Car Insurance in Germany: Everything You Need to Know

Germany, home of the Autobahn and birthplace of some of the world’s most iconic car manufacturers like BMW, Mercedes-Benz, Audi, and Volkswagen, has a deeply ingrained car culture. Unsurprisingly, car insurance in Germany is not only a legal requirement but a highly regulated and structured system that ensures road safety, personal accountability, and financial protection for drivers and vehicle owners alike.

In this article, we explore the key aspects of car insurance in Germany, including the types of insurance, legal obligations, average costs, major providers, and tips for expats or international drivers.

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1. Is Car Insurance Mandatory in Germany?

Yes, car insurance is mandatory in Germany. To legally register and drive a vehicle, you must have at least liability insurance (Kfz-Haftpflichtversicherung). This basic coverage protects against claims if you cause damage to another person, vehicle, or property while driving.

Without proof of valid insurance, you cannot obtain a license plate or register your vehicle. Driving without insurance is a serious offense that can lead to fines, license suspension, or even imprisonment.

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2. Types of Car Insurance in Germany

There are three main types of car insurance coverage in Germany:

a. Liability Insurance (Haftpflichtversicherung) – Mandatory

This is the minimum legal requirement for all vehicle owners in Germany. It covers:

• Personal injury to others

• Property damage

• Financial losses caused to others

However, it does not cover damage to your own vehicle or injuries to yourself as the driver.

b. Partial Coverage Insurance (Teilkasko)

This optional insurance expands on liability coverage and includes protection against:

• Fire, explosions, lightning, and storm damage

• Theft (including car and parts)

• Glass damage (e.g., windshield)

• Animal collision (commonly deer or wild boar)

• Vandalism (in some policies)

Teilkasko is usually more affordable than comprehensive insurance and is ideal for cars that are a few years old.

c. Comprehensive Insurance (Vollkasko)

Vollkasko provides the highest level of protection, including everything in Teilkasko plus:

• Damage to your own car due to accidents (even if it’s your fault)

• Vandalism by third parties

• Hit-and-run incidents

• Damage caused by uninsured drivers

This type of insurance is typically recommended for new or expensive vehicles, as it offers the broadest protection but comes at a higher cost.

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3. How Much Does Car Insurance Cost in Germany?

The cost of car insurance in Germany varies depending on several factors, such as:

• Driver’s age and experience

• Vehicle make and model

• Driving history (accidents, penalties)

• Annual mileage

• Location (urban areas often have higher premiums)

• Type of insurance chosen

Average annual premiums (2025 estimates):

• Liability-only (Haftpflicht): €250 – €500

• Partial coverage (Teilkasko): €400 – €800

• Comprehensive (Vollkasko): €700 – €1,200+

These prices can be lower or higher depending on discounts, deductible amounts, and insurer policies.

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4. The Bonus-Malus System (Schadenfreiheitsklasse)

One of the unique features of the German car insurance system is the Bonus-Malus system, also known as the Schadenfreiheitsklasse (SF-Klasse). It rewards drivers with lower premiums for every year they don’t file a claim.

Each year of claim-free driving increases your SF class, which can significantly reduce your premiums. For example, after 10 years without an accident, you may enjoy up to a 60-70% discount.

Conversely, causing an accident or making a claim can lower your SF class and increase your premium the following year.

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5. Getting and Registering Car Insurance

Here is a step-by-step guide to getting insured:

Step 1: Choose an Insurance Provider

Use comparison websites like Check24, Verivox, or Tarifcheck to compare offers from providers such as:

• Allianz

• HUK-COBURG

• AXA

• DEVK

• ERGO

• Gothaer

• DA Direkt

Step 2: Select Your Coverage

Choose between Haftpflicht, Teilkasko, or Vollkasko based on your vehicle value, driving habits, and budget.

Step 3: Get an eVB Number (Elektronische Versicherungsbestätigung)

Once you purchase insurance, your insurer will provide you with an eVB number, which you must present at the Zulassungsstelle (vehicle registration office) to register your vehicle.

Step 4: Vehicle Registration

With your eVB number, ID, proof of residence, and vehicle documents, you can register your car and receive your number plates.

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6. Car Insurance for Expats and Foreign Drivers

If you’re new to Germany, understanding the car insurance process can be overwhelming. Here are a few tips for expats:

• Some German insurers accept foreign driving history or no-claim certificates to help reduce your premiums.

• If you are importing a vehicle, ensure it meets German standards and pass the TÜV inspection.

• All documents are usually in German, but some providers offer English-language support or English contracts.

Expats should also ensure they are correctly registered with a residence permit (Anmeldung) and have a German bank account, which most insurers require for direct debit payments.

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7. Special Considerations

a. Electric and Hybrid Vehicles

Many insurers offer discounts or special packages for electric vehicles (EVs) and hybrids. Due to Germany’s push toward sustainability, coverage for EV-specific issues like battery damage is increasingly common.

b. Driving in Winter Conditions

Some insurers have special clauses related to winter tires. Driving without proper winter tires during snow or ice could affect your coverage or lead to partial denial of claims.

c. Black Box or Telematics Insurance

Younger drivers or those with limited experience may benefit from insurers that offer telematics policies based on real-time driving behavior. Safe driving habits can lead to lower premiums.

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8. Canceling or Changing Your Insurance

German insurance contracts usually run for a full year and automatically renew unless canceled. The typical notice period is one month before the end of the year (i.e., by November 30).

However, you can cancel mid-term under certain circumstances:

• After a premium increase

• After an accident

• If you sell or deregister your vehicle

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9. Accidents and Claims

If you're involved in an accident in Germany:

• Stay calm and secure the scene.

• Call 112 if there are injuries.

• Exchange insurance details with the other party.

• Take photos and file a claim with your insurer as soon as possible.

• Police involvement is recommended for major accidents or if fault is disputed.

Your insurer will guide you through the claims process, and it’s essential to be honest and timely to avoid legal issues.

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Conclusion

Car insurance in Germany is a well-structured and essential part of the driving ecosystem. Whether you're a German citizen or an international resident, understanding your insurance options, legal requirements, and cost-saving strategies will help you navigate the roads with confidence and financial security.

From the mandatory Haftpflicht to the comprehensive protection of Vollkasko, choosing the right policy depends on your individual needs and driving habits. By comparing providers, maintaining a clean driving record, and taking advantage of the Bonus-Malus system, you can enjoy affordable and effective coverage in one of Europe’s most car-centric nations.