Car Insurance in Germany: Everything You Need to Know

Car insurance in Germany is not only a legal requirement but also a critical aspect of responsible vehicle ownership. Known for its efficient roads, high-speed autobahns, and automotive heritage, Germany has a well-structured system of vehicle insurance that every driver must adhere to. This article provides a comprehensive overview of car insurance in Germany, covering the types of insurance available, how to obtain a policy, costs involved, and tips for newcomers.

1. Legal Requirements for Car Insurance in Germany

In Germany, car insurance is mandatory by law. You cannot legally drive a car or even register it without proof of insurance. The minimum requirement is liability insurance (Haftpflichtversicherung), which covers damages you may cause to others—whether it’s injury to a person or damage to property.

Driving without insurance is considered a serious offense and can lead to heavy fines, license suspension, or even criminal charges in severe cases.

What’s Required?

• Motor vehicle liability insurance (compulsory)

• Proof of insurance when registering a car

• A valid driving license (EU or international)

2. Types of Car Insurance in Germany

German car insurance is typically divided into three main categories:

a) Liability Insurance (Haftpflichtversicherung)

This is the minimum legal requirement and covers:

• Injury or death caused to other people

• Damage to other vehicles or property

It does not cover any damage to your own vehicle. Liability insurance ensures that if you're responsible for an accident, the financial burden doesn't fall entirely on you.

b) Partial Coverage (Teilkasko)

This is a mid-level insurance policy that includes everything from liability insurance, plus additional protection such as:

• Theft or attempted theft

• Fire and explosion

• Natural disasters (storms, floods, hail)

• Glass damage (e.g., broken windshields)

• Animal collisions (especially with deer and wild boars)

Teilkasko is a popular choice among car owners, especially for used or moderately priced vehicles.

c) Fully Comprehensive Insurance (Vollkasko)

This is the most complete form of car insurance in Germany. It includes:

• All benefits of Haftpflicht and Teilkasko

• Coverage for damage to your own vehicle, even if the accident is your fault

• Vandalism

• Damage caused by unknown third parties

Vollkasko is highly recommended for new cars, leased vehicles, or those with higher value.

3. How to Get Car Insurance in Germany

Getting car insurance in Germany is a straightforward process but requires some documentation. Here’s what you’ll typically need:

a) Key Documents

• Valid passport or ID

• German address registration (Anmeldung)

• Valid driver’s license

• Vehicle documents (Fahrzeugschein and Fahrzeugbrief)

• Bank account in Germany (for monthly premium deductions)

b) Steps to Obtain Insurance

1. Compare insurance offers online or through brokers.

2. Choose a suitable policy and submit your documents.

3. Once approved, you'll receive an eVB number (Elektronische Versicherungsbestätigung) – a digital insurance code required for vehicle registration.

4. Take the eVB number to the vehicle registration office (Kfz-Zulassungsstelle) to register the car.

Many insurance providers offer online applications and instant eVB number generation, speeding up the process.

4. Cost of Car Insurance in Germany

Car insurance premiums in Germany vary significantly based on several factors:

a) Key Factors That Affect Cost

• Type of car (brand, horsepower, age)

• Driver’s age and experience

• City or region (urban areas usually have higher premiums)

• Annual mileage

• No-claims bonus (Schadenfreiheitsklasse or SF-Klasse)

• Parking location (garage or street)

• Marital status and number of drivers

b) Average Costs

• Liability insurance: €200–€500 per year

• Partial coverage: €300–€700 per year

• Fully comprehensive: €600–€1,200+ per year

Drivers with many years of accident-free driving benefit from significant discounts due to the SF-Klasse system, which reduces premiums over time.

5. Important Terms to Know

a) eVB Number

A unique code proving that your car is insured. Needed for registration.

b) Selbstbeteiligung (Deductible)

The amount you pay out of pocket in case of a claim. Higher deductibles often reduce your monthly premium.

c) SF-Klasse (No-Claim Bonus Level)

Each accident-free year improves your SF level, leading to cheaper insurance. Accidents can reduce your level.

d) Schadenmeldung (Claim Report)

If you have an accident, you must report it promptly to your insurer using a Schadensmeldung form.

6. Insurance for Foreigners and Expats

For new arrivals in Germany, getting car insurance can seem complex, but many companies offer English-speaking customer support and services tailored to expats.

a) Key Tips for Expats:

• Some providers may not accept foreign driving records, meaning you may start at a higher insurance rate.

• EU driving licenses are valid; non-EU licenses may need conversion after 6–12 months.

• Some insurance providers specialize in expat services—check for “expat-friendly car insurance Germany” online.

7. Switching or Canceling Car Insurance

You are allowed to switch your car insurance provider annually or under certain conditions (e.g., premium increase or after an accident).

a) Notice Period

Standard cancellation notice is one month before the end of the insurance year (typically by November 30th).

b) Mid-Year Cancellations

You can cancel mid-year if:

• Your insurer increases the premium

• You sell or deregister the car

• After a claim

Always ensure no gap in coverage when switching providers.

8. What to Do in Case of an Accident

If you're involved in a car accident in Germany, follow these steps:

1. Stay calm and ensure safety.

2. Use a warning triangle and wear a reflective vest.

3. Exchange details (insurance, registration, name) with the other party.

4. Take photos and note the accident location/time.

5. Call the police if injuries or major damage occurred.

6. Report the accident to your insurance company ASAP.

It’s advisable to keep a European accident report form in your car at all times.

9. Tips to Reduce Car Insurance Costs

• Drive safely and avoid claims to build SF-Klasse.

• Choose a car with a lower insurance class (Typklasse).

• Pay annually instead of monthly to save fees.

• Increase your deductible to lower premiums.

• Park your car in a garage if possible.

• Compare insurance offers regularly.

10. Leading Car Insurance Providers in Germany

Some of the major insurance companies include:

• Allianz

• HUK-Coburg

• AXA

• DEVK

• DA Direkt

• CosmosDirekt

• Check24 (insurance comparison portal)

Conclusion

Car insurance in Germany is a well-regulated and essential part of owning and driving a vehicle. Whether you're a local resident or an expat, understanding the system can save you time, stress, and money. From liability-only policies to full coverage plans, there are options to suit every need and budget. Always compare quotes, understand your coverage, and drive responsibly to make the most of your insurance policy.