Car insurance (Kfz versicherung or autoversicherung) in Germany is mandatory for all drivers. If you are driving in Germany, you will need a minimum third-party liability insurance for your car in order to register it and obtain a German license plate. Vehicle insurance certificates must be shown at all times.
As with many European countries, you need to insure the car rather than the driver in Germany. However, some comprehensive insurance policies allow insurance for multiple drivers for the same vehicle.
Many German insurance companies allow second car insurance with the same policy. For this reason, parents in Germany can insure their children's cars as the second car in their policy.
The German protection market is controlled by the Federal Financial Supervisory Authority (BaFin) and most organizations have a place with the German Insurance Association (Die Deutschen Versicherer - GDV).
Would you be able to involve vehicle protection from one more country in Germany?.
Drivers from EU/EFTA nations can utilize protection from their nation of origin. Those from outside the EU can at times utilize protection from their nation of origin assuming they have a worldwide green card.
However, long-term residents of Germany will need to have a German insurance policy.
What are the types of car insurance in Germany?.
There are three main types of German car insurance: third-party insurance, partial and comprehensive coverage.
Third-party car insurance in Germany.
This is the minimum coverage required for drivers in Germany. Covers damage to other vehicles in the event of an accident, including medical costs. However, it does not cover any of your costs.
Partial car insurance in Germany.
Car insurance covers everything included in third-party coverage plus some costs related to damage to your vehicle, including theft as well as fire and storm damage. However, it does not cover vandalism or any accident-related costs that are your fault.
Comprehensive car insurance in Germany (Volkasko).
As its name suggests, this covers the full costs including damage to your vehicle and other vehicles in accidents that are your fault. Some Vollkasko policies also cover additional costs such as those related to disability and death caused by an accident.
Due to the breadth of coverage, this policy is the most expensive type. Some dealerships for new cars insist on this as a lower-level policy.
Car insurance costs in Germany.
- Driver's age
- driver experience and registration.
- car value.
- Number of insured drivers.
- location (larger cities are usually more expensive).
- Vehicle use (including the purpose of use and how often you will drive).
You can reduce your annual premiums in a number of ways, including paying a higher excess/discount (the amount you pay for any claim), paying the entire annual amount, or reactivating the no claims bonus.
Due to the various factors involved in calculating the cost, premiums in Germany can vary quickly from around €100 per year for third-party coverage for cheaper or used vehicles to over €1,000 per year for comprehensive coverage on high-end models.
Additional forms of car insurance in Germany.
You can get optional additional forms of car insurance in Germany. Most insurance companies will offer several add-ons including:
Breakdown Insurance - Covers the costs of towing your vehicle in the event of a roadside breakdown. It also sometimes includes vehicle replacement costs and the costs of transporting sick or injured people.
Legal Insurance - Covers legal expenses in the event of an accident that goes to court.
Additional Equipment Cover - If you carry or store expensive equipment in your vehicle, you can cover the costs of damage or theft if you pay a higher premium.
Extended Primary Damage - If you live or travel near mountainous areas, you may need this to protect against the risks of damage due to avalanches or heavy snowfall.
Car Insurance Bonuses in Germany.
In Germany, there is a no-claims bonus system (schadenfreiheitsklasse) that awards drivers who have spent a year or more without claiming a discount on their annual premiums.
Exact deductibles can vary between insurance companies, but as a rough guide, you are entitled to:
- Up to 35% discount on annual costs if no claim has been submitted for one year;
- About 45% discount for 3 years without making a claim;
- Approximately. 50% discount if 5 years without making a claim;
- Up to 80% off if 15+ years old without making a claim
- You can often not carry over claims periods from other insurance companies, including companies from abroad. If you are moving to Germany from abroad and want to transfer your no-claims bonus, it is recommended that you request a letter from your previous insurance company to confirm the no-claims period.
Companies often penalize drivers who have a poor driving record. Expect to pay an additional premium if you.
- young or inexperienced driver;
- I had an accident I was at fault;
- You have any points on your license for offenses such as speeding or driving under the influence.
The best car insurance companies in Germany.
How to choose car insurance in Germany.
