In Germany, all vehicles need insurance (Kfz-Versicherung). When you buy a car, you must choose car insurance. It’s part of the cost of owning a car.
This guide helps you find the best, cheapest car insurance.
How to choose car insurance
1. Compare options
When you buy a car, you must choose a car insurance. Use Verivox or Tarifcheck to compare car insurance prices.
If you don’t speak German, Feather is the only English-speaking car insurance. They also recognise your driving experience in other countries, so you can get a much lower price.
2. Get an eVB number
After you choose car insurance, you get an eVB number from the insurer. It usually takes a few hours.17 This number proves that your car is insured. You need it to register your vehicle at the Kfz-Zulassungsstelle.
Levels of coverage
There are 3 levels of car insurance coverage: Haftpflicht, Teilkasko and Vollkasko.
Haftpflicht
Liability (Haftpflicht) car insurance is the minimum level of coverage. It’s cheaper than Teilkasko or Vollkasko insurance.
Haftpflicht insurance covers…23
- Damage to other people
If you hit someone with your car, your insurance pays for their medical bills and rehabilitation costs. - Damage to other cars
If you crash into another person’s car, your insurance pays to repair or replace their car. - Damage to other people’s things
If you drive over someone’s bicycle, your insurance pays to repair or replace the bicycle.
It does not cover…
- Damage to your own car
If you cause an accident, your insurance will not pay to repair your car. - Damage caused by other drivers
If another driver hits your car, their insurance pays for your repairs. Your insurance does not pay anything. If the other driver disappears (hit-and-run), you must pay for the repairs yourself. - Theft, break-ins and vandalism
- Animal collisions
- Fire, storms, floods and natural disasters14
- Broken or cracked windows
Teilkasko
Partially comprehensive (Teilkasko) car insurance covers…
- Everything that Haftpflicht insurance covers
It covers damage to other people and their things. - Theft and break-ins
If someone steals your car, or damages your car while trying to steal it. - Fire, storms, floods and natural disasters14
For example, a hail storm breaks your windscreen and destroys your roof. - Broken or cracked windows
If you drive on the Autobahn, and a rock cracks your windscreen, the insurance pays to replace the windscreen. - Animal collisions
For example, if you hit a deer.
Some Teilkasko insurances also cover vandalism.1
Vollkasko
Comprehensive (Vollkasko) car insurance covers…
- Everything that Haftpflicht and Teilkasko insurance cover
It covers damage to other people and their things, theft, natural disasters, cracked windows and animal collisions. - Damage to your own car
It pays to repair your car, even when the accident is your fault. - Vandalism
If an angry person scratches your car or break your windows, your insurance pays for the repairs. Some Teilkasko insurances also cover vandalism.1 - Hit-and-runs
If another driver hits your vehicle, then disappears, your insurance pays for the repairs.
Vollkasko insurance costs twice as much as Teilkasko.16 Vollkasko makes more sense for new vehicles, and Teilkasko makes more sense for older vehicles.15
Driver classes
Every driver gets a Schadenfreiheitsklasse. It goes up every year. It goes down when you make an insurance claim. A high Schadenfreiheitsklasse makes your car insurance cheaper.
| Years without claims | Schadenfreiheitsklasse | Car insurance discount |
|---|---|---|
| 0-2 years | SF1 | 0% |
| 2 years | SF2 | ~15% |
| 3 years | SF3 | ~30% |
| 4 years | SF4 | ~40% |
| 5 to 8 years | SF5 to SF8 | 45 to 50% |
| 9 to 15 years | SF9 to SF15 | 55 to 60% |
| 16 to 25 years | SF16 to SF25 | 65 to 70% |
| 26 years or more | SF26 and above | 75 to 80% |
If you have driving experience in other countries, tell your insurer. You might start with a higher Schadenfreiheitsklasse, and your insurance will be cheaper. Each insurer has different rules for recognizing driving experience. They all ask for different documents.
If you use car sharing, tell your insurer. Some insurance companies count car sharing as driving experience.10 You might start with a higher Schadenfreiheitsklasse, and your insurance will be cheaper.
When you have an accident, and you make an insurance claim, your Schadenfreiheitsklasse can go down. It’s sometimes cheaper to keep your high Schadenfreiheitsklasse, and pay for repairs yourself.13 If the accident was not your fault, it does not affect your Schadenfreiheitsklasse.9
When you change insurers, you keep your Schadenfreiheitsklasse.18
How to get cheaper car insurance
Car insurance can be really expensive if you are a new driver.8 There are a few ways to pay much less for the same coverage.
- Choose yearly payments
Make yearly payments instead of monthly payments, and save 4% to 9% on car insurance.5 - Choose a higher deductible
Choose a €150 to €300 deductible, and save 18% to 25% on car insurance.5 - Get a Werkstattbindung
Make insurance repairs in approved garages, and save 10% to 20% on your car insurance.7 You often get better service with a Werkstattbindung. You might get a free rental car while they repair your vehicle. Your claims are usually approved faster. - Get seasonal plates
If you only drive during the summer months, don’t insure your vehicle during the winter months. Out of season, you can’t drive the vehicle, and you can’t park it on public streets.6 - Combine your insurance policies
It’s cheaper to insure multiple vehicles with the same company. Insurance for a second vehicle (Zweitwagen) is usually cheaper.11 You sometimes get a discount if you combine car insurance, liability insurance and home contents insurance. - Use your family’s car insurance
If your parents or spouse live in Germany, they can insure your car and register you as a second driver (Zusatzfahrer).2 Your parents get cheaper car insurance because they have more driving experience. If you are under 25 years old, it will be much cheaper.3- Get a family discount
Some insurance companies have discounts (Familientarife) for the family of existing customers.4
- Get a family discount
- Include it in your tax declaration
Vehicle insurance is sometimes tax deductible.12 If you are a permanent employee, you can deduct part of the cost. If you are self-employed and only use the vehicle for work, you can deduct the full cost.19 - Be a good driver
If you make no claims, your Schadenfreiheitsklasse goes up every year, and your car insurance becomes cheaper. After a few years of safe driving, you get a big discount.
What to do next
Buy a car
After you get an eVB number from your car insurer, you can register your vehicle and drive it on German roads. Don’t forget to plan for the cost of owning a car.
Get a Green Card
To drive your car outside the European Union, you need a Green Card. It lists the countries where your car insurance is valid. They often ask for it at border crossings. If your green card is not accepted, you can usually buy car insurance at the border.
You can get a Green Card from your car insurer. It’s usually free.22
Find cheaper insurance
Your car insurance renews automatically every year. A few months before it renews, use Verivox or Tarifcheck to look for cheaper car insurance. Add it to your calendar.
When you change insurers, you keep your Schadenfreiheitsklasse.18
If you have a car accident
- Call the police
If someone is injured, you must call the police. They can also secure the accident scene and reroute traffic. - Fill an accident report
Use the European accident report (Europäischer Unfallbericht) template. Write down the other person’s name, address and plate number.20 If the other driver runs away, ask the Zentralruf der Autoversicherer. They can help you find the insurance details of the other person, even in other EU countries.21 - Tell your insurance
In some cases, it might be cheaper to pay for the repairs yourself, and keep your Schadenfreiheitsklasse. If the accident is not your fault, your Schadenfreiheitsklasse is not affected.
Sources and footnotes
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Settle in Berlin, personal experience ⤴
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check24.de, Wikipedia (June 2026) ⤴
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dieversicherer.de (June 2026) ⤴