Car Insurance in Germany: A Complete Guide for Drivers and Vehicle Owners

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Introduction

Germany is famous for its exceptional automotive culture, iconic car brands, and world-class highways like the Autobahn. But while driving in Germany can be a thrilling experience, it also comes with strict legal responsibilities—especially when it comes to car insurance.

Whether you're a resident, an expat, a student, or simply planning to drive during your stay, understanding Germany’s car insurance system is essential for legal compliance, financial protection, and peace of mind.

This guide covers the types of car insurance available in Germany, how the system works, what’s legally required, how to find the right policy, and key considerations for both locals and foreigners.

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1. Is Car Insurance Mandatory in Germany?

Yes. Car insurance is mandatory by law in Germany. No vehicle can be registered or driven on public roads without valid insurance coverage. At a minimum, you must have:

• Liability Insurance (Kfz-Haftpflichtversicherung)

Driving without insurance is a criminal offense and can result in hefty fines, loss of your driving license, or imprisonment.

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2. Types of Car Insurance in Germany

There are three main types of car insurance coverage in Germany:

A. Liability Insurance (Haftpflichtversicherung) – Mandatory

This is legally required and covers:

• Damage you cause to other people, vehicles, or property

• Injuries or death caused to other parties

It does not cover any damage to your own vehicle.

B. Partial Coverage (Teilkasko) – Optional

Includes liability plus:

• Theft or attempted theft

• Glass damage (windows, windshields)

• Fire, explosion, lightning strikes

• Storm, hail, flood damage

• Animal-related accidents (e.g., wild boar or deer)

Recommended for cars that are a few years old.

C. Comprehensive Insurance (Vollkasko) – Optional

Includes everything in Teilkasko plus:

• Damage to your own car, even if you caused the accident

• Vandalism

• Hit-and-run incidents

Vollkasko is commonly chosen for:

• New cars

• Leased or financed vehicles

• Luxury or high-value cars

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3. What Does Liability Insurance Cover?

The minimum required policy, Kfz-Haftpflicht, covers:

• Bodily injury: Up to €7.5 million

• Property damage: Up to €1.12 million

• Financial losses: Up to €50,000

Most insurers offer higher limits for better protection, which is strongly recommended.

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4. What Is Not Covered?

Standard liability insurance will not cover:

• Damage to your own car

• Mechanical failure

• Wear and tear

• Driving under the influence

• Damage caused by illegal activities

To protect your own vehicle, you need Teilkasko or Vollkasko.

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5. Choosing the Right Type of Insurance

The right choice depends on:

• Vehicle value

• Age of the car

• Your budget and risk tolerance

• Driving history

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6. How Much Does Car Insurance Cost in Germany?

Car insurance premiums vary based on:

• Driver’s age and experience

• Vehicle model, engine size, and power

• Postal code (city areas are more expensive)

• Driving record (accidents, claims)

• Annual mileage

• Deductibles (Selbstbeteiligung)

Average Costs (Annual Estimates):

• Liability only: €300–€600

• Teilkasko: €500–€900

• Vollkasko: €800–€1,500+

You can lower costs with a higher deductible, limited annual mileage, or choosing a garage-only coverage policy.

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7. The Bonus-Malus System (No-Claim Discount)

Germany uses a "Schadenfreiheitsklasse" (SF-Klasse) system:

• The longer you drive without an accident, the cheaper your premium

• Each claim-free year reduces your risk class

• If you make a claim, you may lose your SF class and pay higher premiums

This system rewards safe, responsible driving.

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8. Required Documents to Get Insurance

To get car insurance in Germany, you'll need:

• Vehicle registration certificate (Zulassungsbescheinigung Teil I & II)

• Personal ID or passport

• Driver’s license

• Bank details (for direct debit)

• eVB number (Elektronische Versicherungsbestätigung) – digital proof of insurance used for car registration

The eVB code is crucial when registering a new or used car and proves you have valid insurance in place.

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9. How to Buy Car Insurance in Germany

There are several ways to get car insurance:

• Directly from an insurer (online or by phone)

• Through a broker or agency

• Comparison websites like:

  • Check24

  • Verivox

  • Finanztip

Using comparison platforms helps you evaluate price, coverage, customer service, and user reviews.

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10. Best Car Insurance Companies in Germany

Some of the most reputable insurers include:

Most insurers provide 24/7 emergency support, English-language contracts, and online claims submission.

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11. Car Insurance for Expats and Foreign Drivers

If you're an expat, student, or temporary resident:

• You must have valid car insurance before registering a car

• EU driver’s licenses are accepted

• Non-EU licenses may need to be converted after 6 months

Some insurers specialize in services for non-German speakers. Look for:

• English-speaking customer support

• Digital apps for easier claims

• Monthly or short-term plans for temporary stays

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12. Canceling or Changing Your Car Insurance

In Germany, car insurance contracts usually run for 12 months. To cancel or switch providers:

• Provide written notice at least 1 month before the renewal date (usually December 31)

• After an accident or premium increase, you may have special cancellation rights

You can also change providers if:

• You buy a new car

• You move to a new region

• You sell your car

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13. Roadside Assistance and Additional Services

Many insurance policies offer optional add-ons, including:

• Roadside assistance (Schutzbrief)

• Legal protection (Rechtsschutzversicherung)

• Glass protection

• Towing and replacement car services

These are often bundled with Vollkasko or available for a small extra fee.

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14. Tips to Save Money on Car Insurance

• Compare quotes annually

• Bundle policies (car + liability/home insurance)

• Choose higher deductibles

• Limit annual mileage

• Avoid unnecessary extras

• Drive safely to build your no-claim bonus

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Conclusion

Car insurance in Germany is a legal requirement, a smart financial tool, and a vital part of vehicle ownership. Whether you're a long-term resident or a newcomer, choosing the right level of coverage ensures you're protected from unexpected accidents, damage, and liability costs.

From mandatory liability insurance to comprehensive packages, Germany offers a wide range of providers and plans. With a bit of research and comparison, you can find a policy that fits your needs and budget—while staying safe and legal on the road.