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Cheapest Car Insurance – Germany: A Guide

Cheapest car insurance in Germany: A Guide title card

Do you need the cheapest car insurance – Germany? 

If you are an expat or a foreigner planning to stay in Germany, you might be wondering how to get the best deal on your vehicle insurance. Car insurance is mandatory in Germany, and it can be quite expensive if you don’t know what to look for. 

You can find the cheapest car insurance in Germany from the following companies:

In this guide, we will provide you with information and guidance on various aspects of car insurance in the country. You will learn about the different types of car insurance available in Germany, such as third-party liability insurance, partial coverage, and comprehensive coverage. You will also discover the factors that influence the cost of car insurance, and the ways to save money on insurance premiums. 

By the end of this guide, you will have a better understanding of how to choose the right car insurance company and policy for your needs and budget. 

Related article: Insurance in Germany: Feather Review

What are The Best and Cheapest German Car Insurance Companies? 

Concept of insurance man protective and car  family  health insurance  policy examining

Selecting the best car insurance in Germany is crucial as it ensures financial protection and legal compliance. German car insurance, also known as auto insurance in Germany or vehicle insurance, encompasses various options, such as third-party liability insurance and comprehensive coverage. 

Opting for a reputable German car insurance company not only safeguards your own vehicle but also covers damage to other vehicles and individuals in case of an accident. Comparing car insurance costs and insurance premiums helps find the most affordable option while still ensuring comprehensive coverage. 

A wise choice minimizes financial burdens, provides peace of mind, and guarantees compliance with car insurance in Germany regulations. 

There are many car insurance companies in Germany, such as Allianz, CosmosDirekt, and DA Direkt

Allianz – German Car Insurance Company

Allianz is a prominent name in the car insurance industry in Germany, offering a comprehensive range of auto insurance products. With a legacy dating back to 1899, they were the pioneers in providing car insurance in Germany, establishing a strong foundation in the market. 

Allianz’s car insurance offerings cater to various segments, including commercial clients, providing tailored solutions for mid-sized and large companies. Their commitment to offering quality auto insurance has earned them a reputation as one of the top German insurance companies.


  • Comprehensive Auto Insurance: Allianz offers a range of car insurance products, including comprehensive coverage, ensuring that clients receive extensive protection for their vehicles. This includes “any-driver cover” and coverage for accidental damage to your car or other people’s cars or property.
  • OneTrip Rental Car Protector: Allianz provides a car rental insurance option known as OneTrip Rental Car Protector. This policy offers primary coverage for covered collision, loss, and damage up to $50,000, with the added benefit of 24-hour emergency assistance.
  • Industry Recognition: Allianz has consistently received industry accolades, including ‘Insurer of the Year’ and ‘Excellence in Claims.’ These awards highlight their commitment to delivering top-notch services to their clients.
  • Single Face to the Market: Allianz Commercial streamlines its services for commercial clients, offering a unified approach to the full commercial segment. This ensures convenience and efficiency for mid-sized and large companies seeking third party liability insurance and vehicle insurance.
  • Competitive Car Insurance Costs: Allianz provides cost-effective car insurance options that cater to the diverse needs and budgets of their clients. They understand that affordability is a key factor for individuals and businesses when considering car insurance in Germany.
  • Provide a high level of protection, including any-driver cover and coverage for accidental damage, giving clients peace of mind.
  • Their track record of awards and recognition indicates their commitment to excellence in the auto insurance sector.
  • offers a diverse range of car insurance products, ensuring that clients can choose the coverage that best suits their needs.
  • While Allianz offers competitive pricing, comparing car insurance prices among different German insurance companies is always advisable to ensure the best deal.
  • The array of offerings might be overwhelming for some customers.
  • Allianz’s focus on mid-sized and large companies might make their services less accessible for smaller businesses and individual car owners.

Is It Easy to Get Car Insurance from Allianz?

Getting car insurance from Allianz in Germany is a straightforward process. You can either visit their website or call their customer service for a car insurance quote. 

Allianz offers a variety of policies, including comprehensive car insurance, third-party property damage insurance, and third-party fire and theft insurance, catering to diverse needs. The application process involves providing personal details, vehicle information, and your driving history. 

