Car Insurance in Germany: How to Get the Best Deal

Car insurance in Germany is not optional. You cannot register your car without it, and you cannot legally drive without at least the minimum required cover. The system is structured, layered, and often confusing at first glance — especially if you are coming from the UK, the US, or another market with a different insurance model.

You cannot register your car in Germany without insurance. That is not a suggestion — it is the law. And the system you are about to navigate is unlike anything you have encountered in the UK, the US, or most other countries. Three tiers. German terminology. A no-claims bonus structure that can make or break your premium. And an entire bureaucratic layer — the eVB number — that sits between you and your license plates.

This is your guide to car insurance in Germany, explained in plain English. Whether you are an expat who just arrived, someone buying their first car here, or a driver who has been paying premiums for years without fully understanding what they cover — every type of insurance, every cost factor, and every trick to lower your bill is on this page.

What Are the Three Types of Car Insurance in Germany?

Germany has three types of car insurance, layered from minimum legal requirement to full protection. Understanding the difference is essential before you sign anything.

• Kfz-Haftpflichtversicherung (Haftpflicht) — third-party liability insurance. This is the minimum. It is legally required for every vehicle on German roads. Haftpflicht covers damage you cause to other people, their cars, and their property. It does not cover any damage to your own car. If you crash into a tree and your car is totalled, Haftpflicht pays nothing for your vehicle. It only pays the tree’s owner. Liability insurance is the baseline — and for many older or low-value cars, it is the only insurance that makes financial sense.
• Teilkasko — partial comprehensive insurance. Covers everything Haftpflicht covers, plus damage to your own car from events outside your control: theft, fire, storm, hail, flooding, glass breakage, animal collisions (Wildunfall), and short-circuit damage to wiring. Teilkasko does not cover damage to your own car caused by an accident you caused. If you rear-end someone, Teilkasko covers the other car (via Haftpflicht) but not yours.
• Vollkasko — fully comprehensive insurance. Covers everything above, plus damage to your own car from accidents you cause, including single-vehicle accidents (hitting a post, sliding off the road in winter) and vandalism. Vollkasko is the most expensive type of insurance but provides the most complete protection. For new cars, leased vehicles, or anything financed, Vollkasko is effectively mandatory — your bank or leasing company will require it.

How Much Does German Car Insurance Actually Cost?

Premiums vary enormously. A 30-year-old expat driving a VW Golf in Berlin with no German claims history might pay €800–1,200/year for Vollkasko. The same driver in a rural Bavarian town with a 10-year Schadenfreiheitsklasse (SFK) might pay €350–500. The insurance premium depends on a matrix of factors, and understanding them is how you save real money.

The biggest factors: your Schadenfreiheitsklasse (no-claims bonus class, ranging from SF0 to SF35+), the Typklasse of your car (a risk rating assigned to every model based on claims data — check this before you buy), your Regionalklasse (your postcode’s risk rating — Munich is expensive, rural Saxony is cheap), your annual mileage, and whether you garage the car. Age matters too: drivers under 25 pay significantly more. Each of these factors interacts, which is why two people with the same car can pay wildly different premiums.

Before you buy any car, look up its Typklasse. A sporty Audi A3 might sit in a much higher insurance group than a comparable VW Golf, even though they share the same platform. You can check the insurance classification of your model — along with engine specs, dimensions, and full technical data — at automobilisto catalog. The details about your car’s specs directly affect your insurance premium.

What Is the Schadenfreiheitsklasse — And How Does It Work for Expats?

The Schadenfreiheitsklasse (SFK) is Germany’s no-claims bonus system. Every year you drive without filing a claim, you move up one class. SF0 (zero years) means you pay roughly 100% of the base premium. SF10 (ten claims-free years) brings your insurance premium down to about 29%. SF35+ gets you as low as 20%. This single number determines more of your insurance cost than any other factor.

Here is the problem for expats: when you arrive in Germany, you start at SF0 — as if you have never driven a car before. That means premium surcharges of 100–230% compared to an established German driver. But there is a workaround. Many German insurance providers accept a claims history letter from your previous insurer abroad. The letter must state your name, policy period, number of claims-free years, and be written in German or English. Not every insurer accepts this, and the conversion is not 1:1 (they may credit you SF5 for 10 years abroad), but it can cut your first-year premium by 30–50%. Ask before you sign.

Which Car Insurance Providers in Germany Should You Consider?

The German car insurance market is highly competitive. Over 100 insurance providers offer Kfz-Versicherung, from traditional players to fully digital insurers. Car insurance in Germany is not a monopoly — prices vary significantly between providers for the same driver and the same car.

The best approach: use a German comparison portal (Vergleichsportal) to get quotes from multiple car insurance providers in Germany simultaneously. Enter your car details, your SFK, and your postcode, and compare. The overview of car insurance options you receive will show the full range — sometimes the cheapest Vollkasko quote is lower than the most expensive Haftpflicht quote from another insurance company. The insurance market rewards those who compare.

For expats specifically, look for an insurance provider that explicitly accepts foreign no-claims history and offers English-language support. Some form of car insurance is mandatory, and being locked into an overpriced policy because you did not compare is one of the most common — and most expensive — mistakes new drivers in Germany make.

How Do You Get an eVB Number for Car Registration?

The eVB-Nummer (elektronische Versicherungsbestätigung) is the 7-character code that proves you have vehicle insurance. You need it before you can register your car at the Kfz-Zulassungsstelle. No eVB = no registration. The process takes about 5 minutes: choose your insurance provider, enter your personal and vehicle data, select your coverage (Haftpflicht, Teilkasko, or Vollkasko), and the eVB number arrives by email or SMS.

