Complete guide to car insurance in Germany
In Germany, car insurance (Kfz-Versicherung) is mandatory, and without it, you cannot register and drive your vehicle. Car insurance in this country includes Haftpflicht insurance for third-party liability, Teilkasko insurance for partial coverage, and Vollkasko insurance for comprehensive coverage. The cost depends on factors such as age and driving experience, location, and the value of the car. For example, the average annual insurance premium for liability insurance in 2024 is around 258 euros, 329 euros for comprehensive coverage, and 85 euros for partial coverage. In this article, we will guide you through all the details about car insurance in Germany.
Is car insurance mandatory in Germany?
Car insurance is essential and mandatory for driving in Germany. After purchasing a car in Germany, every individual must legally obtain car liability insurance according to the car's value in Germany. Additionally, it is mandatory to have liability insurance for registering a car. According to German government regulations, electronic confirmation of car insurance (eVB) from the vehicle registration office is required for car registration.
How to apply for car insurance in Germany
To apply for car insurance in Germany, you need to provide the following documents and information to an insurance agency:
- German driving license number
- Personal ID (national ID)
- Personal driving history information
- Details of your German bank account (if paying fees via direct debit by the insurance agency)
- Documents related to the purchase of the vehicle (some insurers may require this)
Most insurance agencies or companies in Germany offer the option to purchase car insurance online. After receiving car insurance in Germany through this method, you can receive your insurance details electronically within 24 hours.
To complete your car insurance file after purchasing insurance, you will need the following information:
- Insurance number or eVB
- Insurance policy information
- EU Accident Statement Form to be used in case of any driving accidents.
Car insurance cost in Germany
The cost of car insurance in Germany depends on various factors such as age and driving experience, engine size of the car, etc. According to the official report of the German Insurance Federation (GDV), the average annual insurance premium for liability insurance in 2024 is around 258 euros, for comprehensive coverage 329 euros, and for partial coverage 85 euros. These figures may vary depending on individual circumstances.
Read more: Cost of Living in Germany
Documents required for insuring a car in Germany
To purchase car insurance in Germany, you are required to provide the following documents:
- Personal identification: This includes your German driver's license number, which will be required to prove your identity and ownership of the vehicle.
- Driving history information: Your driving history information includes the number of years you've been driving, the date you obtained your driver's license, experience in other countries, and any driving violations.
- Bank account details: German bank account information is required for paying the insurance premium.
- Vehicle purchase documents: To register the vehicle for insurance, you need to provide documents related to the purchase of the vehicle, including the purchase invoice, ownership document, and vehicle registration certificate.
It is very important to consider the nature of liability insurance in Germany, as this type of insurance is considered the cheapest and most basic type of car insurance. Payment of the insurance premium is usually done annually or monthly, and it is recommended that if you have multiple vehicles, you insure them with one insurance company to reduce costs.
Types of car insurance in Germany
Car insurances in Germany have different types, each of which we will fully explain below.
Third-party insurance (Haftpflicht)
Third-party car liability insurance (Haftpflicht) in Germany, unlike other insurances, covers damages caused to individuals or their assets. This type of insurance covers your liability if you cause damage to others; however, it does not cover damages to your own car or your health.
Since you are fully responsible for damages to others, obtaining this type of insurance in Germany is legally mandatory. Only 20% of German cars have this type of insurance, mostly including old cars with low value, while the remaining 80% of cars use other insurances, including comprehensive insurance to cover damages.
Partial coverage insurance (Teilkasko)
Partial coverage car insurance (Teilkasko), in addition to third-party liability insurance coverage, includes coverage for the following damages:
- Fire or explosion;
- Theft and robbery;
- Damages caused by natural events such as storms, hail, floods, and lightning;
- Damage to the car's wiring due to a short circuit;
- Broken glass such as the front windshield or its breakage;
- Accidents involving collisions with wild animals or damage to the car's internal wiring by animals such as raccoons;
- Damages caused by lightning or to a specified ceiling.
With these conditions, Teilkasko insurance does not cover damages such as scratches on the body or the breaking of side mirrors.