It’s essential to review the policy details to grasp the coverage and any exclusions. Once satisfied, you can pay the premium. Allianz also simplifies the claims process, allowing you to file a claim online or through their claims department, with clear guidance on supporting documents required, making it convenient for auto insurance in Germany.

What People Say About Allianz

Allianz car insurance in Germany has garnered a mix of reviews from both customers and industry experts. According to Clearsurance, they hold an overall rating of 3.5 out of 5 stars based on customer feedback. 

Allianz’s Comprehensive Car Insurance policy is highly regarded by Forbes and is consistently recognized with industry awards, such as ‘Insurer of the Year’ and ‘Excellence in Claims.’ 

Moreover, Allianz offers comprehensive policies with a broad range of coverage options, including ‘any-driver cover’ and protection against accidental damage to vehicles or property. Nevertheless, it’s crucial to scrutinize policy details and exclusions to ensure they align with your specific needs in the realm of car insurance in Germany.

My Take Allianz Auto Insurance – Germany

Allianz Germany’s car insurance company appears to be a reliable choice, especially for businesses and individuals seeking comprehensive auto insurance. 

The company’s long-standing history and industry recognition inspire confidence in its offerings. Their ‘any-driver cover’ and rental car insurance add valuable options for clients. 

However, it’s important to carefully compare car insurance prices and assess the specific needs of your business or personal situation before committing to a policy. Allianz’s emphasis on serving mid-sized and large companies might make them less accessible for smaller businesses or individuals in search of liability car insurance or rental car insurance.

CosmosDirekt Car Insurance in Germany

CosmosDirekt is a prominent German insurance company that provides a range of insurance products, including car insurance. They pride themselves on offering individualized and competent car insurance policies, catering to the unique needs of their clients. 

Notably, CosmosDirekt offers a telematics-based motor insurance tariff named BetterDrive, aimed at young drivers up to 28 years of age. This innovative initiative competes with similar offerings from established companies like Allianz in Germany, showcasing their commitment to staying competitive in the auto insurance industry.

Highlights of CosmosDirekt German Car Insurance

  • Tailored Insurance Solutions: CosmosDirekt excels in providing personalized car insurance policies, ensuring that clients receive coverage that aligns perfectly with their specific requirements.
  • BetterDrive Telematics: The BetterDrive tariff is a standout feature, especially for young drivers. By using the MyDrive smartphone app, it tracks driving behavior and provides individual risk profiling scores. This offers young drivers the opportunity to potentially reduce their premiums by demonstrating safe driving habits.
  • User-Friendly Application Process: CosmosDirekt simplifies the application process for the BetterDrive tariff, measuring five key risk assessments. This user-friendly approach allows customers to complete the process in minutes using their smartphones.
  • Competitive Premium Reduction: The BetterDrive tariff encourages safe driving by imposing a minimum distance requirement for a premium reduction. However, participants have the flexibility to choose which journeys to record, offering a fair and competitive approach.
  • Established Customer Base: According to Statista, CosmosDirekt boasts a significant customer base in Germany, which attests to its reputation and trustworthiness in the market.
  • Offers individualized insurance solutions ensures that clients receive coverage that best fits their needs
  • The telematics-based BetterDrive tariff allows young drivers to reduce their premiums by demonstrating safe driving habits, making it a valuable option for this demographic.
  • The company’s sizable customer base in Germany reflects its established presence and trustworthiness in the insurance industry.
  • There is a scarcity of detailed information about the specific features and benefits of CosmosDirekt’s car insurance policies, making it challenging to assess their full scope.
  • The BetterDrive initiative, while beneficial for young drivers, may not cater to the broader auto insurance market, potentially leaving other segments underserved.
  • CosmosDirekt faces competition from well-established German insurance companies, making it challenging to stand out in the market.

Is It Easy to Get Car Insruance from CosmosDirekt? 

Getting car insurance from CosmosDirekt in Germany appears to be a hassle-free process, as it is the country’s largest direct insurer with a strong online presence. The online application process can be easily completed within minutes using a smartphone, offering convenience to potential clients. 

