🚗🇩🇪 A Complete Guide to Car Insurance in Germany

Germany is famous for its world-class engineering, autobahns without general speed limits, and a driving culture deeply rooted in precision and safety. But behind the thrill of driving a German car or exploring scenic roads lies a highly structured and regulated system of car insurance that every vehicle owner must navigate.

Whether you’re a local, an expat, or a newcomer planning to drive in Germany, understanding the car insurance system is essential — both legally and financially. Let’s dive into everything you need to know about car insurance in Germany.

---

📜 Is Car Insurance Mandatory in Germany?

Yes — car insurance is legally mandatory. Under German law, every registered vehicle must have at least third-party liability insurance (Kfz-Haftpflichtversicherung) to be allowed on public roads.

This insurance ensures that if you cause an accident, your insurer pays for damages and injuries to other people, their vehicles, or property. Without proof of valid insurance, you cannot register your car or get license plates.

---

⚙️ The Three Types of Car Insurance in Germany

German car insurance is divided into three main types, each offering different levels of coverage:

1️⃣ Third-Party Liability Insurance (Kfz-Haftpflichtversicherung)

• Mandatory by law

• Covers:

  • Damage you cause to other vehicles

  • Injury to other people

  • Damage to other people's property

• Does not cover:

  • Damage to your own car

  • Theft of your car

  • Vandalism or natural hazards affecting your car

Every driver must have this minimum coverage.

---

2️⃣ Partial Comprehensive Insurance (Teilkasko)

An optional upgrade covering more risks. It typically includes:

• Theft of your vehicle

• Fire and explosion

• Storm, hail, lightning, and flooding

• Broken glass (windows, headlights)

• Damage caused by animals (e.g., martens chewing cables)

It does not cover damages you cause to your own car in an accident.

---

3️⃣ Fully Comprehensive Insurance (Vollkasko)

The most complete coverage, recommended especially for new or high-value cars.
Includes everything from Teilkasko plus:

• Damage to your own car after an accident you caused

• Vandalism

• Sometimes, damages caused by unknown persons

Although not legally required, many car owners — especially those financing or leasing cars — choose Vollkasko for peace of mind.

---

💰 How Much Does Car Insurance Cost in Germany?

Car insurance premiums in Germany vary widely. Several factors determine the cost:

✅ Type of insurance: Haftpflicht is cheapest; Teilkasko and Vollkasko cost more.
✅ Vehicle: Engine size, age, brand, model, safety features.
✅ Driver: Age, driving experience, accident history.
✅ Place of registration: Living in a busy city may increase premiums.
✅ No-claims bonus (Schadenfreiheitsklasse): The longer you drive without claims, the cheaper your premium.

As a rough estimate:

• Haftpflicht: €300–€800 per year

• Teilkasko: €500–€1,000 per year

• Vollkasko: €800–€1,500+ per year

Prices can be much higher for young drivers or sports cars.

---

📉 Understanding the No-Claims Bonus (Schadenfreiheitsrabatt)

A unique feature of German car insurance is the no-claims discount system:

• For every claim-free year, your Schadenfreiheitsklasse (SF class) improves.

• The higher your SF class, the bigger your discount (can be over 50% cheaper).

• If you make a claim, your SF class drops, and premiums rise.

Tip: Even if you change insurers, you can usually transfer your SF class.

---

📝 What Does German Car Insurance Typically Include?

Beyond the basic legal cover, insurers often offer extra options, such as:

• Roadside assistance (Schutzbrief)

• Legal protection insurance (Verkehrsrechtsschutz)

• Coverage for rental cars

• Replacement vehicle in case of accident

• Protection against loss of no-claims bonus after your first claim

Each insurer structures these differently, so comparing offers carefully is important.

---

🌍 Car Insurance for Foreigners and Expats

If you’re an expat moving to Germany:

• You must get German car insurance before registering your car.

• EU driving licenses are usually valid; non-EU licenses often need to be exchanged after six months.

• If you import your car, you’ll need to get German license plates and proof of insurance (eVB-Nummer).

Some insurers offer services in English, making it easier for foreigners to navigate the process.

---

🧾 The eVB Number: Registering Your Car

When registering your car in Germany, you must show proof of insurance via an eVB number:

• Issued by your insurer, usually instantly by email or SMS.

• Without it, you can’t register your vehicle or get license plates.

The eVB number confirms that your car has at least third-party liability coverage.

---

⚖️ Legal Considerations and Coverage Limits

By law, German car insurance must cover:

• At least €7.5 million for bodily injury

• €1.12 million for property damage

• €50,000 for financial loss

Most insurers offer much higher standard limits (e.g., €100 million total coverage) to protect against serious claims.

Driving without valid insurance is illegal and can lead to:

• Heavy fines

• Vehicle confiscation

• In some cases, imprisonment

---

🧠 Tips for Choosing Car Insurance in Germany

✅ Compare offers: Use comparison websites like Check24 or Verivox.
✅ Choose the right deductible (Selbstbeteiligung): Higher deductibles lower premiums.
✅ Check coverage scope: Not all policies cover martens, glass damage, or wild animals equally.
✅ Consider your car's age: New cars often justify Vollkasko; older cars might be fine with Teilkasko.
✅ Pay annually: Yearly payments are cheaper than monthly.
✅ Watch for special discounts: For drivers over 25, garage parking, or limited annual mileage.

---

🔮 The Future of Car Insurance in Germany

Like many countries, Germany’s car insurance market is evolving:

• Usage-based insurance: premiums based on actual driving behavior.

• Digital insurers (insurtech): paperless contracts, fast claims processing via apps.

• Integration with autonomous driving and electric vehicles.

• Growing focus on environmental impact and lower premiums for EVs.

These trends aim to make insurance more flexible and fair.

---

🚧 What’s Not Covered by Default?

Even Vollkasko has exclusions. Common examples:

• Driving under the influence of alcohol or drugs.

• Using your car for racing.

• Intentional damage.

• Wear and tear or mechanical breakdown.

Always read your policy documents (Versicherungsbedingungen) carefully.

---

✅ Summary: What You Need to Know About Car Insurance in Germany

• Car insurance is mandatory: at least third-party liability.

• Optional upgrades: Teilkasko and Vollkasko.

• Premiums depend on car, driver, region, and no-claims history.

• eVB number is essential for car registration.

• No-claims bonus can dramatically reduce your premiums over time.

• Compare offers carefully to find the right balance between price and coverage.

• Driving without insurance is a serious offense.

---

✨ In Conclusion

Car insurance in Germany isn’t just about complying with the law — it’s about protecting yourself financially and giving you peace of mind on the road. While the system may feel complex at first, it’s designed to be fair, transparent, and based on responsibility.

Whether you’re cruising the autobahn or driving through quiet villages, the right insurance ensures you can fully enjoy Germany’s legendary driving experience — safely and confidently.