Car Insurance in Germany: A Complete Guide
Germany, known for its efficient road network and iconic Autobahn, has a strong car culture. Whether you're an expat, student, or a German citizen, owning and driving a car in Germany comes with legal obligations—one of the most important being car insurance. This article provides a detailed overview of car insurance in Germany, covering types of insurance, legal requirements, costs, providers, and tips for choosing the right policy.
1. Is Car Insurance Mandatory in Germany?
Yes, car insurance is mandatory in Germany. Every motor vehicle that is registered and used on public roads must be insured. The legal minimum requirement is liability insurance (Kfz-Haftpflichtversicherung). Without valid insurance, you cannot register a vehicle, and driving an uninsured car is a criminal offense that can result in fines or even imprisonment.
2. Types of Car Insurance in Germany
There are three main types of car insurance in Germany:
a. Third-Party Liability Insurance (Haftpflichtversicherung)
This is the minimum legal requirement. It covers damages you cause to other people, their vehicles, or property while driving your car. It does not cover damage to your own vehicle or injuries to yourself.
Coverage includes:
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Personal injury (to others)
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Property damage (e.g., damaging someone else’s car)
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Financial loss
b. Partial Coverage Insurance (Teilkasko)
This is optional but commonly purchased. It includes all the benefits of third-party insurance, plus additional protections for your own car against specific risks.
Common coverage includes:
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Theft
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Fire or explosion
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Glass damage (e.g., windshield)
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Storm, hail, lightning, or flood
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Collisions with animals (usually wild animals)
c. Comprehensive Insurance (Vollkasko)
This is the most complete form of car insurance. It includes third-party liability, partial coverage, and also accidental damage to your own car—even if you are at fault.
Additional coverage includes:
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Vandalism
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Hit-and-run damage
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Accidents caused by the driver
Comprehensive insurance is often recommended for new or high-value cars, or when the car is leased or financed.
3. Costs of Car Insurance in Germany
Car insurance premiums in Germany vary based on several factors:
Factors affecting the cost:
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Driver’s age and experience: Young and inexperienced drivers pay more.
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Vehicle type and power: Sports cars cost more to insure.
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Location: Urban areas usually have higher premiums.
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Annual mileage: Higher mileage can lead to higher premiums.
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Insurance class (Schadenfreiheitsklasse): A no-claims bonus system that rewards accident-free years with lower premiums.
Average cost:
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Third-party liability: €200–€500 per year
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Partial coverage: €300–€700 per year
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Comprehensive insurance: €500–€1,500+ per year
Note: These are general estimates. Actual premiums can vary significantly.
4. What Is Schadenfreiheitsklasse (SF-Class)?
This is a no-claims discount system used by German insurers. Each year you drive without filing a claim, you move up one level (e.g., SF1, SF2, etc.), which reduces your premium.
Example:
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SF0 (first year): Standard premium
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SF5: ~30% discount
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SF10+: Up to 50%+ discount
However, if you cause an accident and make a claim, your SF-class may be downgraded, increasing future premiums.
5. Choosing a Car Insurance Provider in Germany
Germany has a competitive insurance market with many providers offering a range of packages. Some popular insurers include:
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Allianz
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HUK-Coburg
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AXA
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DEVK
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DA Direkt
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Check24 (comparison platform)
When choosing a provider, consider:
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Coverage details
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Customer reviews
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Premium costs
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Claims process
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English-language support (for expats)
Using comparison websites like Check24.de or Verivox.de can help you find the best deal.
6. How to Get Car Insurance in Germany
Step-by-step process:
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Collect vehicle details – car model, registration number, engine size, etc.
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Choose the type of coverage – third-party, partial, or full.
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Get quotes online – use comparison tools or contact providers directly.
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Select a provider and sign the policy.
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Receive eVB number (Elektronische Versicherungsbestätigung) – a unique code used to register your car at the local registration office (Zulassungsstelle).
The eVB number is essential; without it, you cannot register your vehicle.
7. Registration and eVB Number
When registering a car, the eVB number acts as proof of insurance. You’ll need the following documents:
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Valid ID or passport
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Proof of address (Anmeldung)
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Vehicle documents (Fahrzeugschein and Fahrzeugbrief)
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TÜV certificate (roadworthiness test)
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eVB number
You’ll receive your license plates after successful registration.
8. What to Do After an Accident
In the event of an accident, take the following steps:
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Ensure safety – turn on hazard lights, move to a safe area if possible.
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Call the police – especially if there are injuries or significant damage.
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Exchange information – names, insurance details, license plate numbers.
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Document the scene – photos, notes, witness contact info.
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Report to your insurer – usually within 7 days.
Your insurance company will guide you on the next steps regarding claims and repairs.
9. Tips for Expats and Foreign Drivers
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Most insurers offer support in German; however, some offer English-speaking agents or translated documents.
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International driving licenses are valid for up to six months. After that, you must obtain a German license.
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Expats may need to provide proof of prior driving experience to avoid starting at SF0 (the highest premium class).
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Leasing companies often require full (Vollkasko) coverage.
10. Canceling or Changing Your Insurance
Car insurance in Germany usually has a contract period of one year and renews automatically.
You can cancel:
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At the end of the year – by sending a written notice, typically by November 30.
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In case of vehicle sale or deregistration.
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If your provider raises premiums.
Always get written confirmation of cancellation.
Conclusion
Car insurance in Germany is not just a legal requirement—it's a crucial part of responsible vehicle ownership. With various coverage options, a structured no-claims system, and many providers to choose from, it's important to assess your personal needs, driving habits, and budget before selecting a policy.
Whether you're a new driver, an expat, or a seasoned road user, understanding how the system works will help you make informed decisions, save money, and stay protected on the road.