Car Insurance in Germany [English Guide 2024] (2024)

If you’re planning to drive in Germany—whether you’re leasing, renting, or owning a car—you’ll need to acquaint yourself with the country’s car insurance landscape. Understanding the intricacies of car insurance in Germany isn’t just a legal requirement; it’s also a practical necessity that can save you a lot of headaches (and potentially a lot of money) down the road.

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Today, we’ll delve into the different types of car insurance available in Germany, how to choose an insurance provider that best suits your needs, the process for applying for coverage, and other crucial aspects.


  • Legal car insurance is mandatory for driving in Germany.
  • The main types of car insurance are Haftpflichtversicherung, Teilkasko, and Vollkasko.
  • Numerous factors like age, driving history, and type of vehicle influence your premium rates.
  • The application process can be conducted both online and in-person.
  • Understanding key German insurance terms can ease the application process.

Legal Requirements for Car Insurance in Germany

When driving a vehicle in Germany, having car insurance isn’t optional—it’s a legal necessity. When you register your vehicle, you must show proof of insurance. Failing to do so can result in fines and even legal consequences, not to mention the significant financial risks involved in case of an accident.

If you’re bringing a car into Germany from another country, it’s equally important to ensure that your existing insurance is compliant with German law. Many insurance policies from other EU countries meet the minimum requirements, but if you’re from outside the EU, you’ll likely need to purchase a policy that satisfies German regulations.

Types of Car Insurance in Germany

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This guide will break down the types of coverage available for car insurance in Germany, so you can make a choice that aligns perfectly with your needs and circ*mstances.

Third-Party Liability Insurance (Haftpflichtversicherung)

This is your essential, legally mandated insurance coverage. Third-Party Liability Insurance will cover the damages you may cause to someone else’s property, vehicle, or even their medical costs, in case of an accident where you’re at fault. It’s worth noting that this insurance does not cover damages to your own vehicle or your medical expenses; it solely protects you against claims from others.

The assurance that you won’t be financially crippled in the event of causing an accident can be quite liberating. When shopping for this type of insurance, you’ll find that most companies offer similar baseline coverage due to regulatory standards. Therefore, while you can’t skip out on this, you can shop for the best premium rates.

Partial Coverage Insurance (Teilkasko)

While not legally required, Partial Coverage Insurance offers a good middle ground for those looking for more than the basic coverage without going all out. It covers a range of issues such as theft, fire, glass breakage, and damage from natural disasters like storms or hail.

This type of coverage does not protect you from damages arising from an accident that you cause; for that, you’d need to have Comprehensive Coverage. Nonetheless, it offers a broader safety net than Third-Party Liability Insurance, and if you’re driving a vehicle that’s not brand-new but still holds significant value, Teilkasko may be a wise choice.

Comprehensive Coverage (Vollkasko)

The most extensive form of car insurance available in Germany is Comprehensive Coverage or Vollkasko. This policy includes everything covered under both Third-Party Liability and Partial Coverage Insurance, with the added benefit of also covering damages to your car in the event of an accident for which you’re responsible.

Opting for Comprehensive Coverage can provide immense peace of mind, particularly if you’ve invested in a new or high-value vehicle. It’s also often recommended for those who are less experienced drivers or who are not yet accustomed to driving in Germany.

Insurance type in GermanEnglish TranslationCoverage Level
Best For
HaftpflichtversicherungThird-Party LiabilityMinimum requiredEveryone, as it’s legally required
TeilkaskoPartial CoverageModerateThose wanting protection beyond liability
VollkaskoComprehensive CoverageMaximumThose seeking extensive coverage, including self-inflicted damages

Choosing an Insurance Provider

Here are some key factors to consider when choosing an insurance provider that best suits your unique needs, especially in a country where you might not be fluent in the language:

Customer Service

Exceptional customer service can make a significant difference in your overall experience. Look for companies offering robust customer support, including after-hours emergency assistance. While many companies in Germany provide customer service exclusively in German, several providers cater to the international community with English-speaking representatives.


