Car Insurance in Germany: A Comprehensive Guide
Germany is known for its exceptional road infrastructure, high-speed autobahns, and deep-rooted car culture. With renowned automotive giants like BMW, Mercedes-Benz, Audi, and Volkswagen, it’s no surprise that vehicle ownership is a common part of life in Germany. However, owning and operating a vehicle in the country comes with strict legal obligations—foremost among them is car insurance.
This guide provides a detailed overview of car insurance in Germany, including its legal structure, types of coverage, providers, costs, and tips for choosing the right policy. Whether you're a German citizen, a resident, or an expat planning to drive in Germany, understanding how car insurance works is essential for staying legal and protected on the road.
Is Car Insurance Mandatory in Germany?
Yes. Car insurance is legally required for all vehicles registered in Germany. Without it, you cannot register your car, obtain license plates, or drive on public roads.
The minimum legal requirement is third-party liability insurance (Haftpflichtversicherung). Driving without insurance in Germany is a criminal offense and can lead to severe penalties, including fines, license suspension, or even imprisonment in serious cases.
Types of Car Insurance in Germany
Car insurance in Germany is typically divided into three categories:
1. Third-Party Liability Insurance (Haftpflichtversicherung)
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Mandatory by law
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Covers damages you cause to others (people, vehicles, property)
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Does not cover your own vehicle
This is the minimum coverage required and is sufficient for legal driving. It typically includes:
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Personal injury compensation
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Property damage
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Legal costs
2. Partial Coverage Insurance (Teilkasko)
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Optional, but highly recommended
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Includes everything in third-party liability
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Also covers specific damages to your own car, such as:
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Fire and explosion
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Theft
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Storm, hail, flood, or natural disasters
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Broken windows and vandalism
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Collisions with animals (especially deer and wild boars)
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Teilkasko is especially popular for slightly older or mid-range vehicles.
3. Comprehensive Insurance (Vollkasko)
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Optional, full-coverage policy
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Includes all benefits from third-party and partial insurance
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Also covers:
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Damage to your own car (even if it’s your fault)
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Vandalism
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Hit-and-run incidents
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Accidents caused by others when the offender cannot be identified
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Vollkasko is often required if the car is leased or financed through a bank. It's also ideal for new or expensive vehicles.
What’s Not Covered?
Even with Vollkasko, there are exclusions. These can include:
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Drunk or reckless driving
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Unlicensed drivers
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Participation in illegal races
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Damage caused by deliberate acts
Reading the fine print and understanding exclusions is crucial before choosing a policy.
Additional Optional Add-Ons (Zusatzleistungen)
German insurers also offer optional extras, including:
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Roadside assistance (Schutzbrief)
Towing, breakdown service, accommodation during long-distance emergencies -
No-claims bonus protection (Rabattretter)
Maintains your discount even after an accident -
Passenger accident insurance (Insassenunfallversicherung)
Covers injuries to passengers in your vehicle -
Legal protection insurance (Verkehrsrechtsschutz)
Covers legal fees and lawyer costs in the event of a traffic dispute
Car Insurance Costs in Germany
The cost of car insurance in Germany depends on several factors, including:
1. Vehicle Type (Typklasse)
Cars are categorized into classes based on how often they are involved in accidents or theft. A more expensive or frequently stolen model will result in higher premiums.
2. Driver Profile
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Age and gender
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Years of driving experience
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Accident history
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Number of drivers on the policy
3. Location (Regionalklasse)
Urban areas with high traffic density (like Berlin or Munich) tend to have higher premiums due to more frequent accidents and thefts.
4. Driving Record (Schadenfreiheitsklasse)
This is your no-claims class. The longer you drive without making a claim, the cheaper your insurance gets. Discounts can go as high as 80% for long-term accident-free drivers.
5. Mileage (Kilometerleistung)
Fewer kilometers driven per year usually equals lower premiums.
6. Garage Parking vs. Street Parking
Insurers often offer lower rates if you park in a secure garage.
Average Annual Costs (2025 Estimates):
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Third-party insurance only: €300–€600/year
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Partial coverage (Teilkasko): €500–€1,000/year
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Comprehensive (Vollkasko): €800–€1,500/year
How to Get Car Insurance in Germany
1. Gather Required Information
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Vehicle registration documents (Fahrzeugschein)
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Your German driving license
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Proof of previous no-claims bonuses (if transferring from another country)
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Personal ID and address
2. Choose a Provider and Plan
3. Get an EVB Number (Elektronische Versicherungsbestätigung)
This is a digital insurance confirmation code that proves you have coverage. You’ll need this code to register your car at the local vehicle registration office (Zulassungsstelle).
4. Register Your Vehicle
Bring your EVB code, personal ID, proof of residence, and vehicle documents to the Zulassungsstelle.
Major Car Insurance Providers in Germany
Germany has a wide range of car insurance providers, including:
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HUK-COBURG
One of the most affordable and popular for locals -
Allianz
Germany’s largest insurer, offering full-service packages -
AXA
Known for strong international support and digital services -
DEVK
Offers competitive rates and additional benefits -
DA Direkt (Zurich)
Good for expats due to English-language support -
CosmosDirekt
Online insurer with flexible plans and cost-efficient pricing
Comparison platforms like Check24, Verivox, and Finanztip can help you compare premiums and features quickly.
Car Insurance for Expats and Foreigners
If you’re an expat moving to Germany, it’s important to understand local rules:
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Foreign Licenses: EU licenses are accepted. Non-EU licenses must be exchanged for a German one after six months.
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Transferring No-Claims Bonus: Some German insurers accept foreign no-claims history, especially from other EU countries, the UK, or North America.
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English Support: Companies like DA Direkt and Allianz offer English-speaking customer service and contracts.
Tips for Reducing Car Insurance Costs
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Opt for a higher deductible (Selbstbeteiligung) to reduce premiums
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Park in a secure garage
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Bundle your car insurance with home or liability insurance for discounts
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Use dashcams or anti-theft devices to show added security
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Avoid unnecessary add-ons
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Compare renewal offers yearly—loyalty is not always rewarded in the German insurance market
What to Do in Case of an Accident
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Secure the Scene
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Use warning triangle
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Turn on hazard lights
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Call the Police if there’s injury, major damage, or a dispute
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Exchange Details
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Name, license plate, insurance number
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Take Photos and document everything
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Inform Your Insurance Company as soon as possible
Conclusion
Car insurance in Germany is more than just a legal formality—it's a well-structured system designed to protect drivers, pedestrians, and property. With a wide array of coverage options, insurance tiers, and providers, it’s crucial to understand your needs and shop carefully. Whether you drive a compact city car in Berlin or a luxury sedan on the Autobahn, the right insurance policy ensures safety, legal compliance, and peace of mind on the road.
As Germany continues to digitize and innovate in the insurance space, getting and managing car insurance is becoming more accessible, even for non-native speakers. By comparing providers, understanding the legal framework, and maintaining a good driving record, drivers can enjoy both security and savings.