Your insurance policy does not officially activate until the registration is completed at the office. That means you are not paying for insurance before the car is on the road. Once the registration is done, the Zulassungsstelle notifies your insurance company electronically, and your coverage begins. For the full registration process — every document, every cost, every step — see our guide: How to Register a Car in Germany as a Foreigner.

What Happens If You Have a Car Accident in Germany?

If you are involved in an accident, the first steps are always the same: secure the scene, call 112 if there are injuries, and exchange information with the other party. Then you need to handle the insurance side.

If the accident was not your fault: the other driver’s Haftpflicht covers your damage. You file a claim against their insurance company. If the other party is not present — say, someone scratched your car in a parking lot and left — file a police report immediately and contact your insurance company. Without a report, your claim is much harder to pursue.

If the accident was your fault: your Haftpflicht covers the other party’s damage. If you have Vollkasko, it also covers damage to your own car (minus the Selbstbeteiligung / deductible, typically €150–500). Filing a Vollkasko claim moves your SFK down, which increases your premium the following year. For minor damage, it is sometimes cheaper to pay out of pocket than to lose your no-claims bonus. Run the numbers before you decide.

How Do You File a Car Insurance Claim in Germany?

Filing a car insurance claim in Germany follows a specific process. Contact your insurance company as soon as possible — most insurance policies require notification within one week of the event. Provide: date, time, location, description of what happened, the other party’s details (name, insurance, license plate), and photos of all damage. A European Accident Report form (Europäischer Unfallbericht) is extremely helpful — keep one in your glove box.

If you have crashed into a parked car and the other party is not present, you are legally required to wait a reasonable amount of time and leave your contact details. Then report the incident to the police and to your insurance. Driving away without doing this is Unfallflucht (hit-and-run) and a criminal offence in Germany — regardless of how minor the damage appears. For claims involving personal injury, or if you suspect fraud, report the matter to the central office of car insurers (Zentralruf der Autoversicherer, Tel. 0800-250 260 0), which is operated by the German Insurance Association (GDV) and can identify any vehicle’s insurer by license plate.

Does Your Insurance Provide Roadside Assistance or a Rental Car?

Many Vollkasko and some Teilkasko insurance policies include or offer add-on breakdown insurance (Kfz-Schutzbrief). This covers roadside assistance in Germany and often across Europe: towing, on-site repairs, hotel costs if you are stranded, and in some cases they provide a rental car while your car is being repaired. The cost for a Schutzbrief is typically €10–20/year — one of the best-value add-ons in the German insurance market.

In the case of a breakdown or accident where you need immediate help, your insurance provider’s 24-hour hotline is your first call. If you do not have a Schutzbrief, the alternative is ADAC membership (€54–139/year) or a standalone roadside assistance policy. The event of a breakdown on the Autobahn at 10 PM in winter is not the moment to discover you have no coverage. Check your insurance policy now. Add the Schutzbrief if it is not already included. You will thank yourself later.

When Should You Switch Insurance — And How?

Most car insurance policies in Germany renew on January 1st. The deadline to cancel and switch is November 30th (Kündigungsstichtag). If you want to change your insurance provider for the coming year, you must send a written cancellation to your current insurer by this date. After November 30th, you are locked in for another 12 months.

October and November are “wechselsaison” — switching season. This is when insurance providers offer the most aggressive pricing to attract new customers. It is the best time to compare quotes and move. You can also switch mid-year if your insurer raises your premium (Sonderkündigungsrecht) or after filing a claim. Your new insurer handles the paperwork — you just need to provide your vehicle details, SFK, and the new eVB number to the Zulassungsstelle.

If you bought your car through a private sale, our Buying a Used Car in Germany Privat: 9-Step Guide walks you through the insurance and registration steps as part of the full purchase process. For the best used cars to consider in Germany, check our Best Used Cars in Germany 2026: Gebraucht Buyer’s Guide.

Frequently Asked Questions About German Car Insurance

Is car insurance mandatory in Germany?
Yes. Kfz-Haftpflichtversicherung (third-party liability insurance) is the minimum legal requirement. You cannot register your car without it. Driving without insurance is a criminal offence.

What is the difference between Teilkasko and Vollkasko?
Teilkasko covers damage to your own car from external events (theft, fire, storm, animals, glass). Vollkasko covers all of that plus damage to your own car from accidents you cause, including vandalism and single-vehicle crashes.

How much does car insurance cost for an expat in Germany?
Without German claims history: €800–1,200/year for Vollkasko on a mid-range car. With 10+ years SFK: €350–600. Bring a claims letter from your previous country’s insurer to reduce the premium.

Can I transfer my no-claims bonus from abroad to Germany?
Many German insurers accept a claims history letter. Not all, and the conversion is partial. Ask specifically before signing. It can save 30–50% on your first year.

What does the eVB number cost?
Nothing. The eVB is free — it is simply a confirmation code from your chosen insurer. You pay for the insurance policy itself, not for the eVB number.

When can I switch my car insurance?
By November 30th for the following year. Also mid-year if your premium is raised or after a claim (Sonderkündigungsrecht).

Useful guides and related reading

• 9-Step Buying Guide — how to buy a used car from a private seller in Germany and avoid the biggest risks.
• TÜV Guide — what the inspection covers, how much it costs, and why an expired report can stop your registration immediately.
• German Used Car Market Guide — price trends, buying patterns, and what the market is really doing right now.
• Kaufvertrag PDF — free purchase contract template for private car sales in Germany.
• Inspection Checklist PDF — free checklist for checking a used car before purchase.
• Verified Specifications — cross-check engine, trim, equipment, and technical data before registration or purchase.