Car Insurance Guide

Your car provides a great degree of freedom. You can sit behind the wheel for a quick city getaway, visit your family in the country, or buy everything you need for a house party in one go. Your car opens up many opportunities for you and makes life easier.

However, to register your car for road driving, you will need liability auto insurance. There is a good reason why this insurance is legally required. In 2019, there were a total of 2,667,863 car accidents in Germany. That means there are 7,000 collisions every day. It is increasingly important to insure your car. And this applies even to occasional drivers, who are on the road in their older cars as well as to those who cover significant distances every day.

Everything you need to know: Your ultimate auto insurance guide

From partial and full comprehensive insurance to Mallorca Policy (driving a rental car abroad) and driver protection, we've got you covered with everything you need to know as a driver in our guide to car insurance. We answer the following questions:

What is auto insurance, and what do I need it for?

Car insurance is mandatory for all car owners in Germany. Without insurance, you are not allowed to drive your car. There are various rates that cover you, your car and third parties. These different rates are grouped in several tiers, covering a wide range of incidents, ranging from damage and accidental damage to other types of damages. Basic coverage, also known as liability auto insurance, is mandatory. In addition, you can choose a partial or full comprehensive protection level.

Liability auto insurance, partial coverage, and full comprehensive coverage: What's the difference? Which rate is right for me?

Liability car insurance

Liability auto insurance protects you from costs that may result from damage to property and injury to others if you are in a car accident. You are liable to pay damages in these cases - not only for the immediate damages, but also for the consequential damages caused by the accident. This includes both damage to another person's vehicle and damage to property. An example of this is the damage you cause if you crash your car into the wall of a building. In the worst case, people can be injured in an accident. The financial consequences you incur will be compensated by your liability insurance.

In addition, liability auto insurance always includes known passive legal protection. This protects you in the event that someone unlawfully demands damages from you. Your insurance company will check whether the victim's claim is really justified and valid. For example, if your car throws a rock that hits the windshield behind you, you don't have to pay for the damage. If someone makes such a claim against you, passive legal protection ensures that you can defend yourself.

Comprehensive partial protection

Comprehensive protection, either partial or full, is different from liability car insurance. This offers additional protection which is optional. Third party liability protection is included in both of these rates. In general, comprehensive partial protection protects against damage you didn't cause yourself. This could be a rock hitting your windshield while you're driving, theft, or storm damage.

Is comprehensive partial protection right for me?

In general, comprehensive partial protection is a good idea if your car is worth more than 4,000 euros. If you are unsure about getting this policy, ask yourself: What impact will having my car damaged or lost on my financial situation? You should also consider whether you can afford to pay a monthly or annual premium for this type of policy. It all comes down to weighing the risks and deciding what makes financial sense.

Full comprehensive protection

Full comprehensive protection offers a higher level of protection. It also protects against damage to your own car - even if you cause the accident yourself. This is especially beneficial if you are driving a very expensive or new car.

Do I need full comprehensive protection?

Usually, getting a full comprehensive coverage policy is the best option if you have a new car that is less than three to five years old, or if you drive a car that has a high value.

It is also usually best practice, and sometimes mandatory, to get full comprehensive coverage if you rent a car.

How much does car insurance cost?

The price you pay for car insurance varies depending on how old you are, the model of car you drive, and many other factors. At, we explain in detail the factors that affect the price of your car insurance. We also discuss the main factors below.

Car insurance: Bonus-malus class

Your bonus-malus class (often referred to as SF class in Germany) shows how long you have driven without accidents. The longer you are claim-free, the higher your SF class and the cheaper your insurance will be. Beginners usually start at SF grade 0. The highest SF grade is 35 with many insurance companies. If you are in this class, you usually only pay 20 percent of the car insurance premium rate.

In families, claim-free years can also be passed down. For example, if you inherit a car and insurance from your grandparents, their claim-free years will be transferred to you. However, your claim-free years cannot be greater than the number of years you have had a driver's license.

Also, your SF class only affects the price of full comprehensive or third party liability insurance. This system does not apply to partial comprehensive protection. The reason is that partial comprehensive protection is primarily meant to protect you from risks such as theft or natural disasters. Your driving history has no effect on these factors

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