Car Insurances in Germany [Complete Guide 2024] - Navigate Germany

Germany is known to have so many insurances and car insurance is one of them.

Overview of Car Insurance in Germany

Kfz versicherung or autoversicherung is compulsory for all drivers in Germany after which they can register their automobile and can get a German license plate. The vehicle must have insurance certificates all the time. According to the 2016 stats, there were around 85 – 90 automobile insurance companies in Germany such as;

• AXA
• BavariaDirekt
• HDI

In Germany, vehicles need insurance and a single vehicle can have multiple plans by several drivers. If you are a parent, you can add your child’s vehicle to your plan. Insurance companies are linked with the German Insurance Association (Die Deutschen Versicherer – GDV) that regulates the insurance market.

Kinds of Car Insurance

Here are the three kinds of car insurances:

Haftpflicht (Liability Insurance)

Liability insurance is the most fundamental kind of car insurance that covers any harm you or your car might cause to another person or automobile and the medical expenses but it does not cover the harm caused to your vehicle if you have caused it yourself.

Teilkasko (Partial Insurance)

Partial insurance is expensive as it offers liability coverage and coverage for vandalism, broken glass, electrical surges, and marten (weasel) to protect people from the loss due to natural disasters such as earthquakes or floods.

Vollkasko (Comprehensive Insurance)

Comprehensive car insurance covers liability insurance, partial insurance, and vandalism. It is very expensive and protects people from loss due to collisions caused by you.

eVB Number

An eVB number is required if you want to register your car in Germany. You can get this number from your car insurance provider via email. This number proves that your vehicle is insured and The Registration Office processes your application quickly.

Cost of Car Insurance

Cost of car insurance is calculated based on the factors like experience and age of a driver, location, engine size, and overall value of the vehicle. The deductible amount will determine the cost of car insurance. If your deductible is 300 Euros, snd the damages are 1000 Euros, you will pay 300 Euros and the insurance company will cover 700 Euros. Motorists pay 150€ deductible with partial insurance (Teilkasko) whereas they pay between 300€ and 500€ with comprehensive insurance (Vollkasko). Young drivers have more chances of collisions so the cost of insurance for young drivers is comparatively high. If you have an old vehicle, choose partial insurance as it is less expensive but if your vehicle is new, go with the comprehensive insurance plan.

Cheapest Car Insurances in Germany

Cheapest car insurances are: - CosmosDirekt – This insurance company offers plans at reasonable rates and offers more value for money. A lot of German tests demonstrated the superb price-performance and you can save up to 40% on the cost of the item. - DA Direkt – This insurance provider offers considerable discounts. - AXA – This insurance provider offers a good value and comprehensive coverage. You can add the services you want and customize the plan according to your need.

Use a free comparison platform to compare different options and prices. Tools like Tarifcheck.de will help you find the right insurance for your car.

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Foreign Automobile Insurance in Germany

You can use your own nation’s insurance if it is from EU/EFTA nations or if the driver has a green card.  But long-term residents in Germany must purchase a German insurance policy.

Pros and Cons of Car Insurance

✅ Pros

• Wide variety of coverage – a lot of coverage options, so you can find one according to your needs and budget.
• Low premiums – low premiums to make a good investment.
• Good customer service – excellent customer service so you can get full support.
• Flexible payment plans – flexible payment plans to make it easy to get the coverage you need without paying the upfront.

⛔ Cons

• Limited availability of discounts – discounts are not available due to higher rates.
• Complex rules – rules are difficult to understand and you have no idea if you’re eligible for a discount or not.

Cancellation of Car Insurance

Automobile insurance is automatically renewed on 1st January every year. If you want to cancel, make a request before November 30 to avoid charges. You can also choose a cheaper insurance every November by comparing the rates using Verivox or Tarifcheck. If you sell your vehicle, insurance will cancel automatically.

Conclusion

Having your vehicle’s insurance is always beneficial To cover the losses caused to others and to cover the damages fue to accidents or collisions. Cancellation is very easy if you cancel in November, otherwise it will be automatically renew in January. Remember to compare the plans so you can choose one that best suits your need and budget.