Car Insurance In Germany

Car Insurance

Germany has a strong automobile sector, and most residents own and drive vehicles regularly. As in other European nations, you are required to be protected by a minimum level of vehicle insurance in Germany and can also select alternative additions.

In Germany, car insurance is mandatory for every driver. To enroll and obtain a German license plate, you must have at least third-party liability insurance. Insurance certificates must be shown in the vehicle at all times.

Germany possesses one of Europe’s largest car insurance markets and the most extensive total car market globally. There are about 90 car insurance firms in the nation, according to 2016 statistics from Insurance Europe. These firms have to do with the following:

  • Helvetia
  • DA Direct
  • Allianz Direct Versicherungs-AG
  • AXA
  • HDI

A way to simplify dealing with German auto insurance is to work with a foreign-friendly broker who is a professional assisting new immigrants to Germany with their protection.

As with several European nations, you are required to insure the car instead of the driver in Germany. Hence, most extensive policies permit insurance of several drivers for the exact vehicle. Several German insurers authorize second car insurance on the same policy. Due to this, parents in Germany can insure cars belonging to their kids as the second vehicle on their policy. The Federal Financial Supervisory Authority controls the German insurance market, and the German Insurance Association oversees many firms.

Using Car Insurance From Another Nation In Germany

Car drivers from EU/EFTA nations can use insurance from their home nation. People from outside European nations can most often use insurance from their home nation if they possess a foreign green card. Hence, long-term residents in Germany will be required to take out a German insurance policy.

Kinds Of Car Insurance In Germany

There are three primary kinds of German vehicle insurance: partial coverage, third-party, and comprehensive coverage.


Third-party insurance is the most minor level of protection needed for drivers in Germany. It protects against harm to other cars in a car crash, which includes medical expenses. Hence, it does not protect any of your costs.

Partial Cover

The partial cover protects everything attached to third-party protection and some expenses associated with harm to your car, including theft, fire, and storm destruction. Hence, it does not protect against vandalism or any costs related to accidents that are your fault.


As recommended by its name, comprehensive insurance protects complete expenses related to harm to your own and other cars in accidents that are your fault. Most car insurance policies also protect extra costs, including those associated with disability and death resulting from the accident.

Due to the extent of the protection, this policy is the most costly. Most vendors of new vehicles insist on this as the least expensive policy.

The Cost Of Car Insurance In Germany

Just like in other locations, car insurance expenses in Germany depend on several various aspects, which include:

  • Age of the driver
  • History and skills of the driver
  • The worth of the car
  • The number of drivers insured
  • Location (expenses for bigger cities are often more costly)
  • Car use (this has to do with intention of use and how often you will drive)

You can decrease your yearly dividends in different ways, including reimbursing a higher surplus and deductible, which is the sum of money refunded towards any claim, reimbursing the annual sum in total, or reactivating your no-claims gains.

Due to the different aspects of expense calculation, insurance dividends in Germany can differ hugely from $107.61 annually for third-party protection for inexpensive or second-hand cars to more than $1,076.08 annually for comprehensive protection on top-range models.

Extra Forms Of Car Insurance In Germany

You can take out alternative additional forms of car insurance in Germany. A lot of insurance firms will provide different additions, which include:

  • Breakdown insurance protects against the expense of your vehicle being towed away in the event of a roadside breakdown. It also usually covers replacement car expenses and transporting sick or wounded individuals.
  • Lawful insurance: Protects lawful costs in the incident of harm that leads to court.
  • Extra tool protection: If you acquire or store costly tools in your car, you can protect against the expense of harm or robbery if you reimburse higher dividends.
  • Prolonged elementary harm: If you reside or travel close to the mountainous regions, you may require this harm because of avalanches or severe snowfall.
  • Rental car insurance: Rental firms often offer the least protection for their cars; however, extra protection can afford you additional coverage against expenses. Firms providing this in Germany have to do with Allianz Travel.

Car Insurance Bonuses And Penalties In Germany

Germany has a no-claims bonus system entitles drivers who have gone one year or more without claiming a discount on their yearly dividends.

Actual discounts can differ between insurers; however, as a rough manual, you will be entitled to the following:

  • About 35 percent of yearly expenses are 12 months without making a claim.
  • About 45percent off if 36 months without making a claim
  • About 50 percent off if five years without carrying out a claim
  • Up to 80 percent off if over 15 years without making a claim.

You can usually carry over no claims durations from other insurance firms, including overseas firms. Suppose you are relocating to Germany from abroad and desire to transfer a no-claims bonus. In that case, it is an excellent motion to demand a letter from your past insurer acknowledging the duration of your no-claims.

Firms also usually penalize drivers with a bad driving history. Anticipate to reimburse an increased dividends if you:

  • Are a young or unskilled driver
  • Have you been in a car crash where you were at fault?
  • Possess any points on your license for offenses related to speeding or drinking while driving.

Car Insurance Firms In Germany

Germany has about 90 vehicle insurance providers; therefore, it pays to buy around for the ideal deal. Most of the most famous firms have to do with the following:

  • Helvetia
  • AXA
  • Allianz Direct Versicherungs-AG
  • DA Direkt
  • HDI

You can compare insurance policies from German firms using comparison web pages for Verivox or Joonko.

How To Pick Car Insurance In Germany

You can consider several aspects, including dividend expenses when purchasing car insurance in Germany. These might have to do with:

  • No-claims bonus: The discounts and the policy for transferring bonuses from another place.
  • Policy protection: What is exempted from standard protection? Can this be attached if relevant, and what is the cost involved?
  • Surplus/deductible alternatives: What is the compulsory excess, and what are the options for deciding to elevate it?
  • Firm reputation: The way the firm carries out reviews and what the client response looks like.
  • Claims procedure: How simple is it, what are the things involved, and what do the reviews say concerning how it works in practice?
  • Roadside support: Does the firm provide an excellent breakdown support policy?

How To Apply For Car Insurance In Germany

To obtain German car insurance, you will be required to offer:

  • Your driving license number in Germany
  • Private Identification
  • Other private details associated with your driving records
  • Bank account information in Germany
  • Documents associated with car buying as some insurers may request for these.

A lot of insurance firms authorize you to buy an insurance policy online. You must get your insurance information online within 24 hours if this is done. After buying your car insurance, you are required to get:

  • Your EVB insurance code and insurance policy details.
  • EU accident declaration form is to be used in the incident of a car crash.