The steps involve providing personal information, vehicle details, and driving history, selecting the desired coverage, reviewing policy details, submitting the application, and making an online payment. 

The streamlined approach extends to their telematics-based motor insurance tariff, BetterDrive, which is tailored for young drivers. CosmosDirekt’s commitment to efficient customer service ensures quick and competent responses around the clock, making car insurance in Germany more accessible and manageable.

What People Say About CosmosDirekt?

According to a blog post on tuningblog.eu, CosmosDirekt is recognized for the significance of comprehensive car insurance in Germany. Notably, they have achieved the remarkable feat of being Germany’s most popular motor vehicle insurer for seven consecutive years.

This enduring popularity underscores their reputation and trustworthiness in the German auto insurance market, highlighting their commitment to providing reliable and competitive auto insurance solutions.

My Take on CosmosDirekt German Car Insurance

CosmosDirekt stands out as a company that prioritizes tailored and competent car insurance solutions, which is a significant advantage for clients seeking personalized coverage. Their innovative BetterDrive tariff, designed for young drivers, offers a unique opportunity to reduce premiums by promoting safe driving practices. 

However, the lack of detailed information about their car insurance policies poses a challenge for prospective clients. While they have an established customer base, they face stiff competition from other German insurance companies. 

Overall, CosmosDirekt appears to be a credible car insurance provider with a niche focus, especially for young drivers seeking competitive auto insurance options. 

Interested in what CosmosDirekt can offer? Click here to sign up online.

DA Direkt Auto Insurance in Germany

DA Direkt is a reputable German insurance company that offers a comprehensive array of insurance products, including car insurance. Their car insurance and portfolio covers liability, partial, and comprehensive insurance, providing clients with a range of choices to suit their specific needs.

DA Direkt has gained recognition for its award-winning insurance services and its commitment to delivering well-rounded protection while maintaining cost-effectiveness, with potential savings of up to 57%. In addition, they offer the innovative BetterDrive tariff, designed for young drivers up to 28 years of age, further diversifying their insurance offerings in the German market.

Highlights DA Direkt Car insurance in Germany

  • Diverse Coverage Options: DA Direkt’s car insurance portfolio encompasses liability, partial, and comprehensive insurance, giving clients flexibility and choice to tailor their coverage according to their unique requirements.
  • Cost-Efficient Solutions: The company stands out for delivering comprehensive insurance services while keeping prices competitive, potentially offering savings of up to 57%. This emphasis on affordability benefits clients seeking to manage their insurance costs.
  • Youth-Focused Telematics: DA Direkt’s BetterDrive tariff, designed for young drivers, utilizes innovative telematics technology via the MyDrive smartphone app. It records various driving parameters and calculates an individual risk profiling score, potentially benefiting younger policyholders with lower insurance costs.
  • Effortless Application: The online application process for the BetterDrive tariff is quick and straightforward, involving the measurement of five key risk assessments and can be completed within minutes on a smartphone. This user-friendly approach appeals to tech-savvy young drivers.
  • Significant Customer Base: Despite a lack of Statista reviews, DA Direkt boasts a significant customer base in Germany, indicating their standing in the insurance market.
  • The availability of liability, partial, and comprehensive insurance allows clients to choose car insurance that aligns with their specific needs and preferences.
  • DA Direkt’s focus on competitive pricing offers potential savings of up to 57%, which is advantageous for individuals looking for cheaper car insurance.
  • The BetterDrive tariff leverages telematics technology to support young drivers, helping them earn no-claim bonuses and potentially reducing their insurance costs.
  • The absence of Statista reviews makes it challenging to access third-party evaluations of their car insurance policies.
  • DA Direkt’s youth-focused BetterDrive tariff may not cater to a broader audience, potentially leaving other demographic segments underserved.
  • Specific exclusions or limitations in the car insurance policies are not detailed, potentially requiring clients to inquire further to understand the coverage fully.

Is It Easy to Get Car Insurance from DA Direkt?

Obtaining car insurance from DA Direkt in Germany appears to be a straightforward and hassle-free process. 

As a direct insurer, they employ efficient, cost-effective methods for calculating risk and handling claims, ensuring affordability without compromising on the quality of insurance coverage.

