Car insurance in Germany: cover types, cost and how to switch by 30 November

The short answer

• Kfz-Haftpflicht is compulsory. It is required by § 1 of the Compulsory Insurance Act (Pflichtversicherungsgesetz, PflVG). It pays for damage you cause to other people.
• Kasko is optional. It protects your own car.
• The price is calculated individually. It depends on your no-claims history, the car model, the region, annual mileage and a few other factors.
• You can switch once a year under most contracts: your cancellation must reach the insurer by 30 November.

Haftpflicht, Teilkasko and Vollkasko: what each one covers

Kfz-Haftpflicht pays for damage your car causes to others: injuries, other people’s cars and other property. The law sets minimum cover per claim (annex to the PflVG): €7.5 million for personal injury, €1.3 million for property damage and €50,000 for pure financial loss. In practice many policies are taken out with €50 or €100 million of cover, and the Verbraucherzentrale (Germany’s consumer advice centre) recommends checking this when you change tariff. Haftpflicht does not pay to repair your own car.

Teilkasko (partial cover) pays for damage to your car from events you have little control over: theft, broken glass, collisions with wild animals, storms, hail and fire.

Vollkasko (comprehensive cover) includes everything in Teilkasko and adds damage from an accident you caused, as well as vandalism.

* Kasko is always taken out together with Haftpflicht. The exact list of risks depends on the terms of the specific tariff (AKB, the general terms and conditions for motor insurance).

As a rule, people choose Vollkasko for a new or expensive car, or for one that is financed or leased. For an older, inexpensive car, Haftpflicht alone or Haftpflicht with Teilkasko is often enough. The decision depends on what the car is worth and whether you could pay for a major repair yourself.

How much does car insurance in Germany cost, and what drives the price?

There is no single figure. Two neighbours with identical cars can pay very different premiums, because insurers price on a whole set of factors. The main ones are:

1. SF-Klasse (Schadenfreiheitsklasse, no-claims class). The more years you drive without an accident that was your fault, the higher your class and the lower your premium. After an at-fault accident you move down a class, and the policy gets more expensive.
2. Typklasse (vehicle model class). The GDV, the German Insurance Association, reviews claims statistics for every model each year. The lower the class, the cheaper the insurance.
3. Regionalklasse (regional class). This is also set by the GDV, for each registration district, based on accidents, thefts, hail and collisions with animals. There are 12 classes for Haftpflicht, 16 for Teilkasko and 9 for Vollkasko (GDV). You can check your area with the official postcode lookup.
4. Annual mileage. The more you drive, the higher the risk and the price.
5. Who drives the car. Cover for just you, or for you and your partner, costs less than cover for any driver.
6. Drivers’ ages. Young drivers usually pay noticeably more.
7. Where the car is kept. A garage or a private parking space often lowers the premium.
8. Selbstbeteiligung (the excess, i.e. the part of each claim you pay yourself). The higher the excess, the cheaper the Kasko.

Insurers are free to decide whether and how they use the model and regional classes. That is why there is no honest general answer to the question “where is the cheapest car insurance in Germany?”. The best-value tariff is the one that suits your particular combination of factors, and the only way to find it is to compare offers from different insurers. We run that comparison for our clients in a professional comparison system.

Foreign no-claims history

This is the key question for anyone who has moved to Germany with driving experience from abroad (from the UK, the US, India, Turkey or elsewhere). When you take out your first German policy, you are usually placed in a starter class, so the premium is high. Some insurers will recognise no-claims history from abroad if you show a certificate from your previous insurer. Not all of them do, and their rules differ.

What to prepare in advance:

• a certificate from your previous insurer showing how long you were insured and confirming that you made no at-fault claims;
• if possible, a German or English translation of the certificate;
• your driving licence and vehicle documents.

Not every insurer will accept such a certificate, and that is normal. Send us your no-claims certificate and we will check which insurers will recognise your no-claims history.