Pricing can vary substantially between providers and policies, making it vital to compare multiple options. While you may be tempted to choose the cheapest option, remember that low premiums might also mean fewer benefits or higher deductibles. Balance the cost with the coverage and services offered to find a policy that provides good value for money.

Coverage Options

Make sure to scrutinize the range of coverage options each provider offers. Does the provider offer all three major types of insurance: Third-Party Liability, Partial Coverage, and Comprehensive Coverage? Are there add-on features like roadside assistance or coverage while traveling outside Germany? Understanding these options will allow you to tailor a package that aligns closely with your needs.

Additional Services

In addition to the core coverage, some providers offer extra perks that can make your life easier. This might include free car rentals in the event of an accident, fast claims processing, or even apps that help you manage your policy and claims directly from your smartphone.

Language Support

For those who are not proficient in German, the language barrier can pose a significant challenge when dealing with insurance matters. If you belong to this group, look specifically for providers that offer English-language support in their documentation and customer service.

Here are some car insurance providers in Germany:

How to Apply for Car Insurance in Germany

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While the prospect of applying for car insurance in Germany might seem daunting, especially if you’re dealing with a language barrier, the application process is often straightforward and even manageable online. Here’s how to go about it:

Required Documents

Before you begin, gather all the necessary documents. Typically, you’ll need:

  • Your passport or ID card
  • Vehicle registration documents (Fahrzeugschein and Fahrzeugbrief)
  • German bank account details for premium payments
  • Previous insurance history or a no-claims certificate, if available

Having these documents at hand can streamline the application process, ensuring you’re not running around gathering paperwork at the last minute.

Online Application

  1. Select a Provider: Choose an insurance provider that meets your criteria in terms of pricing, coverage, and additional services.
  2. Fill Out the Application Form: This usually involves entering personal information, and vehicle details and selecting the type of coverage you want.
  3. Submit Documents: Some providers allow you to upload scanned copies of required documents right within the online application.
  4. Review and Confirm: Before submitting your application, double-check all entered details. Make sure to read the terms and conditions carefully.

In-Person or Over-the-Phone Application

  1. Make an Appointment: If you’re more comfortable discussing options in person or over the phone, make an appointment with a representative.
  2. Discuss Your Needs: Use this opportunity to clarify any doubts, understand your options better, and perhaps negotiate rates.
  3. Submit Documents: Hand over or send copies of all the required documents.
  4. Sign the Contract: Once you’ve reviewed the terms and are satisfied, you’ll be asked to sign the insurance contract.

Whether you apply online or prefer a more traditional route, most providers will send you a confirmation, often followed by a physical copy of the insurance policy and related documents. Once you receive this, you’re officially insured and ready to take on the German roads.

Payment Process

Premium payments in Germany are generally straightforward. Most people opt for an automatic bank transfer (Lastschriftverfahren), where premiums are automatically deducted from your German bank account at regular intervals—usually monthly, quarterly, or annually.

Insurance Premiums

Premiums can vary widely based on many factors, making it essential to understand what goes into calculating your insurance cost. Let’s dive into the variables that can influence the size of your premium.

Age of the Driver

Age isn’t just a number when it comes to insurance premiums. Younger drivers, typically those under 25, often face higher premiums due to their lack of driving experience. Conversely, older drivers with a long history of safe driving can expect to pay less.

Driving History

Your driving record speaks volumes about your behavior on the road, and insurance companies listen attentively. A clean driving history can significantly lower your premiums. In contrast, a history marred by accidents or traffic violations can lead to higher costs.

Type of Vehicle

Your vehicle’s make, model, and age also come into play. A high-performance sports car will undoubtedly attract higher premiums than a family sedan. Newer cars are generally more expensive to insure as their repair or replacement costs are higher.

Geographic Location

Believe it or not, your zip code can influence your car insurance premiums. Urban areas with higher traffic density and elevated risks of accidents or theft often result in higher insurance costs compared to rural areas.

Policy Features

The extent of your coverage directly impacts your premiums. Opting for Comprehensive Coverage will naturally be more expensive than going for Third-Party Liability Insurance. Add-ons like roadside assistance, car rental services, and other extra perks can also add to the total cost.

