Car Insurance
(KFZ-Versicherung) Explained
Brought a car to Germany? Or planning to buy one here? Either way, you'll need car insurance before you can even put plates on it. Liability coverage (Haftpflicht) is required by law, and without it, the registration office won't hand over your plates. Period.
This guide walks you through the whole process: types of coverage, how pricing works, ways to keep costs down, and how to actually get insured.
⚠️ Important: Car Insurance is Mandatory!
You cannot register a car in Germany without proof of liability insurance. You'll need an eVB number (elektronische Versicherungsbestätigung) from your insurer before going to the Zulassungsstelle (registration office).
💡 Tip for Newcomers
Germany uses a no-claims bonus system (SF-Klasse) based on your accident-free driving years. As a newcomer without German driving history, you may start at a basic level with higher premiums. Some insurers accept proof of claims-free years from your home country!
What is KFZ-Versicherung?
KFZ-Versicherung (short for Kraftfahrzeugversicherung) is simply German for car insurance. If you own or drive a car here, this is non-negotiable.
Germany splits car insurance into three tiers. Only the first one, liability (German: Haftpflichtversicherung), is mandatory. The other two are optional but can save you a lot of headache if something goes wrong.
One thing that catches many newcomers off guard: your premium depends heavily on your SF-Klasse, a no-claims bonus system that rewards accident-free years. If you are new to the country and have no German driving record, you will likely start with higher premiums. But there are ways to bring that down. More on that below.
Key German Terms You'll See
Three Types of Car Insurance in Germany
Understanding the difference is important for choosing the right coverage
Haftpflichtversicherung
Liability Insurance
Covers damage you cause to others (people, vehicles, property). Required by law - you cannot register a car without it.
- Personal injury to third parties
- Damage to other vehicles
- Property damage
Teilkaskoversicherung
Partial Coverage
Protects your own vehicle against certain events that are not caused by you.
- Theft and break-in
- Natural disasters (hail, storm, flood)
- Glass damage, animal collisions
Vollkaskoversicherung
Comprehensive Coverage
Includes everything in Teilkasko plus protection for self-caused accidents and vandalism.
- All Teilkasko benefits
- Self-caused accidents
- Vandalism, hit-and-run damage
Step-by-Step: How to Get Car Insurance
As a newcomer, follow these steps to insure and register your car
Compare Insurance Options
Use a comparison tool to find the best coverage for your situation. Consider whether you need just Haftpflicht (liability) or also Kasko coverage.
💡 Tip: New/leased cars typically need Vollkasko. Older cars may only need Haftpflicht or Teilkasko.
Choose a Policy and Get Your eVB Number
When you sign up for insurance, you'll receive an eVB-Nummer (electronic insurance confirmation) - a 7-character code. This is essential for registering your car.
💡 Tip: The eVB number is usually sent by email or SMS within minutes. Keep it ready!
Register Your Car at the Zulassungsstelle
Bring your eVB number, vehicle documents (Fahrzeugbrief/Zulassungsbescheinigung Teil II), ID, and proof of address to the registration office.
💡 Tip: Many cities now allow online registration or require appointments. Check your local Zulassungsstelle website.
Get Your License Plates
After successful registration, you'll receive your Kennzeichen (license plates). Your insurance is now active and you can legally drive!
💡 Tip: You can often choose a custom license plate number for an extra fee.
Buying a car? You might need a loan too.
Many expats finance their first car in Germany with a personal loan. Interest rates vary a lot between providers, so comparing upfront can save you hundreds per year.
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What Affects Your Car Insurance Cost?
German car insurance pricing is not random. Here are the main factors that determine what you pay.
SF-Klasse (No-Claims Bonus)
This is the single biggest factor. Each year you drive without causing an accident, your class goes up and your premium drops. New to Germany? You likely start at SF 0 or SF 1/2, which means paying more until you build up history.
Typklasse (Vehicle Classification)
Every car model in Germany gets a Typklasse rating based on accident and theft statistics. A Volkswagen Golf has a different risk profile than a BMW X5. You can check your car's Typklasse on the GDV website before buying.
Regionalklasse (Where You Live)
Insurance costs vary by region. Big cities like Berlin, Hamburg, and Munich tend to have higher premiums because of more traffic, more accidents, and more theft. Rural areas are usually cheaper.
Annual Mileage
The less you drive, the less you pay. Be honest about your estimated annual kilometers. If you only use your car on weekends, that is a different risk than a daily 80 km commute.
Deductible (Selbstbeteiligung)
Choosing a higher deductible lowers your premium. A typical Teilkasko deductible is EUR 150, and for Vollkasko it is EUR 300. The trade-off: you pay more out of pocket if something happens.
Driver Age & Experience
Younger drivers and those with less experience generally pay more. If you are under 25, expect higher rates. Adding an experienced second driver to the policy does not always help, either.
Bottom line: Two people with the same car can pay very different premiums depending on where they live, how much they drive, and their claims history. That is exactly why comparing before you sign up matters so much.
8 Ways to Save on Car Insurance in Germany
Practical tips that actually work, especially for newcomers
Compare every year before November 30th
The annual switching deadline is November 30th. Prices change every year, and loyal customers rarely get the best deal. Set a reminder for early November and run a fresh comparison.
Choose a higher deductible
Increasing your Selbstbeteiligung from EUR 150 to EUR 300 on Vollkasko can noticeably reduce your annual premium. Just make sure you can afford the out-of-pocket cost if you need to claim.
Pay annually, not monthly
Monthly payments are convenient but almost always more expensive over the year. If you can handle the lump sum in January, switch to annual billing (jaehrliche Zahlung).