Your first car: eVB-Nummer and registration

To register a car you need an eVB-Nummer (electronic proof of insurance, a seven-character code). The insurer issues it as soon as you have chosen a Haftpflicht tariff. You take this code to the vehicle registration office (Zulassungsstelle), and your cover runs from the date of registration.

If you buy a car that is already registered, the previous owner’s policy passes to you. You can cancel it within one month of the purchase and take out your own cover (Verbraucherzentrale).

How to switch car insurance

The usual annual switch. You can cancel with one month’s notice before the end of the insurance year. For most contracts the insurance year is the calendar year, so your cancellation must reach the insurer by 30 November at the latest. What counts is the date it arrives; the date you sent it is irrelevant (Verbraucherzentrale). Some insurers count the year from the car’s registration date. In that case the deadline is different, and you will find it in your policy documents.

Premium increase. If your insurer raises the premium while the cover stays the same, you have a special right to cancel (Sonderkündigungsrecht): one month from receiving the letter about the increase (§ 40 VVG, the Insurance Contract Act). This applies even after 30 November.

Buying a car. When you buy a car that is already registered, you can cancel the previous owner’s policy within one month (see above).

The order is simple: first get confirmation of the new policy, then send the cancellation for the old one and ask the insurer to confirm receipt.

To get a first price for a new policy before 30 November, try our car insurance calculator.

Common mistakes expats make

1. Looking only at the price. A low premium often means a high excess or narrow cover.
2. Not asking about foreign no-claims history. It is easier to get the certificate from your previous insurer before you move than afterwards.
3. Choosing “any driver” when only one person drives, or leaving off a second driver who actually uses the car. In the second case you may have to pay extra after an accident.
4. Understating mileage. If your real mileage turns out higher, the insurer can recalculate the premium.
5. Missing 30 November and not knowing about the special right to cancel after a premium increase.
6. Switching insurer after an accident while you have Rabattschutz (no-claims bonus protection). This protection only applies with your current insurer, and a new insurer may place you in a lower SF-Klasse (Verbraucherzentrale).

FAQ

Is car insurance compulsory in Germany?
Yes. Kfz-Haftpflicht, which covers your liability towards other road users, is compulsory. Without it the car cannot be registered and you may not drive it. Teilkasko and Vollkasko are optional.

How much does car insurance cost for a new driver?
An exact figure is only possible after a calculation. Without proven no-claims history, whether you are a new driver or new to Germany, you start in a low SF-Klasse and pay noticeably more than an experienced driver. A model that is cheaper to insure, a restricted list of drivers, a garage and a higher excess all bring the price down.

Will my foreign no-claims history count?
It depends on the insurer: some recognise foreign no-claims history on the basis of a certificate from your previous insurer, others do not. Ask your previous insurer for a certificate of your claim-free period and send it to us. We will check which insurers will recognise your no-claims history and find a suitable tariff.

When and how can I switch car insurance?
Under most contracts your cancellation must reach the insurer by 30 November, and the contract then ends on 31 December. After a premium increase you have one month from receiving the letter to cancel. Take out the new policy first, then cancel the old one.

What is the difference between Teilkasko and Vollkasko?
Teilkasko covers theft, glass, collisions with animals and natural hazards such as storms and hail. Vollkasko adds repairs to your own car after an accident you caused, and vandalism. That is why Vollkasko costs more.

Next step

Compare prices yourself in our car insurance calculator, or book a free consultation and we will check whether your foreign no-claims years count.

We calculate car insurance in Germany in a professional tariff comparison system, based on your car, your no-claims history and your situation. Boiko Wealth Management (BoikoWM) is an independent insurance intermediary (Versicherungsmakler): we compare offers from different insurers, check which ones will recognise your foreign no-claims history and find a suitable tariff. If you want to switch by 30 November, it is best to start in October.

You can read more about how we work on our services page.

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