DA Direkt has gained recognition as one of the market’s most budget-friendly car insurance providers, offering comprehensive and award-winning motor vehicle insurance.

Their commitment to maintaining low prices, with potential savings of up to 57 percent compared to competitors, further underscores their accessibility and attractiveness. 

This makes DA Direkt a compelling choice for those seeking cost-effective and comprehensive car insurance in Germany. 

Reviews for DA Direkt as Third Party Liability Insurance

DA Direkt’s car insurance – Germany is highly regarded for its affordability and quality. According to tuningblog.eu, it has consistently been named the best car insurance in the country, winning the title six times in a row, according to Stiftung Warentest Finanztest 12/2020. 

The recognition is a testament to their “far better than average” service across all tariffs. DA Direkt’s comprehensive insurance coverage ensures all-round protection while maintaining competitive prices. Customers can trust their driving record is safeguarded and their vehicles insured according to the minimum legal requirement. 

With DA Direkt as their insurance provider, policyholders can rest assured that their claims will be handled efficiently, making them a top choice for auto insurance in Germany.

My Take on DA Direkt Car Insurance in Germany

DA Direkt’s diverse range of car insurance offerings is commendable, allowing clients to select insurance coverage that aligns with their distinct requirements. 

Their cost-efficient approach, potentially providing savings of up to 57%, is an attractive feature, especially for those seeking more affordable car insurance. The BetterDrive tariff caters to young drivers, fostering responsible driving habits and offering the possibility of reduced insurance costs through no-claim bonuses. 

However, the lack of Statista reviews and limited information about policy exclusions make it essential for potential clients to carefully assess the details of their chosen car insurance policy. DA Direkt appears to be a valuable insurance company in the German market, particularly for those looking for cost-effective car insurance solutions.

Car Insurance Cost in Germany

20 and 50 euro on top of calculator

Car insurance in Germany is a legal requirement for anyone operating a motor vehicle in the country. It comes in various forms, including liability insurance, partial coverage, and comprehensive coverage.

The cost of car insurance in Germany can vary significantly depending on several factors, making it essential for drivers to shop around and compare offers from different insurance providers.

According to the German Insurance Federation (GDV), the average annual car insurance premium in 2020 in Germany is estimated to be around 258 euros for liability insurance.

If you opt for the fully comprehensive add-on, you can expect to pay an additional 329 euros, while the partial cover add-on costs approximately 85 euros. However, these figures are just rough estimates and don’t provide a complete picture of the cost landscape.

When looking at the broader market, Germans typically pay around 250 euros per year for basic car insurance and 565 euros for full comprehensive coverage. Prices can range from as low as 100 euros to as high as 1,000 euros, depending on various factors.

The average cost of car insurance in Germany hovers around 300 euros per year for liability insurance, 500 euros for partial coverage, and 900 euros for comprehensive coverage.

Also read: Cost of Car Insurance in Germany [2023 Guide]

Is The Price Always The Same?

Red car crashing into yellow car

The prices can fluctuate significantly based on several elements, including the type of car you drive, its value, your driving experience, and other factors. For instance, if you own a high-end, expensive car, your insurance premium is likely to be higher compared to someone driving a more modest vehicle.

To find the best car insurance in Germany that suits your needs, you can turn to price comparison websites such as AXA, Check24, Tarifcheck, or Verivox. These platforms allow you to input your personal details and preferences to compare different offers from various insurers. 

Additionally, you can read reviews from other customers and receive quotes from multiple insurance providers. Doing so allows you to make an informed decision when selecting an insurance policy for your vehicle.

Factors That Determine Your Germany Car Insurance Cost

We can only try to estimate insurance costs, as the price depends on various risk factors, including the driver’s age, experience, location, and the car’s value and engine size. Students get cheaper liability insurance coverage. 

If you have only just learned to drive, for instance, your insurance is likely to be more expensive. It might be worth paying a higher excess in exchange for lower monthly premiums. 

Read the detailed post about prices for car insurance in Germany.

Relevant Factors in Determining Car Insurance Costs in Germany

What does it cost? text written in the notebook.

