Vehicle Insurance in Germany
Essential Facts:
Motor vehicle liability insurance is mandatory by law and required for registering any vehicle. In addition to liability insurance, comprehensive insurance can provide additional coverage, although it may only be worthwhile for expensive or new cars. Car accident insurance is usually unnecessary, but car insurance can be important when traveling abroad. It is important to ensure that every motor vehicle owner has liability insurance, regardless of the type of vehicle. Other insurance products are also available, and it is essential to understand when you need them and how to find a suitable contract.
Read our FAQ’s about Car Insurances in Germany!
Your Options
Motor vehicle liability insurance is mandatory, but not all are equally good. Since damages in car accidents often run into the millions, you should have a high coverage amount – preferably at least 50 to 100 million euros. Read our FAQ’s about Car Insurances in Germany!
Motor vehicle liability insurance
by CosmosDirekt
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Apply Online: Flexible Car Insurance with CosmosDirekt
Motor Vehicle Liability Insurance by CosmosDirekt
CosmosDirekt offers a fully digital car insurance solution that is simple, flexible, and tailored to your needs. With their mileage-based insurance, you can ensure that you only pay for what you really use.
How does it work?
When you take out insurance with CosmosDirekt, you estimate the number of kilometers you will drive in a year. If your actual mileage is lower than expected, you benefit from cost savings. On the other hand, if you drive more, you simply pay for the additional kilometers—ensuring a fair and transparent billing process. This makes it particularly attractive for low-mileage drivers.
In addition to the mileage-based model, CosmosDirekt also offers classic car insurance with fixed pricing, allowing you to choose the best option for your driving habits.
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What’s the best option for you?
Verivox compares the premiums of different car insurers on the basis of your data. You can save a lot of money by comparing or changing your insurance.
The insurance premiums are recalculated every year. In the event of an increase, there is a statutory right of termination. Otherwise you can cancel your insurance on 30.11. each year.
It’s as simple as that.
Verivox compares the premiums of different car insurers on the basis of your data. You can save a lot of money by comparing or changing your insurance.
FAQ – Motor Vehicle Liability Insurance in Germany
Table of Contents
Important Facts about the Motor Vehicle Liability Insurance in Germany
As a motor vehicle owner in Germany, you are legally required to have motor vehicle liability insurance. It is also your responsibility to ensure that anyone who drives the vehicle is covered by liability insurance. Insurers offer higher coverage levels than the minimum required by law for a small premium surcharge. We recommend taking out a contract with high coverage, preferably at least 50 to 100 million euros. In the event of an accident, the insurer checks the claims made by accident victims and either defends or pays them, up to the amounts agreed in the insurance policy. However, there are circumstances where you have no insurance cover, such as in cases of damage caused intentionally or unlawfully.
When an accident occurs, the liability insurance checks whether the accident victims’ claims are justified. It then performs two tasks:
If the liability insurer considers the claims to be unjustified, it defends them at its own expense, if necessary also in court. Liability insurance thus offers so-called “passive” legal protection.
If the insurance company considers the claims to be justified, it pays the damages – up to the amounts agreed in the insurance policy.
Such damages that the insurance company must pay to accident victims may include:
The insurer cannot refuse payment even in the event of gross negligence on the part of the person responsible for the accident. However, the insurer can claim up to 5000 euros from the driver for the following offences:
Comprehensive Insurance
Comprehensive insurance provides coverage for damage, destruction, total loss, or loss of the vehicle and its accessories. The insurance company’s respective parts list includes accessories such as car radios, navigation devices, and aluminum rims. It is advisable to check if your costly accessories are covered in the protection.
If the vehicle incurs damages, comprehensive insurance reimburses repair costs, or in the case of total loss, the replacement value less the residual value of the vehicle. The residual value is determined by an expert, and scrap dealers may still pay a small amount for the accident vehicle. You are responsible for selling the vehicle and ensuring that the buyer pays the residual value amount.
The two types of comprehensive insurance
There are two types of motor vehicle insurance in Germany to consider. The first is partial comprehensive insurance, which covers damages caused by natural forces like fire, explosion, theft, storm, hail, lightning, and flood. This also includes collisions with animals and certain damages to accessories. However, damages to tires are not covered.
The second type of insurance is comprehensive insurance, which covers damages caused by others and accidents where you are at fault. This is recommended for expensive new cars and those financed or leased on credit. For older vehicles, partial comprehensive insurance may be a good option if you cannot afford a new car in the event of total loss.