Car Insurance in Germany: A Comprehensive Guide for Residents and Expats
Car insurance in Germany is not only a legal requirement but also a critical component of responsible vehicle ownership. Germany, known for its robust automotive industry and the world-renowned Autobahn, has a well-organized insurance system designed to protect drivers, passengers, and property. Whether you’re a local resident or an expatriate planning to live in Germany, understanding the ins and outs of car insurance is essential for compliance, safety, and financial security.
This guide delves into everything you need to know about car insurance in Germany—from the types of coverage available to legal requirements, cost factors, and tips on how to choose the best insurance for your needs.
1. Legal Requirement: Car Insurance is Mandatory
In Germany, car insurance is legally mandatory. You cannot register a vehicle or drive legally on public roads without valid insurance. The minimum legal requirement is third-party liability insurance (Kfz-Haftpflichtversicherung).
This insurance covers:
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Personal injury to others
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Property damage
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Damage to other vehicles
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Legal fees in case of lawsuits
It does not cover any damage to your own vehicle. Driving without this insurance is a criminal offense and can result in fines, license suspension, 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 and covers damage or injury caused to third parties. It is compulsory and must be presented to register a vehicle.
What it covers:
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Injuries to other people
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Damage to other vehicles or property
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Legal costs if you're sued
What it doesn’t cover:
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Damage to your own car
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Theft or vandalism
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Accidents you cause that affect your own vehicle
b. Partial Coverage (Teilkasko)
This is optional insurance that provides additional protection beyond the basic third-party liability. It is often chosen for cars that are not brand-new but still valuable.
What it typically covers:
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Theft and attempted theft
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Fire and explosion
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Storm, hail, flooding, and natural disasters
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Broken windows or glass damage
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Damage from wild animals (like deer or boars)
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Electrical short circuits and cable fires
c. Comprehensive Coverage (Vollkasko)
This is the most complete form of car insurance and is often required if you’re leasing or financing a vehicle. It includes all coverage from Teilkasko plus protection against accidental damage you cause to your own car.
What it covers:
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Everything in third-party and partial coverage
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Vandalism
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Damage you cause in an accident (self-inflicted damage)
Comprehensive insurance is recommended for new or expensive cars and for individuals who drive frequently or park in public areas.
3. Factors That Influence Insurance Costs
Car insurance premiums in Germany depend on several variables:
a. Type of Vehicle
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Make, model, and horsepower
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Safety features
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Risk classification based on accident statistics
b. Age and Driving Experience
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Younger drivers and new license holders typically pay more
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Experienced, older drivers with a clean record get discounts
c. No-Claims Bonus (Schadenfreiheitsklasse)
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Discounts are given for each year without filing a claim
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The longer your claim-free period, the higher your bonus
d. Location
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Urban areas often have higher rates due to higher accident and theft risks
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Rural locations may offer cheaper premiums
e. Usage
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Annual mileage
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Whether the car is used privately or for business
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Number of drivers and their profiles
f. Deductibles
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Choosing a higher deductible can reduce monthly premiums
4. How to Register a Car with Insurance
Before you can register a car in Germany, you must show proof of insurance in the form of an eVB number (elektronische Versicherungsbestätigungsnummer). This digital insurance confirmation is issued by the insurance provider and is required by the vehicle registration office (Zulassungsstelle).
Steps to register:
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Choose and sign up with an insurance provider
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Obtain your eVB number
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Bring the eVB number and other documents (ID, proof of residence, TÜV inspection, etc.) to the registration office
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Complete the registration and receive your license plates
5. Switching Insurance Providers
In Germany, you can switch car insurance providers annually, typically by November 30th, for the following year. Some providers offer special cancellation rights under certain circumstances, such as:
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A premium increase
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After an accident
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Selling or deregistering your car
To switch:
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Compare policies using online portals like Check24 or Verivox
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Notify your old provider before the deadline
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Provide new insurance details to the Zulassungsstelle
6. International Drivers and Expats
Expats living in Germany should be aware of several key points:
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EU driver’s licenses are valid indefinitely (as long as they are not expired).
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Non-EU licenses are valid for 6 months; after that, you may need to convert to a German license.
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Your foreign no-claims bonus may be transferable—check with your German insurer.
Most insurance companies have English-speaking customer service and some even provide policies entirely in English, especially those tailored to the expat community.
7. Popular Insurance Providers in Germany
Here are some of the most well-known car insurance companies:
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Allianz – One of the biggest and most trusted providers
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HUK-Coburg – Known for competitive pricing
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AXA – Offers flexible policies and English support
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DEVK – Popular among public sector workers
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DA Direkt – Direct insurance, often cheaper
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CosmosDirekt – Online-based, affordable options
Comparison websites like Check24.de and Verivox.de are helpful for finding the best deals.
8. Tips for Saving on Car Insurance
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Drive safely to maintain a no-claims bonus
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Compare rates annually
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Bundle policies (e.g., home and auto insurance)
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Increase your deductible to lower premiums
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Avoid unnecessary coverage if your car is old
9. In Case of an Accident
If you’re involved in an accident in Germany:
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Stop immediately and secure the scene
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Use warning triangles and wear safety vests
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Call the police if there’s injury or major damage
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Exchange information with the other driver(s)
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Take photos and record details
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Notify your insurance provider as soon as possible
Failure to report an accident can affect your coverage or result in legal trouble.
Conclusion
Car insurance in Germany is a structured and highly regulated system that emphasizes driver responsibility and public safety. Understanding your insurance options and legal obligations is crucial, whether you’re a German citizen or a newcomer. With the right policy, you can drive confidently, knowing you’re protected against unforeseen events. Always compare providers, read the fine print, and ensure you meet all legal requirements—this will save you time, money, and stress in the long run.