If you plan on driving in Germany, it’s important to have suitable auto insurance. This type of coverage is a legal requirement and can cost a fortune if you don’t have it.
The costs of car insurance in Germany depend on a number of factors, including your vehicle’s model. Also, the region you live in will affect the price of your policy.
Third party
If you drive a car in Germany, you are legally required to have third party liability insurance. It protects you financially if you cause damage to someone else’s property or assets, or if you injure them in an accident.
This type of coverage is the cheapest and most basic of all car insurance policies. It also includes the costs of medical treatment if you injure another person.
The cost of auto insurance in Germany depends on several factors, such as the age of your vehicle and your no-claims discount bonus (Schadenfreiheitsklasse). Higher deductibles can save you more in premiums.
In Germany, car insurers are supervised by BaFin (Bundesanstalt fuer Finanzdienstleistungsaufsicht), which ensures that insurance companies do not breach the law in terms of quality and contents of their insurance policies. Additionally, BaFin accepts and processes complaints about individual insurance companies.
Comprehensive
You’re legally required to have insurance if you want to register your vehicle in Germany. Whether you’re a long-term resident or an occasional visitor, this is essential for your peace of mind and financial security.
Comprehensive car insurance (Vollkasko) is the most substantial level of car insurance, covering largely anything that could happen to you, your vehicle or another person in an accident. This includes damages caused by fire, flood or other weather-related events, theft and vandalism.
Generally, drivers pay around 300EUR-500EUR for this kind of cover. However, if you choose a higher deductible it can significantly reduce the cost.
German insurance contracts typically run in 12-month cycles, so you can always switch to a new provider to get the best deal. Changing your insurer can also help you save on the deductible amount, as recent market studies have shown that taking on a 150EUR deductible costs an average of 18% less than if you had a 300EUR deductible.
Motor vehicle third-party liability
Anyone who owns a car in Germany is legally required to carry motor vehicle third-party liability insurance. Basically, this policy pays out when you cause damage to others and their property.
Premiums for motor vehicle third-party liability vary significantly, depending on different criteria including the type of car and regional class. Drivers who can prove they have been accident-free for several years will generally pay lower premiums.
The deductible, which is the amount of money that you have to pay out of your own pocket before the insurer pays out, also plays an important role in determining the cost of motor vehicle third-party liability insurance.
It is also possible to save on the costs of your premiums by agreeing to have your vehicle repaired at a preferred garage (Werkstattbindung). In this way, you can usually get a 10-20% discount.
Extras
When it comes to auto insurance in Germany, the level of extras you choose has a lot to do with your insurance premium. Whether you prefer full cover, or a more comprehensive policy with less cover, it’s important to get this right for your own peace of mind.
Car model –
As well as the size of your vehicle, the type of model has an effect on the price of your insurance. Larger and more powerful cars cost more to insure than smaller, lower-spec vehicles.
Regional class –
There are a number of different classes for cars, which are published by the German Insurance Association (GIA). These classifications determine how much you need to pay for your vehicle insurance.
eVB –
After you sign a contract with your insurance company, they will send you an eVB number by email which you then need to provide to the registration office when registering your vehicle. This number will also serve as proof of insurance if you want to drive your car outside of Germany.