Compensation class

One significant determinant is the compensation class, which directly impacts your car insurance policy and, in particular, your car liability insurance. The compensation class is assigned based on your driving history, and it plays a crucial role in determining your insurance premium. 

Insurance companies use this classification to assess the risk associated with insuring you. A lower compensation class, indicative of a clean driving record, is likely to result in a more affordable car insurance contract, including liability insurance. Conversely, a higher compensation class due to accidents or violations may lead to higher insurance costs. 

Type of the car

Each type of vehicle registered in Germany is assigned a type class by the insurance companies, depending on the annual damage and accident balance.

The rule is the less damage in the past, the lower the type class, the lower the compensation. The higher the type of class, the higher the insurance contribution.

There are 16 classes in third-party coverage/Haftpflicht, 24 in Teilkasko, and 25 in Vollkasko.

To calculate the type of classes, the insurance company considers car damage and the resulting repair costs in the last 3 years. The type of class identification from the insurance companies can be applied immediately for new contracts and existing clients.

Factors for determining the type class of your car:

  • How many traffic accidents
  • How many vehicle fires
  • How many car thefts
  • How much glass damages
  • How many interior parts thefts
  • Car model
  • Engine power
  • Performance


The insurance company will determine your regional class. It stands for the risk of damage in a particular region. For example, southern Germany is a high regional class because there are potentially more accidents on snowy roads in winter than in other parts of the country. 

Therefore, insurance in this region will be more expensive. The same applies to large cities compared to small villages. If you are non-German from an EU Country, you can use a foreign driver’s license to get cheaper insurance coverage from your home country.

A foreign national living in Germany and may want to get cheaper car insurance from your home country (you have to be a member of an EU country). This could be a cheaper insurance option, especially if you have a good driving record and have existing car insurance or it’s a rental car. 


In the case of Teilkasko and Vollkasko, the insurance holder can usually determine the amount of his deductible in case of damage upon the conclusion of the contract. The lower the deductible, the more expensive the insurance premium.

Yearly distance/Mileage

Logically, the more kilometers you are traveling per year, the greater the risk of an accident. Frequent drivers should expect higher insurance rates. Also, be honest about your travel distance. Otherwise, contract penalties are threatened.

Car user’s metrics

How many drivers use the car? And how experienced is the driver? The rule of thumb here is the younger, the more expensive. Also, if your entire family plans to drive this car, insurance’s annual rate will be higher if there is just one driver.

Especially for young, inexperienced drivers, insurers assume a higher accident risk and require higher contributions.

Lodging of your car

The car location also impacts the risk of damage and, thus, the cost of insurance. If the car’s lodging is outside and accessible to everyone, then a driver must pay more if the vehicle is in the garage.

So, how much does car insurance cost in the end? As you can see, it depends on many factors, especially on which insurance you take. In general, the costs can range from 100 EUR to over 1,000 EUR per year.

According to the statistics, third-party coverage will cost you 250 EUR per year on average, partial coverage – 800 EUR, and comprehensive coverage – 1,100 EUR.

Use price estimation from AXA to determine how much you pay for car insurance in Germany.

How to Choose The Right Car Insurance in Germany?

Selective focus of magnifying glass,glasses and Insurance Policy letter on a white wooden background.

Selecting the right car insurance in Germany is a crucial decision that can save you money and provide you with the protection you need. I’m here to guide you through the process step by step, and ensure you make an informed choice.

1. Evaluate Your Needs

The first step is to assess your requirements. Consider the type of coverage you need, whether it’s liability insurance, third-party coverage, or comprehensive coverage. This will largely depend on your individual circumstances, including the value of your car, your driving habits, and any legal requirements. Liability insurance is mandatory in Germany, so make sure it’s part of your policy.

2. Research Car Insurance Companies

Take the time to research and compare car insurance companies. Look for reputable insurers that have a strong presence in Germany and a history of providing good customer service. Some well-known options include Allianz, HUK-Coburg, and CosmosDirekt, but there are many others. Consider their financial stability, claims history, and customer reviews.