Comprehensive coverage insurance (Vollkasko)
Comprehensive car insurance (Vollkasko) covers almost all possible cases. In addition to car liability insurance and partial coverage insurance, this type of insurance includes additional coverages such as damages and losses incurred to your personal car (even if you are at fault in an accident). Additionally, in the event of an accident and the driver fleeing the scene without informing the police, this insurance still covers all damages.
Most cars with a value of more than 15,000 euros have comprehensive car insurance or Vollkasko. However, it should be noted that this type of car insurance in Germany is considered the most expensive type of car insurance among car insurances.
Breakdown and damage insurance (Schutzbriefversicherung)
This insurance covers your expenses when your car is damaged or breaks down. When, for any reason, an accident occurs and your car needs to be taken to a repair shop for repairs, this insurance also provides you with the cost of renting a replacement car.
No-claims discount insurance (Schadenfreiheitsrabatt – SFR)
This insurance is issued for cars that are imported into Germany from outside the country and have foreign insurance. In fact, this insurance is a letter that is issued in the country of origin of the car insurance and is provided to the driver and owner, and accompanies the car to Germany. With this letter, the cost of car insurance in Germany will be slightly cheaper.
How to decide which car insurance to get?
To decide on the type of car insurance in Germany, it is best to talk to an insurance broker and consult with them about the details of the insurances. Official insurance brokers in Germany can help you have a better driving experience in the country. By offering a variety of prices for different types of insurances, they assist you in choosing insurance that fits your budget.
After selecting the appropriate insurance for your car, you will receive an eVB number or a car insurance number in Germany, the issuance of which takes less than one working day. This number is for when you want to register your car in the vehicle registration system or Kfz-Zulassungsstelle.
Car insurance in Germany covers how much damage?
Car insurance in Germany covers a maximum amount of damages that, according to relevant laws, allows local individuals to continue their daily lives without worrying about the financial risks associated with driving accidents. According to these laws, the following are the minimum coverage amounts for car liability insurance for each German citizen:
1. Personal injury insurance up to a maximum of 7.5 million euros;
2. Property damage insurance up to a maximum of 1.12 million euros;
3. Financial loss insurance up to a maximum of 50,000 euros.
Car insurance companies in Germany
Some car insurance companies and brokers in Germany offer favorable conditions to immigrants to make the process of insuring their cars easier and more affordable. After immigrating to Germany and obtaining legal residency in this country, you can get help from the following companies:
- MW Expat Solutions car insurance brokerage, which provides car insurance in English and offers a 45% discount, is a suitable option for immigrants.
- DA Direct brokerage;
- CosmosDirekt brokerage;
- R+V brokerage;
- .AXA insurance brokerage.
What is the best car insurance in Germany?
With around 91 car insurance companies in Germany, choosing the best car insurance can be somewhat challenging; however, since each agency offers different conditions and discounts, it is not easy to determine which one is the best.
To choose the best car insurance in Germany, you can use online tools such as Tarifcheck. This website provides you with the possibility to calculate the transparent costs of car insurance and helps you choose insurance that is more compatible with your needs and budget.
Insurance companies providing motorcycle insurance in Germany
Some of the reputable motorcycle insurance providers in Germany are as follows:
● Helvetia Versicherungen;
● DA Direkt Insurance;
● BarmeniaDirekt Versicherungen.
Helvetia Versicherungen is one of the reputable and well-known insurance companies in Germany, offering a variety of services in various insurance fields. This company has a considerable history and experience in the insurance industry.
DA Direkt Insurance is also one of the most familiar insurance companies in Germany, specializing exclusively in motorcycle and car insurance. By providing suitable insurance services and competitive prices, this insurer has a reputable position in the German car insurance market.
BarmeniaDirekt Versicherungen is another reputable insurance company in Germany that provides its customers with reliable and trustworthy services by offering comprehensive packages and quality services.
In case of a car accident in Germany, how can we use car insurance?
