Car Insurance in Germany

Yes, car insurance is mandatory in Germany. Each driver is required to have a legal minimum of third-party liability insurance which covers damage and/or injury to other people. If you would like damage to your own vehicle covered, you may purchase an increased level of coverage called comprehensive coverage.

Third-party liability car insurance is mandatory in Germany. Without this insurance, you are not allowed to drive your car. It supports you financially should you cause damage to someone else, their property, or assets. However, it does not cover damage you cause to your own vehicle. To ensure your own vehicle is covered, you will need the Fully Comprehensive policy.

Yes, a foreigner can buy a car in Germany with a foreign license; however, after purchase, there are rules and regulations required in order to legally drive the vehicle in Germany. Foreigners must exchange their foreign license for a German one, usually within six months. Obtaining a German license usually requires passing both a written and practical driving test.

It is important to note that Germany requires drivers to carry a legal minimum of third-party liability insurance, and non-residents of Germany face restrictions when registering a vehicle. NATO and military personnel may be eligible for exceptions, depending on their rank or status, as well as the agreement in place between the expat’s home country and Germany. For current rules and regulation, non-residents residing in Germany should contact the relevant personnel office for more information on how to legally drive on Germany roadways.

The minimum cover for Third Party Liability in Germany is €7.5m. There is no deductible or excess for Third Party Liability claims.

You have insurance cover within the geographical borders of Europe, including the UK, as well as the non-European areas that are within the scope of the European Union. Your insurance cover is based on the insurance required by law in the state of visit, but at least according to the scope of your insurance contract.

If you are in a car accident in Germany, it’s important to follow these established procedures to maintain safety and protect yourself legally:

1. Safety first. Check for injuries to all involved and dial 112 if an emergency service such as an ambulance is needed.
2. Call the police. Even for minor accidents, the police need to be notified to evaluate damage and file an official report, which is necessary for making an insurance claim.
3. Exchange information. Gather information from others involved in the accident, including the driver’s name, address, phone number, insurance company, and policy number. You are also legally required to provide your information to the other driver. If you leave the scene without doing so, it is considered a criminal offense.
4. Gather photos. If you’re able, take photos of the accident including damage to the vehicles and broader pictures to illustrate the scene of the accident. These photos can assist you when making an insurance claim.
5. Notify your insurer. Report the accident immediately to your insurance company and file a claim.
6. Get a repair estimate. Make an appointment with an authorized repair shop to conduct a damage assessment. If you’re unsure which shops are authorized, contact your insurer.
7. Maintain records. Keep all documents related to the accident, such as the insurance paperwork, police/accident report, repair estimates, and any other correspondence. For damage, it’s recommended that records be kept for three (3) years, and for accidents involving medical claims, it’s recommended to retain those for ten (10) years.

If a vehicle meets the legal requirements to drive on roadways and has valid registration and insurance, it can be driven indefinitely (without a time limit). Please be aware though that as cars age, their inspection requirements change.

• For cars less than 3 years old from the manufacture date, inspections are not required.
• For cars 3-7 years old, an inspection is required every two years.
• For cars over 7 years old, inspections are required once per year.
• Vehicles older than 12 years that fall below certain emissions standards (smog tests) may be banned from driving in high-pollution area, like cities

During the test, called Hauptuntersuchung” (or HU) in Germany, vehicles are inspected for safety and emissions. If the vehicle fails the test, it will require repairs before being authorized to drive on Germany roadways again.