Car insurance, known as “Kfz Versicherung” or “Autoversicherung” in Germany, is a mandatory requirement for all drivers. If you plan on driving in Germany, obtaining at least third-party liability insurance for your vehicle is necessary to register it and acquire a German license plate. Here’s a detailed guide on car insurance in Germany:
Mandatory Car Insurance in Germany:
Compulsory Coverage: Third-party liability insurance is the minimum required coverage for all drivers in Germany. Registration Requirement: To register your vehicle and obtain a German license plate, you must display the insurance certificates in your vehicle at all times.
German Auto Insurance Market:
Diverse Market: Germany boasts one of the largest auto insurance markets in Europe, with around 90 insurance companies as of 2016. Prominent Companies: Notable insurance providers include Allianz Direct Versicherungs-AG, AXA, DA Direkt, HDI, and Helvetia.
Using Foreign Car Insurance in Germany:
EU/EFTA Drivers: Drivers from EU/EFTA countries can use insurance from their home country. Non-EU residents may use international green card insurance. Long-Term Residents: Residents staying in Germany for an extended period should acquire a German insurance policy.
Types of Car Insurance in Germany:
Third Party (Haftpflicht): Covers damage to other vehicles and medical costs in accidents but does not cover your own costs. Partial Cover (Teilkasko): Extends coverage to some costs related to damage to your own vehicle, including theft, fire, and storm damage. Comprehensive (Vollkasko): Provides full coverage, including damages to your own and other vehicles in accidents that are your fault.
Car Insurance Costs:
Factors Influencing Costs Driver age, experience, vehicle value, number of drivers insured, location, and vehicle usage. Premium Reductions Paying a higher excess, annual upfront payments, and maintaining a no-claims bonus can reduce premiums.
Additional Car Insurance Options in Germany:
Breakdown Insurance Covers towing, replacement vehicles, and transport of ill or injured individuals. Legal Insurance: Covers legal expenses in case of disputes requiring court involvement. Equipment Coverage Protects expensive equipment stored in the vehicle against damage or theft. Extended Elementary Damage Recommended for areas prone to avalanches or extreme snowfall. Rental Car Insurance Provides extra protection when renting vehicles.
Bonuses and Penalties:
No-Claims Bonus System: Offers discounts based on claim-free periods, ranging from 35% to 80%. Penalties: Increased premiums for young or inexperienced drivers, at-fault accidents, and traffic violations.
Choosing Car Insurance in Germany:
Considerations: No-claims bonus policies, coverage details, excess options, company reputation, claims process, and roadside assistance. Application Process: Provide German driving license, personal ID, driving history, German bank account details, and vehicle purchase documents. Insurance Documentation: Receive the EVB insurance number and policy details upon purchase.
Making a Car Insurance Claim:
Contact Insurer: Inform the insurer as soon as possible after an accident. Claims Process: Exchange details, take pictures, collect witness information, and submit the accident report form. Police Involvement: Contact the police for serious accidents or if the other party is absent.
Cancelling or Changing Insurance:
Automatic Renewal Contracts often renew automatically; provide at least one month’s notice to cancel or switch providers. Exceptional Circumstances Terminate under exceptional circumstances, such as increased premiums or dissatisfaction with claim handling.
Complaints and Resolution:
File a Complaint: Direct complaints to the insurer’s complaints department initially. Escalate to BaFin: If unsatisfied, escalate the complaint to BaFin (German Federal Financial Supervisory Authority) or the Insurance Ombudsman for independent resolution. Legal Recourse: Legal action is a last resort, incurring personal legal fees.
Roadside Assistance in Germany:
Automobile Clubs: ADAC (Allgemeine Deutsche Automobil-Club) and AvD (Automobil-Club von Deutschland) offer national breakdown and recovery services. Emergency Phones: Free roadside assistance can be called from emergency phones along roadsides. Emergency Contacts: In case of an accident, call the police (110) or ambulance (112).
Useful Resources:
BaFin: German Federal Financial Supervisory Authority, regulating insurance companies. Central Office of Car Insurers: Provides information on insurance in case of an incident and details on a vehicle’s insurance policy.
Navigating the intricacies of car insurance in Germany is vital for a smooth and protected driving experience. Understanding coverage options, costs, and the claims process ensures that drivers can make informed decisions and safeguard their interests on the road.