Consider Werkstattbindung
Werkstattbindung means you agree to use insurer-approved workshops for repairs. The upside? Lower premiums. The downside? You cannot pick your own mechanic. For older cars, this trade-off usually makes sense.
Reduce your stated annual mileage
If you actually drive less than you estimated when signing up, contact your insurer to update your annual mileage. Less driving = lower risk = lower premium. Just be truthful about it.
Park in a garage
Parking your car in a locked garage instead of on the street can reduce your Teilkasko or Vollkasko premium. Insurers see covered parking as lower theft and weather damage risk.
Transfer SF-Klasse from a family member
In Germany, you can sometimes transfer a family member's no-claims bonus to your own policy. This works best when a parent or spouse has a high SF-Klasse they are not using. Rules vary by insurer, so ask.
Bring proof of claims-free years from abroad
If you drove accident-free in your home country, get an official confirmation letter from your previous insurer. Many German insurers accept this as proof and will start you at a higher (cheaper) SF-Klasse.
The SF-Klasse System: Why It Matters So Much
Understanding Schadenfreiheitsklasse is key to getting fair car insurance rates in Germany
SF-Klasse stands for Schadenfreiheitsklasse, which translates to "claims-free class." Think of it like a loyalty reward, but for safe driving. Every year you go without causing an accident that leads to an insurance claim, you move up one class.
The higher your SF class, the bigger your discount on the base premium. Someone at SF 20 pays a fraction of what someone at SF 0 pays for the exact same coverage on the same car. The difference can easily be several hundred euros per year.
If you cause an accident and your insurer pays out, you get downgraded. How far you drop depends on your current class and the insurer's rules. Some insurers offer "Rabattschutz" (bonus protection) as an add-on, which prevents downgrading after a single claim, though it comes at an extra cost.
For newcomers without German driving history
Most insurers start newcomers at SF 0 or SF 1/2. This means you pay significantly more than a long-term German resident with the same car. But you are not stuck there forever:
- Ask your home-country insurer for a claims-free confirmation letter. Many German providers accept these.
- Check if a family member can transfer their SF-Klasse to you.
- After your first accident-free year in Germany, your class will already improve and your premium will drop.
When and How to Switch Your Car Insurance
Most car insurance contracts in Germany renew automatically on January 1st each year. If you want to switch to a different provider, you must cancel your current policy by November 30th. Miss this date and you are locked in for another 12 months.
But there are exceptions. German law gives you special cancellation rights (Sonderkuendigungsrecht) in these situations:
- Premium increase: If your insurer raises your rate without reducing your coverage, you can cancel within one month of receiving the notification.
- After a claim: Both you and your insurer have the right to cancel within one month after a claim is settled.
- New vehicle: When you buy or sell a car, you can switch insurance as part of the registration process.
Car Insurance Germany FAQ
Answers to what newcomers and expats ask most about German car insurance
What is an eVB number and why do I need it?
The eVB-Nummer (elektronische Versicherungsbestätigung) is a 7-character code that proves you have valid car insurance. You'll receive it from your insurer after signing up. Without it, you cannot register your car at the Zulassungsstelle. It's one of the essential documents you need to get license plates.
Do I need a Schufa score for car insurance?
No! Car insurance in Germany does not require a Schufa check. Insurers don't check your credit history, so newcomers without German financial history can get coverage without issues. What matters is your driving history, not your credit.
Can I transfer my no-claims bonus from my home country?
Possibly! Many German insurers accept proof of claims-free driving years from abroad. You'll need an official letter from your previous insurer confirming your history. Not all insurers accept this, and the amount of discount varies - ask when comparing quotes.
Why are my premiums so high as a new driver in Germany?
Germany uses the SF-Klasse (Schadenfreiheitsklasse) system. Without German driving history, you typically start at SF 0 or SF ½, which means higher premiums. Each accident-free year in Germany increases your class and lowers your premium. Some insurers let you transfer foreign no-claims history to get better rates.
What coverage do I need for a new car vs an old car?
New cars, especially leased or financed vehicles, typically require Vollkasko (comprehensive coverage) - often this is required by the dealer/bank. For older cars worth less than €5,000, many people only get Haftpflicht (liability) or Teilkasko (partial coverage) to save money.
What factors affect car insurance cost in Germany?
The main factors are your SF-Klasse (no-claims history), Typklasse (your car model's risk rating), Regionalklasse (where the car is registered), annual mileage, driver age, deductible amount, and payment frequency. Two drivers with the same car can pay very different premiums depending on these variables. Use our comparison tool above to see what applies to your situation.
How can I save money on car insurance in Germany?
Compare providers annually before November 30th. Choose a higher deductible (Selbstbeteiligung). Pay annually instead of monthly. Consider Werkstattbindung (using insurer-approved workshops). Reduce your stated annual mileage if accurate. Park in a garage. Transfer SF-Klasse from a family member if eligible. Small changes can add up to significant savings.
When can I switch my car insurance?
Most car insurance contracts run for one year. Regular cancellation (ordentliche Kuendigung) must be submitted by November 30th for the switch to take effect on January 1st. You also have special cancellation rights (Sonderkuendigungsrecht) after premium increases, after a claim is settled, or when you change vehicles.
Is my insurance valid for driving in other EU countries?
Yes! German car insurance covers you in all EU/EEA countries and countries that recognize the Green Card system. For trips outside Europe, check with your insurer. If you have an accident abroad, contact your insurer immediately and fill out an accident report (Unfallbericht).
What happens if I have an accident?
In case of an accident: stay calm, secure the scene, call police if there are injuries or significant damage. Exchange details with the other party and take photos. Report the accident to your insurer within one week (sooner is better). Your insurer will guide you through the claims process.
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