All drivers in Germany must be insured. It’s impossible to register a vehicle without valid car insurance, no matter whether you are a long-term resident in Germany or you brought your car to Germany from abroad.
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How does car insurance work in Germany?
Of course, if you are a long-term resident in Germany, you will have to have German car insurance.
What is mandatory car insurance in Germany?
Just like in other European countries, you need to have minimum liability coverage if you want to drive on German roads. Here are the minimum coverage amounts German law requires you to get for your car liability insurance:
- Financial Loss: Up to 50,000 euros.
- Personal Injury: Up to 7.5 million euros.
- Property Damage: Up to 1.12 million euros.
What is the average auto insurance cost in Germany?
The German Insurance Federation (GDV) reported in 2019 that Germany’s average annual car insurance premium costs approximately €260 for liability. Full comprehensive is an add-on coverage in this country, and it is €333, and partial coverage costs €87.
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What are the types of coverages you can carry in Germany
The fee you’ll pay for auto insurance depends on the kind of coverage you choose. Here are some coverages available in Germany that you must know about:
1- Partial Insurance (German: Teilkasko)
Partial car insurance in Germany is a combination of liability and some extra coverage that protects individuals in case of damages caused by:
- Fire or explosion.
- A short circuit causes damage to your car’s wiring.
- Broken glass (for example, a broken or cracked windshield)
- Wild animal accidents & bites from marten (similar to a raccoon).
- Some policies also cover damages caused by snow or roof avalanches.
- Damages caused by nature (storms with windspeeds above 8, hail, flooding, lightning).
2- Liability Insurance (German: Haftpflicht)
Liability car insurance, known as third-party insurance, is the minimum legal requirement. As the name “minimum” implies, this policy has a minimum coverage level; to be more specific, it covers damages that you or your car might cause to somebody or a vehicle and the medical expenses resulting from that only.
Unfortunately, liability coverage does not pay for the damage done to your own car if you are the one responsible for the accident.
3- Comprehensive coverage (German: Vollkasko)
Comprehensive insurance covers almost everything. It includes car liability insurance and partial coverage. Extra coverage provides vandalism, third parties, fire, theft and any damages to your own car, even if you are at fault.
If you experience a hit and run and have comprehensive, the damages to your vehicle are covered.
4- Breakdown insurance (German: Schutzbriefversicherung)
This coverage pays for towed service in the case of a breakdown or accident instead of you. You should consider getting this insurance if you don’t mind paying more.
Factors that impact insurance costs in Germany
- Age
- Mileage
- Credit score
- Driving record
- Vehicle type & age
- Where do you park your car overnight
- Number of drivers you are insuring
- Commercial or private use of the insured vehicle
- Location (prices for bigger cities are usually more expensive)
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What are the best car insurance companies in Germany?
There are 91 different car insurance companies available in Germany, and it might not be the easiest choice to pick the right one, besides the fact that it can be very time-consuming. Shop around and compare prices on sites like Preisvergleich.de or Verivox.de can help.
- HDI
- AXA
- R+V24
- Helvetia
- DA Direkt
- Die Bayerische
- Allianz Direct Versicherungs-AG
These are the best-rated car insurance companies active in Germany. For example:
AXA S.A., more commonly known as AXA, is a global French insurance carrier whose head office is in the 8th arrondissement of Paris, France. You can also get services such as investment management and other financial benefits from AXA. The AXA is primarily active in the following:
- Africa
- North America
- Western Europe
- the India Pacific region and the Middle East
This large company is an independently run business and has proven to deserve its place in the world by operating according to the laws and regulations of many countries.
Or
Allianz S.E. is a German multinational financial services company founded in 1890 and it’s headquartered in Munich, Germany. The original company has over 131 years of service.
Allianz plc offers their product in Northern Ireland and the Republic of Ireland, providing car, home, pet, boat, travel products, van, business, and school insurance.
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Review, edit, and shop around:
Review your policy every year and exclude any coverages that you think are extras and won’t need. Also, instead of renewing your policy every year, you should shop around and see if you find a cheaper policy.
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Raise your deductible:
The deductible (German: Selbstbeteiligung) is the amount you pay yourself before your insurance helps you. A higher deductible will result in cheaper car insurance. If you raise your deductible to 150€ – 300€, your premium will be 18% to 25% more affordable.
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Pay annually:
Yearly payments will make a 4% to 9% decrease on your premium. However, it means a considerable amount of money out of your pocket.
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Get Seasonal plates:
Seasonal plates (German: Saisonkennzeichen) are vehicle registration plates that only let you drive during specific months; don’t pay insurance for the months you won’t use the vehicle. Out of season, when you can’t use your car anymore, you can’t park it in public spaces; you must put it in storage, a garage or a private parking space.
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Get a Werkstattbindung:
Agreeing to a Werkstattbindung means you can save 10% to 20% on your car insurance, and you get better service with one. If you have an accident, repairs will be done in a garage that your insurer approved.
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Be a good driver:
New drivers always pay more for insurance in every country globally, and the rates drop slowly as the drivers age and gain more experience.
German insurance companies give every driver a class (Schadenfreiheitsklasse); for example, if you don’t make any claims, your Schadenfreiheitsklasse gets higher each year. A high Schadenfreiheitsklasse leads to being seen as a safe driver, resulting in a cheaper premium.
