)
For a typical driver with a clean record, basic liability insurance may start around €300–€500 annually, while full comprehensive insurance could range from €700 to €1,500+, depending on the factors above.
The No-Claims Bonus System (Schadenfreiheitsrabatt)
Germany rewards safe drivers with a no-claims discount system. Each year without filing a claim increases your Schadenfreiheitsklasse (SF-Klasse), which lowers your insurance premium.
For example:
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SF 0 = New drivers, high premium
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SF 5 = 5 years claim-free, reduced premium
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SF 10+ = Significant discounts
If you have an accident and file a claim, your SF-Klasse may drop, resulting in higher premiums.
Required Documents for Car Insurance
To register a car and get insured in Germany, you’ll need:
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Vehicle registration papers (Zulassungsbescheinigung Teil I & II)
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Valid driver’s license
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Proof of identity and residence
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IBAN/bank details for direct debits
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eVB number (Elektronische Versicherungsbestätigung) – This is an electronic insurance confirmation code issued by your insurance provider
The eVB number is essential for vehicle registration at the KFZ-Zulassungsstelle (car registration office).
How to Choose a Car Insurance Provider
There are many insurance companies in Germany, both local and international. Major providers 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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ERGO
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Gothaer
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Zurich
When choosing an insurer, consider:
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Coverage options
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Price and premiums
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Customer service and claims handling
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Flexibility with international licenses (if you’re a foreigner)
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Online tools and ease of use
Price comparison websites (like Check24 or Verivox) are commonly used by residents to compare offers and switch insurers.
Car Insurance for Expats and Foreigners
Expats living in Germany or foreign drivers who plan to stay longer than six months are generally required to register their vehicles locally and switch to German insurance.
Important considerations:
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If you bring a foreign vehicle, it must pass a technical inspection (TÜV) and meet emissions standards.
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You must provide proof of residence (Anmeldung) to register a vehicle and get insurance.
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Many German insurers may require you to convert your foreign driver’s license after six months to continue coverage.
If you are new to Germany and don’t have a German driving history, insurers may classify you as a high-risk driver, resulting in higher premiums.
What Happens After an Accident?
In the event of an accident:
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Secure the scene and ensure safety
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Call the police (especially if there are injuries or disputes)
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Exchange insurance and contact details
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Take photos of damage and the scene
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File a claim with your insurer promptly
If you're found at fault, your liability insurance covers the other party’s damage, and your SF-Klasse may be downgraded.
Temporary Car Insurance (Kurzzeitversicherung)
For short-term use, Germany offers Kurzzeitkennzeichen (temporary license plates) with insurance valid for up to five days. This is useful for:
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Exporting cars
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Test drives
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Vehicle transport
Short-term insurance is available from specific providers and usually costs between €50 and €100.
Green Card for Driving Abroad
If you plan to drive your German-registered car in another country, especially outside the EU, you may need a Green Card (international motor insurance certificate), available from your insurer. It confirms that your vehicle has valid liability insurance in participating countries.
Canceling or Changing Insurance
You can switch or cancel your insurance:
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Annually, with one month’s notice before the end of the contract (usually December 31)
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When selling your car
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After a claim, if you're unhappy with how it was handled
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If your premium increases without a change in risk
The process is straightforward and often done online.
Conclusion
Car insurance in Germany is not just a legal requirement — it’s a key part of ensuring safety and financial protection for drivers and others on the road. The German system offers multiple layers of coverage, from mandatory liability to full comprehensive protection, allowing drivers to tailor policies to their needs.
Understanding the different types of insurance, how costs are calculated, and what to expect as a foreign driver or resident can help you navigate the system smoothly and make informed decisions.