Types of Vehicle Insurance Cover in Germany

Understanding Types of Vehicle Insurance Cover in Germany

Understanding the different types of vehicle insurance cover in Germany is essential for having a car in Germany and will make your life much easier regardless of whether you’re a young student still enrolled in a university or an adult who commutes long hours to work each day. But, before you can register a car, you will need to present proof of vehicle insurance in case of roadside accidents or any other form of damaged caused to others (or even yourself!).

Unfortunately, vehicle insurance does not come cheap in Germany. It will add quite an amount to your monthly budget and can be a daunting expense. You should keep in mind, though, that it will save you from having to cover hefty car repairs on your own!

Here are the different types of car insurance you can get in Germany.

3 Main Types of Vehicle Insurance Cover in Germany

There are three main types of vehicle insurance that you can opt for when living in Germany. Remember that cheapest isn’t always the best. You should research well into the different coverage each insurance policy offers, compare it to your needs and make a knowledgeable decision that gives you the best value.

1. Third-Party or Liability Insurance (Haftpflicht)

You already know that having at least a minimal form of car insurance is a legal requirement in Germany. If you’re a young student who has just purchased their first car, or a new expat in the country, you are probably looking for the cheapest car insurance policy to ensure you don’t face any legal troubles.

Third-party insurance is the most basic type of car insurance in Germany. It has a minimum coverage level. Therefore, you can only claim third-party insurance to cover any damage costs that arise for the other person due to an accident that you are legally responsible for. This means that it will pay for the other party’s medical and vehicle repair bills, but you will need to cover your damages.

While this may be a quick and easy solution to finding a cheap insurance plan that won’t cause you to go over budget, remember that vehicle repairs are quite expensive in Germany. Covering your medical bills and paying to fix up your car might just leave your bank account completely drained. That’s why most people in Germany opt for one of the two remaining insurance policies instead of a third-party insurance plan.

2. Third-Party Fire and Theft or Partial Insurance (Teilkasko)

The second type of insurance plan you can consider in Germany is the Third Party Fire and Theft policy. It acts as a complementary policy to the first type that we discussed above. This means that you will also get coverage for your vehicle aside from covering the damage to the other party. However, this policy only covers certain types of damages to your car. You can find them listed below:

  • Theft of your car or any of its parts.
  • Fires and explosions.
  • Electrical issues or short circuits.
  • Broken windows and windscreens due to the weather.
  • Accidents with wild animals.
  • Damages caused by Marten bites.
  • Damages caused by hail, storm, flooding, or lightning.

As you can see, this is a much more thorough policy that can protect you from ending up with an empty wallet after bad weather or random animal attacks. The important point to keep in mind here is that different companies offer different varieties of coverage under the Teilkasko policy. Therefore, you can expect the coverage and price range to vary based on the car insurance premiums you choose.

In general, partial insurance has a deductible amount of 150€.

P.S. If you’re unsure of which insurance company can offer you the most coverage under partial insurance at a reasonable price, you can reach out to M.W. Expat Solutions! 

3. Fully Comprehensive Insurance (Vollkasko)

Lastly, we have a fully comprehensive insurance policy. Just as the name suggests, this type of vehicle insurance covers full costs of all the damage done to your car and the other vehicle when you’re responsible for the accident.

The Volkasko policy is the most substantial insurance policy you can find in Germany. It includes everything that is covered under the third party and partial insurances while also taking care of any damage due to vandalism or other incidents.

Some fully comprehensive insurance policies even cover major medical injuries caused by roadside accidents. If anybody involved in the accident faces disability or death, fully comprehensive insurance pays some of the costs to provide financial ease. However, this varies from company to company, so be sure to explore everything your insurance provider covers before signing up.

Due to the expansive nature of this policy, it is the most expensive type. But in case of accidents, you are only required to pay between 300€-500€, while the insurance company covers the rest. Do keep in mind that the cost can vary depending on your age, driving record, and other factors.

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