Deductible Amount

The deductible, or Selbstbeteiligung, is the amount you agree to pay out-of-pocket in case of a claim. A higher deductible usually means lower premiums, but it also means you’ll be shouldering more of the financial burden if you ever need to make a claim.

Key Terms to Know

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While becoming fluent in insurance lingo is not mandatory, knowing some basic terms can be exceptionally helpful. Here are some important ones:

  1. Haftpflichtversicherung: This is the German term for Third-Party Liability Insurance, the minimum insurance coverage legally required for every vehicle owner in Germany.
  2. Teilkasko: This refers to Partial Coverage Insurance, which offers protection against theft, fire, and damages from natural disasters, among other things. It’s an optional coverage that goes beyond the mandatory Third-Party Liability Insurance.
  3. Vollkasko: Comprehensive Coverage Insurance is known as Vollkasko in German. It provides the most extensive coverage, including damages to your own vehicle even if you’re at fault in an accident.
  4. Selbstbeteiligung: This term refers to the deductible, the amount you’ll have to pay out-of-pocket before your insurance kicks in when making a claim.
  5. Schadenfreiheitsklasse: This is known as the No Claims Bonus or No Claims Discount in English. It’s a reward system that reduces your premiums for every year you go without making a claim.
  6. Lastschriftverfahren: This is the term for automatic bank transfer, Germany’s most common way of paying insurance premiums. Premiums are usually deducted from your German bank account at regular intervals.
  7. Deckungssumme: This refers to the coverage amount, the maximum sum that the insurance company will pay out in case of a claim.
  8. Versicherungsprämie: This term means insurance premium, the amount you pay to maintain your insurance coverage, usually on a monthly, quarterly, or yearly basis.
  9. Grünne Karte: Also known as the “Green Card,” this is an international certificate of insurance proving that your car has at least a minimum level of insurance to travel internationally.
  10. Kfz-Versicherung: The general German car insurance term is Kfz-Versicherung, where Kfz stands for Kraftfahrzeug, meaning motor vehicle.

Related: New to Germany: A Newcomer’s Guide to Living in Germany

Additional Tips

From being mindful of deadlines to understanding the local driving culture, these tips aim to prepare you for the road ahead, both figuratively and literally.

  • Early Planning: If you’re relocating to Germany or planning a lengthy stay, it’s advisable to start looking into car insurance options well before you arrive or need to start driving. Early planning can save you from making hasty decisions that might not be the most financially or practically beneficial.
  • Multi-Car Discounts: If you insure more than one vehicle, inquire about multi-car discounts. Many providers offer reduced rates for additional cars or for families who insure multiple vehicles through the same company.
  • Understanding Local Traffic Rules: Being well-versed in German traffic rules and regulations can not only prevent accidents but also help you maintain a clean driving history, which, in turn, could lower your insurance premiums. Make it a point to understand basic road signs, speed limits, and driving etiquette.
  • Consider Seasonal Policies: If you only require a vehicle for specific periods—say, during the summer months for road trips—it might be worth exploring seasonal insurance policies. Some providers offer flexible plans that allow you to pay premiums only for the months you drive.
  • Keeping an Eye on Renewal Dates: Car insurance policies in Germany are usually automatically renewed. However, if you wish to switch providers or negotiate terms, you’ll need to cancel your existing policy before the renewal date. Make sure you’re aware of the deadlines for cancellation to avoid being locked into another term.
  • Consulting with Independent Brokers: Consider consulting with an independent insurance broker for a comprehensive overview of your options. They can provide you with impartial advice tailored to your specific needs, often at no extra cost to you, as they’re usually compensated through commissions by the insurance companies.
  • Safe Driving Courses: Enrolling in a safe driving course can improve your skills and potentially reduce your premiums. Some insurance providers offer discounts for drivers who have completed recognized driving safety courses.
  • Document Storage: Keep a copy of all your insurance documents, including the policy, terms and conditions, and any correspondence with the provider, in a secure yet easily accessible place. In case of a dispute or claim, having these documents readily available can expedite the process.

Related: Car Loans in Germany: Everything You Need to Know in 2023

Car Insurance in Germany [English Guide 2024] (2024)


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