In case of a car accident in Germany, to use the insurance, you need to take the following steps:
1. Contact the police: Call 112 (German police emergency number) and report the details of the accident.
2. Prepare an accident report: Provide a European Accident Report (Europäischer Unfall Bericht). In this report, write down details such as the name, address, and license plate number of the other party.
3. Contact the insurance hotline: Contact the hotline of car insurance companies in Germany or Zentralrat der Autoversicherer. These centers can help you obtain the insurance information of the other party involved in the accident.
4. Keep documents: Keep all documents and records related to the accident, including the accident report and any communication with the insurance company.
5. Legal consultation: If needed, consult with a specialized lawyer or legal advisor in the field of traffic accidents to ensure that your rights are protected and not forfeited.
Conditions for canceling car insurance in Germany
To cancel car insurance in Germany, whether you intend to change your insurance company or want to cancel your insurance altogether, you should consider the following:
Cancellation of car insurance as usual
If you have no issues with your current insurance company, your car insurance will automatically be renewed after one year. If you do not wish to receive services from this insurer, you must inform the insurance company of your cancellation request.
Cancellation of car insurance under special circumstances
If you need to change your insurance company, you can notify the insurance company up to one month before the expiration of your insurance, and you do not need to provide a specific reason for this change.
If your insurance company has increased your insurance premium for any reason, you can send a cancellation letter to the insurance broker within one month. If you sell your insured vehicle, you can cancel the insurance by providing a letter and a document of the vehicle sale.
Cancellation of insurance in the event of an incident
If, in the event of an incident, you are not satisfied with the conditions and procedures of the company, and you have provided financial resources by the insurer, you can request the cancellation of the insurance. However, until the cancellation of the insurance is notified, all insurance rights and obligations must be fulfilled.
Closing Remarks
According to the laws enacted in Germany, all drivers and car owners in the country are obligated to have car insurance coverage. You cannot use any vehicle in Germany without registering and insuring it, and there are strict laws regarding this matter. Even if you bring your car from outside the country and insure it in its country of origin, you are required to insure the vehicle again in Germany.
The price of insurance in Germany depends on various factors. These factors include the driver's age, the age of the vehicle, the driver's experience, the place of residence (the city where the driver lives or where the car is mostly used), driving history and insurance service usage, the value and power of the engine. You can use the services of various German insurance companies for car insurance in Germany and reduce your insurance costs through different methods.
FAQs
- How much is the car insurance fee in Germany?
The average annual insurance fee in 2024 for liability insurance is approximately 258 euros, for comprehensive coverage 329 euros, and for partial coverage 85 euros.
- Which are the cheapest car insurance companies in Germany?
The cheapest car insurance providers in Germany include MW Expat Solutions car insurance brokerage, which provides car insurance in English and offers a 45% discount, making it a suitable option for immigrants. Additionally, DA Direct brokerage, CosmosDirekt brokerage, R+V brokerage, and AXA insurance brokerage are affordable options for car insurance.
- Is car insurance mandatory in Germany?
Yes, car insurance is essential and mandatory for driving in Germany. Anyone who owns a car must legally have car liability insurance.
- How many types of car insurance are there in Germany?
The types of car insurance in Germany include third-party liability insurance (Haftpflicht), partial coverage insurance (Teilkasko), comprehensive coverage insurance (Vollkasko), breakdown and damage insurance (Schutzbriefversicherung), and no-claim bonus insurance (Schadenfreiheitsrabatt – SFR).
- What factors affect the final insurance cost?
After purchasing a car in Germany, the cost of car insurance depends on factors such as the driver's age and driving experience, the location and price of the car in Germany.
- How can I reduce my car insurance costs throughout the year?
To reduce car insurance costs in Germany, methods such as using insurance deductibles, paying annual insurance costs, reducing mileage, improving driving history, safe driving, contracting with reputable repair shops, tax benefits, and smart renewal choices can greatly help.
- Can I use car insurance from another country in Germany?
Yes, drivers from European Union (EU) countries and European Free Trade Association (EFTA) countries can also use their own country's car insurance in Germany. Additionally, individuals living outside the European Union who have an International Green Card can use their car insurance with the approval of German legal authorities.
