Car Insurance in Germany: A Complete Guide

Germany, known for its world-class automobile industry and the famous Autobahn network, has one of the most structured and highly regulated car insurance systems in Europe. Driving in Germany comes with great responsibility and legal obligations, and understanding the nuances of car insurance is essential for both residents and foreigners living or driving in the country. In Germany, car insurance is not just a formality—it’s a legal requirement. This comprehensive article will delve into the types of car insurance available, legal requirements, cost factors, how to choose a provider, and what makes Germany's system unique.

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1. Legal Requirement of Car Insurance in Germany

In Germany, car insurance is mandatory for all motor vehicles. Without valid insurance, a vehicle cannot be registered or driven on public roads. The law requires every car owner to have at least liability insurance (Kfz-Haftpflichtversicherung), which covers damages caused to others.

When registering a vehicle, the car owner must present a valid electronic insurance confirmation (eVB-Nummer) from their insurer. Without this, registration will be denied.

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2. Types of Car Insurance in Germany

There are three main types of car insurance policies available in Germany, and drivers can choose the coverage that best suits their needs and budget.

2.1 Third-Party Liability Insurance (Haftpflichtversicherung)

This is the minimum legal requirement and covers:

• Personal injury to others

• Property damage caused by the insured vehicle

• Financial losses suffered by third parties

However, this insurance does not cover any damage to your own vehicle or theft.

2.2 Partial Coverage (Teilkasko)

This is an optional upgrade to the basic liability insurance and covers:

• Fire and explosion

• Theft or attempted theft

• Damage from natural events (storms, hail, flooding)

• Broken glass (including windows and headlights)

• Damage caused by animals (e.g., marten bites)

• Short-circuit damage

Teilkasko is especially useful for those with older vehicles who want limited protection at a lower cost.

2.3 Comprehensive Insurance (Vollkasko)

This is the most complete coverage and includes everything in liability and partial coverage, plus:

• Damage to your own vehicle caused by an accident (even if it's your fault)

• Vandalism

• Hit-and-run incidents

• Accidents involving uninsured drivers

Vollkasko is typically recommended for new or expensive vehicles, lease agreements, and financed cars.

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3. Costs of Car Insurance in Germany

Several factors influence the cost of car insurance in Germany:

3.1 No-Claims Bonus (Schadenfreiheitsklasse - SF-Klasse)

The longer a driver goes without making a claim, the higher their SF class and the lower their premium. This bonus system is one of the most influential factors in premium calculation.

3.2 Age and Driving Experience

Younger drivers and those with less experience generally pay higher premiums due to higher statistical risk.

3.3 Type of Vehicle

The brand, model, engine size, and power affect the insurance group. Luxury or high-powered cars are more expensive to insure.

3.4 Location (Regionalklasse)

Your place of residence can influence rates. Urban areas with higher accident or theft rates usually mean higher premiums.

3.5 Annual Mileage

The more you drive, the higher the risk of an accident. Therefore, insurers often ask for your estimated annual mileage.

3.6 Use of the Car

Private use, commercial use, or mixed usage all affect the policy cost.

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4. Choosing a Car Insurance Provider

Germany has a competitive insurance market with dozens of insurers offering a wide range of policies. When choosing a provider, it’s important to consider:

• Price vs. coverage

• Customer service and reputation

• Digital access (apps and online claims)

• Availability of multilingual support for non-German speakers

• Flexibility in payment terms (monthly or annual)

• Cancellation terms (generally 1 month before end of the policy year)

Some popular German car insurance providers include:

• Allianz

• HUK-Coburg

• AXA

• DEVK

• Zurich

• CosmosDirekt

• DA Direkt

Comparison websites like Check24 or Verivox can help drivers compare plans quickly.

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5. Registration and the Role of eVB Number

When registering a vehicle in Germany, you need:

• Valid ID and proof of residence

• Proof of ownership (Fahrzeugschein and Fahrzeugbrief)

• Technical inspection report (TÜV)

• Proof of insurance (eVB number)

The eVB number is a digital confirmation from the insurance company that the car is insured. It is valid for a limited time and must be obtained before registration at the vehicle registration office (Zulassungsstelle).

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6. Roadside Assistance and Additional Add-Ons

Many insurance companies offer add-on services to enhance protection and convenience:

• Roadside assistance (Pannenhilfe)

• Replacement vehicle service

• Legal protection (Rechtsschutz)

• Bonus protection (Schutzbrief), which prevents loss of your SF class after a claim

• International coverage (Green Card for travel within Europe)

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7. Insurance for Foreigners and Expats

7.1 Temporary Visitors

If you're driving your foreign-registered car in Germany, make sure your existing insurance covers international use. Otherwise, you’ll need short-term insurance or Green Card insurance.

7.2 Residents and Long-Term Expats

Expats who register a car in Germany must obtain German car insurance. Some international insurers offer expat-friendly policies with English-speaking support.

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8. What to Do After an Accident

In case of an accident in Germany:

1. Stop immediately, secure the scene, and use a warning triangle.

2. Call emergency services if there are injuries or major damage.

3. Exchange contact and insurance information with other parties.

4. Take photos of the damage.

5. Inform your insurance company as soon as possible.

For minor accidents without injuries, it is not always necessary to call the police, but for any disputes or damage involving a third party, police involvement is recommended.

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9. Cancelling or Switching Insurance

Car insurance contracts in Germany typically last one year, and the renewal is automatic unless you cancel in writing by November 30. You can also switch insurers if:

• You sell your car

• You change your car

• Your insurer increases your premium

• You’re involved in a claim

Cancellation must be made in writing (by mail or email) and often requires proof of new insurance if you’re continuing to drive.

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10. Environmental Factors and Insurance Trends

Germany is actively promoting green mobility. Insurance companies are adapting by:

• Offering discounts for electric and hybrid vehicles

• Providing eco-insurance products that support climate-friendly initiatives

• Using telematics (driving behavior tracking) to offer discounts to safe drivers

Digitalization is also transforming the car insurance sector, with many providers now offering paperless contracts, mobile claims submission, and AI-driven premium calculation.

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Conclusion

Car insurance in Germany is not only a legal necessity but also a key aspect of responsible vehicle ownership. With a structured system offering various levels of coverage, drivers can tailor their policies to meet their needs and budget. While navigating the German car insurance landscape may seem complex at first—especially for newcomers—understanding the fundamentals helps in making informed choices. Whether you’re a local resident, an expat, or a business owner with company cars, choosing the right coverage ensures peace of mind on the road and compliance with the law.