CAR INSURANCE IN GERMANY: A COMPLETE GUIDE FOR DRIVERS AND EXPATS
Introduction
Germany is a country synonymous with automotive innovation, strict road safety regulations, and the world-famous Autobahn. Whether you're a German resident, a newcomer, or a visitor planning to drive, understanding car insurance in Germany is crucial—not just for legal compliance but also for your financial security.
Car insurance is not optional in Germany. You can’t legally register or drive a car without it. But beyond just meeting legal requirements, choosing the right insurance can save you money and stress in the long run. This article explores the types of car insurance available in Germany, what they cover, how premiums are calculated, and tips for choosing the best policy.
Is Car Insurance Mandatory in Germany?
Yes, car insurance is legally required in Germany. Every vehicle that uses public roads must have a minimum of liability insurance (in German: Kfz-Haftpflichtversicherung). Without it, registration is not possible, and driving without insurance is considered a criminal offense.
Types of Car Insurance in Germany
There are three main types of car insurance in Germany:
1. Liability Insurance (Haftpflichtversicherung)
This is the mandatory minimum. It covers damages and injuries you cause to others (people, vehicles, or property). However, it does not cover any damage to your own car or your own medical costs.
2. Partial Coverage Insurance (Teilkasko)
This includes all the protections of liability insurance, plus coverage for:
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Theft
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Fire or explosion
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Storm, hail, or flooding
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Broken glass
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Animal collisions
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Vandalism (to a limited extent)
It is typically chosen for older vehicles.
3. Comprehensive Insurance (Vollkasko)
This offers the highest level of protection, including everything in partial coverage and also:
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Damage to your car caused by your own fault
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Vandalism
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Hit-and-run cases
This is strongly recommended for new cars or leased vehicles.
How Car Insurance Premiums Are Calculated
Several factors determine the price of your car insurance in Germany:
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No-Claims Bonus (Schadenfreiheitsklasse): The more years you drive without accidents, the more discount you get.
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Age of the Driver: Younger and older drivers often pay more.
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Vehicle Type and Engine Power: More powerful or luxury cars cost more to insure.
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Address (Postal Code): Rates vary depending on where you live.
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Annual Mileage: More driving means more risk, which increases premiums.
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Where the Car is Parked: Garaged cars are less risky to insure.
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Driving History: Any past accidents or points on your license matter.
Required Documents for Car Insurance in Germany
To apply for car insurance, you need:
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Personal ID (passport or ID card)
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Valid driver’s license (EU or international)
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Vehicle registration documents (Zulassungsbescheinigung Teil I & II)
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Bank account information (for premium payments)
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Previous insurance records (especially for expats)
You will also receive an eVB number (electronic insurance confirmation), which is essential for registering your car.
Understanding the eVB Number
The eVB number is a digital proof from your insurance company confirming that your vehicle is insured. It is required when registering a vehicle at the local registration office (Zulassungsstelle).
The Bonus-Malus System (No-Claims Discount)
Germany operates a bonus-malus system. Each year you drive without filing a claim improves your Schadenfreiheitsklasse (SF class), giving you better rates. However, if you cause an accident and make a claim, your SF class may go down, increasing your premium.
Deductibles (Selbstbeteiligung)
Most policies include a deductible:
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Partial coverage (Teilkasko): usually €150
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Comprehensive coverage (Vollkasko): usually €300
Higher deductibles can lower your monthly premium but increase your out-of-pocket expenses during a claim.
Major Car Insurance Providers in Germany
Top insurance companies in Germany 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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VHV
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Gothaer
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ERGO
You can compare offers using online platforms like Check24 and Verivox.
Changing Your Car Insurance
You are allowed to change your car insurance:
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At the end of the contract term (usually annually)
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After a claim
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When your insurer increases your premium
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When you buy or register a new vehicle
To cancel, you must usually give at least one month’s notice before the policy renews.
Car Insurance for Foreigners and Expats
Foreigners can get car insurance in Germany with a valid EU or international driver’s license. However, some insurers may require conversion to a German license within 6–12 months. If you have driving experience abroad, request a letter from your previous insurer confirming your no-claims history—it may lower your premium.
Electric Cars and Insurance
Electric vehicles (EVs) are increasingly popular in Germany. Insurers offer special policies that cover:
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Battery damage
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Charging stations (wall boxes)
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Electric motor repairs
Many EVs enjoy discounted insurance rates due to government incentives and lower environmental risks.
What to Do in Case of an Accident
If you're involved in a car accident:
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Stay calm and secure the area (warning triangle, hazard lights)
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Check for injuries and call emergency services if necessary
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Exchange personal and insurance details
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Document the accident (photos, notes)
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Report to your insurance company immediately
In serious cases, call the police to report the incident.
Average Cost of Car Insurance in Germany
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Liability only: €200–€400/year
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Partial coverage: €400–€700/year
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Comprehensive: €700–€1,200/year
These are average estimates. Your final rate will depend on your driving profile and the insurance provider.
Conclusion
Car insurance in Germany is much more than just a legal obligation—it’s a system designed to protect you, your finances, and others on the road. Understanding the different types of coverage, knowing how pricing works, and choosing the right insurer are all essential to driving confidently in Germany.
Whether you’re a local driver or a newly arrived expat, make sure your car is properly insured before hitting the road. It could save you thousands—and give you the peace of mind you need to enjoy Germany’s exceptional driving experience.