You can take a number of different factors into consideration in addition to the premium costs when shopping for car insurance in Germany. These may include:
- No Claims Bonus - What discounts are offered and what is the policy for transferring rewards from elsewhere?
- Policy coverage - what is excluded from standard coverage, can it be added if needed, and at what cost?
- Excess/Deductible Options - What is the mandatory raise and what are the options to choose to increase it?
- Company reputation - how does the company perform in reviews and what does customer feedback look like?
- Claims process – how clear is it, what does it include and what do the reviews say about how it works in practice?;
- Emergency aides - Does the organization offer a decent breakdown help strategy?.
How to apply for car insurance in Germany.
To obtain German car insurance, you will need to provide:
- Your driver's license number
- personal identification
- Other personal information as of 2005/2008
- Basic account details (if paying by direct debit)
- Documents you require to insure the car (some of these insurance companies may require)
- Power of attorney companies allow you an online insurance policy. If you do, you must obtain your insurance details electronically within 24 hours.
- Your EVB insurance number (elektronische Versicherungsbestätigung) insurance
- EU accident declaration form for use in the event of an accident.
How to file a car insurance claim in Germany.
If you need to file a claim with your insurance company, you should contact them as soon as possible. Accident claims must be submitted within two weeks of the accident. Must:
- Exchanging details with the other party or parties involved in the accident.
- Take pictures of any damages.
- Take contact subtleties of any observers to the mishap.
- Fill out an accident report form to submit to your insurance company.
- Call the police only if the accident results in serious injury or if the other party is not present (for example, if you hit a parked car or someone else's property and cause serious damage).
- Call an ambulance if anyone is seriously injured and needs hospital treatment
- You will need to send the relevant information to your insurance company and they will tell you if you need to provide any other information. Claims must be resolved within 3 months. The insurance company usually sorts out the costs directly with the companies involved (eg auto repair garages).
If you need to file a claim with the other party's insurance company and they haven't given you the insurance details, you can find it by submitting the license plate number to the auto insurance companies central office. This central office can also provide you with the necessary details for insurance claims representatives in other EU member states in the event you have had an accident in another EU country.
How to cancel a car insurance contract in Germany or change a car insurance company in Germany.
Beware that many German car insurance contracts renew automatically. You usually need to give at least one month's notice if you want to cancel a contract or switch to another provider.
You can terminate the insurance contract early under exceptional circumstances. These include:
- Premiums increase. The insurance company is obligated to provide at least one month's notice of any premium increases. Most policies in Germany start from January 1, so you should receive a notice of the increase no later than November 30.
- If you are not satisfied with your insurance company's handling of a claim. You will need to provide the details in writing. If the insurance company objects to this, you may need to go through a formal complaint procedure.
- Sell the car. The car buyer automatically takes the existing policy but has the right to cancel as long as he can confirm the purchase of coverage with another insurance company.
Submit a complaint about a car insurance company in Germany.
German car insurance companies are obligated to accept auto insurance applications under the Compulsory Insurance Act (Article 5/2). However, there are cases where they can refuse to provide a policy, such as if the applicant has previously made a policy with them and violated the terms of the contract.
If you feel that a car insurance company in Germany has been treated unfairly or you are not satisfied with the services provided, you can file a formal complaint. The procedure to do this is:
Write to your insurance company's complaints department in the first place.
If you do not receive a response or are not satisfied with the outcome, you can escalate your complaint to BaFin.
You can track down data on the best way to do this here.
You can also file a complaint with the Insurance Ombudsman for a free, independent, out-of-court solution.
If you are still not satisfied with the results out of court, you can take the case to court. However, this does mean that you will be responsible for your own legal fees.
Roadside assistance in Germany.
ADAC (Allgemeine Deutsche Automobil-Club and AvD (Automobil-Club von Deutschland) are the two main car clubs that provide national breakdown and recovery services. ADAC's basic membership costs €54 per year, with more expensive premium membership offers available.
German motorway assistance can be called free of charge from the emergency phones located along the roads. If you have an accident, call the police on 110 or call 112 for an ambulance. In addition, do not forget that it is illegal to leave the scene of the accident without getting help.