3. Check Your Existing Car Insurance

If you already have car insurance in Germany, review your current policy. Understand what it covers, any limitations, and the cost. This will serve as a baseline to compare new quotes and ensure you don’t end up with less coverage or a more expensive plan.

4. Assess Your Budget

Determine how much you can afford to spend on car insurance. Keep in mind that while it’s tempting to opt for cheaper insurance, it’s essential to strike a balance between affordability and sufficient coverage. Evaluate the cost of premiums and potential deductibles.

5. Compare Quotes

Utilize online price comparison websites like Check24, Tarifcheck, or Verivox to gather quotes from various insurance providers. Input accurate information about your vehicle and your personal details to receive accurate estimates. Remember, small details can have a big impact on your premium, so be thorough.

6. Review Insurance Details

Pay close attention to the insurance details offered by different providers. Look at the coverage limits, deductibles, and any additional benefits or services they offer. Consider factors like roadside assistance, legal protection, or coverage for driving in other EU countries if these are important to you.

7. Consider Bundling

Many insurance companies offer discounts for bundling multiple insurance policies, such as car and home insurance. If you need other types of insurance, this could be a way to save money.

8. Read the Fine Print

Carefully read the terms and conditions of the insurance policies you’re considering. Be aware of any exclusions, conditions, or limitations that may affect your coverage.

9. Seek Recommendations

Ask for recommendations from friends, family, or colleagues who have experience with specific car insurance providers. Personal experiences can provide valuable insights.

10. Contact Insurance Companies

Once you’ve narrowed down your options, reach out to the insurance companies directly. Discuss your needs and any questions you have with their representatives. This can help you get a feel for their customer service and responsiveness.

11. Review Claims Process

Understand the insurance claim process of the companies you’re considering. A smooth and efficient claims process is crucial in times of need.

12. Make Your Decision

After thorough research and consideration, make an informed decision. Select the car insurance policy that best meets your needs, offers reliable coverage, and is within your budget.

Related article: How To Change A Car Insurance in Germany?

Types of Car Insurance in Germany


Choosing the right car insurance in Germany is a decision that should not be rushed. Take the time to explore your options, ask questions, and select a policy that provides peace of mind while driving your own car. By following these steps, you can ensure that your insurance company covers your needs and offers the protection you require.

Third-Party Liability Insurance – KFZ-Haftpflichtversicherung

Car liability insurance, known as “KFZ-Haftpflichtversicherung” in Germany, is a mandatory type of coverage that every vehicle owner must have. It covers the costs associated with damage or injuries to third parties in the event of an accident. This insurance is required by law and is essential for vehicle registration.

Partial Coverage – Teilkasko

Partial coverage, or “Teilkasko,” is a type of car insurance that provides protection for your own car against specific risks, such as theft, vandalism, or damage from natural disasters. While it’s not mandatory, it can offer peace of mind and added security for your vehicle.

Comprehensive Car Insurance Coverage – Vollkasko

Vollkasko, or comprehensive car insurance coverage, is the most extensive type of car insurance in Germany. It not only covers third-party liability and partial coverage but also offers protection for your own car, even in cases of accidents where you are at fault. While not obligatory, it is a popular choice for those who want comprehensive protection for their vehicles.

Note: In Germany, the type of car insurance depends on your individual needs and preferences, but car liability insurance is mandatory. You can find car insurance by contacting insurance providers, comparing quotes, and assessing your requirements. Be sure to comply with legal requirements and have your car insured before registering it at the vehicle registration office in your home country. Car insurances in Germany aims to provide peace of mind and financial security in the event of an accident or insurance claim.

Related article: How Much Does Liability Insurance Cost in Germany: Overview

Final Thoughts About The Cheapest Car Insurance – Germany

In conclusion, finding the cheapest car insurance in Germany is essential for both legal compliance and financial security. Understanding the different types of insurance available, such as liability, partial coverage, and comprehensive coverage, is crucial in making the right choice. 

Factors like your vehicle, driving history, and location influence insurance costs. It’s important to compare quotes from reputable companies like Allianz, CosmosDirekt, and DA Direkt to find the best deal. Click the link in the article to delve deeper into this topic and make an informed decision for your car insurance needs in Germany.

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