Car Insurance

Car insurance in Germany is not optional – it is a legal requirement. Before you can register any motor vehicle, you must have at least third-party liability cover in place. This applies to everyone: German residents, EU citizens, and non-EU expats alike. Third-party liability (Haftpflicht) is the mandatory minimum. It pays for damage you cause to other people and their property in a road accident. It does not cover repairs to your own car. Beyond the legal minimum, there are two optional levels of cover. Partial cover (Teilkasko) protects against specific non-fault events: theft, storm, hail, flooding, broken glass, and collisions with animals. Comprehensive cover (Vollkasko) adds protection for damage to your own vehicle even when you are at fault, as well as vandalism. A key concept in the German system is the Schadenfreiheitsklasse (SF class), or no-claims class. Each accident-free year moves you up one class and lowers your premium. Filing a claim can push you back down. If you are moving to Germany from abroad, it is worth checking whether your home country's no-claims history can be recognised – many insurers accept proof of foreign no-claims experience. When comparing policies, pay attention to the excess (Selbstbeteiligung) for Teilkasko and Vollkasko, the territorial scope for driving in other countries, whether roadside assistance (Schutzbrief) is included, and any restrictions on who may drive the vehicle.