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 important 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!

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Motor vehicle liability insurance
  • Pay per kilometre
  • Money back if driven less
  • From 1 cent/km – you never pay too much
  • Mileage-based billing
  • 100 % digital
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Apply online: Pay per Kilometer with FRI:DAY

Motor vehicle liability insurance by FRI:DAY

FRI:DAY offers a car insurance that you can take out completely digitally, in 90 seconds. The big advantage of FRI:DAY’s car insurance is that it is purchased per kilometer. This means you never pay too much.

How does it work?

When you take out insurance, you estimate how many kilometers you will drive in a year and tell FRI:DAY. By the way, this works very easily online, no technical installation is required. If you drive less than estimated, you get your money back. Two thirds of the customers get their money back at the end of the year. If you drive more than the estimate, you only pay for the extra miles driven. Mileage-based billing is particularly worthwhile for low mileage drivers – for example, if you drive around 9,000 kilometers a year.

Note: If you don’t like this concept, FRI:DAY also offers classic car insurance.

No matter if you choose number-per-kilometer or original: In both products you can choose between motor liability, partial cover and fully comprehensive. While motor liability is the legally required insurance, comprehensive insurance offers more protection for you and your car.

Car insurance in germany

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What’s the deal 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.

Why you should compare your insurance with Verivox

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.

How it works

  1. Following the link on this website
  2. Enter Postal code & click on “jetzt vergleichen”
  3. Choose your preferred provider
  4. Conclude the contract online

It’s as simple as that.

Main Advantages

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.

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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:

  • Loss of earnings
  • Compensation for pain and suffering
  • A lifelong pension in the event of occupational disability
  • Property damage (such as repair costs, compensation for the loss of value of the vehicle or its replacement value).
  • If the injured party needs a rental car during the repair or delivery of a replacement vehicle, this will also be paid for. Instead of a rental car, the injured party may also claim loss of use.

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:

  • If he used the vehicle for a purpose other than the agreed purpose (private vehicle used commercially as a taxi).
  • If he drove without a driving licence
  • If he was not allowed to use the vehicle (e.g. theft)
  • Driving while intoxicated or under the influence of alcohol
  • Participation in illegal races.
  • Leaving the scene of an accident without permission (also called hit and run).
  • You have no insurance cover at all, e.g. in the case of damage caused deliberately (legally: intentionally) and unlawfully.

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.