Cost of Car Insurance in Germany [2023 Guide]

If you want to have a car in Germany, you will need to have insurance for it. You can’t drive a vehicle without at least liability coverage. It’s the cheapest insurance type in Germany and costs about 250 EUR annually.

On average, a car owner pays 250 EUR per year for the cheapest car insurance in Germany – liability coverage (third-party insurance). Generally, car insurance price depends on many factors, such as car’s type, regional class, driver’s age and experience, deductible, and many other elements.

In Germany, you can’t use a car without insurance. Minimal liability coverage is mandatory. Therefore, the cost of this insurance will drive your monthly car expenses up. How much should you budget for your car insurance, though?

For car owners on a budget, we recommend insurance from CosmosDirekt. You can also compare current prices by using

How much does car insurance cost in Germany?

In general, Germans pay, on average, around 250 EUR per year for basic car insurance and 565 EUR for full comprehensive coverage. Prices range from 100 EUR to 1,000 EUR. With partial coverage and about 4 years of no claims class, you can expect to pay roughly 500 EUR per year.

There are three main types of car insurance in Germany. All of them vary in prices, requirements, and scope of coverage. Also, deductibles, vehicle type and model, no-claims bonus, and many other features determine the individual insurance cost.

You should compare various insurances on the Tarifcheck to get a worthwhile offer.

The least expensive car insurance is a liability, second in price is partial coverage, and the comprehensive cover has the highest price.

The coverage scope respectively increases with the price. Older cars don’t need extensive protection, while full comprehensive coverage is recommended for vehicles younger than 5 years.

Assuming you have partial coverage (Teilkasko) and a four-year no-claims class, you can roughly expect 500 EUR per year in insurance costs. Yet, even insurance cost for a typical car like VW Golf V is hard to estimate. There are simply too many factors determining the final price.

The price depends on various risk factors, including the driver’s age, experience, location, and the value and engine size of the car.

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

Another factor is, how many years you haven’t caused an accident. This can change the price of the premium significantly. After 26 years without an accident, the premium will be reduced by up to 80%. So, if previously you paid 500 EUR per year, now it’s only 100 EUR.

But with more accidents price of car insurance also goes up. For example, if you had several accidents within a short time, it can increase your policy rate up to 245%.

What companies have the best and most affordable policies to go with?

The best price for value policies can be found among these providers:

  1. AXA – one of the largest insurance providers in Europe.
  2. CosmosDirekt – a car insurance provider that stands not only on low prices but also for more value for money. In fact, many German tests confirmed the excellent price-performance ratio. You can save up to 40% in price.

Looking for the cheapest car insurance in Germany? Check out this article.

Average cost of car insurance in Germany

Statistics have shown that Germans spend an average of around 250 EUR on liability insurance, 340 EUR on partial coverage, and 565 EUR on comprehensive car insurance per year.

The annual cost of car insurance depends on many factors. These include type class, no-claims bonus, driver group, kilometers driven per year, and registration district.

As a novice driver, you will pay considerably more, as your accident risk is much higher. However, you can save by transferring the no-claims bonus, an agreed deductible, or insuring the car as a second one.

Liability vehicle insurance is required by law and pays only for damage caused to others by your vehicle. Drivers have a choice of whether they want to sign for partial or fully comprehensive insurance.

The last two policy types will cover not only third parties but also your car. Insured damages include accidents and natural hazards.

Partial cover insurance covers most common damages and it’s usually enough for an average driver with an average car. If your car is three-five years and younger, taking out a comprehensive plan makes sense. It also pays for vandalism or self-inflicted accident damage to the car.

AXA and CosmosDirekt are some of Germany’s reputable, affordable and reliable car insurance providers.

To see the current prices of various insurance providers, check out the German comparison tool –

Why is German car insurance so expensive?

Car insurance in Germany isn’t expensive when compared to international standards. In the US, drivers pay 1,674 USD per year for full comprehensive coverage, while this number is 565 EUR or 645 USD in Germany. Even minimum coverage costs an average of 565 USD annually.

In other European countries, car insurance isn’t cheap either:

  • Switzerland has the highest insurance costs in Europe: up to 117 EUR per month, for both diesel and petrol. Sweden has the lowest policies in the EU with a minimum of 39 EUR (468 EUR annually) per month for a full coverage.

In Germany, in some regions, you might pay less or more for a policy. According to the comparison tool Verivox, prices on car insurance are higher in Bavaria than in other German states.

People in Bavaria drive cars with more horsepower than the national average and tend to own more expensive vehicles (think BMW, Audi are from Bavaria).

Factors determining car insurance price in Germany

1. Compensation class

When was your last accident? The type class reflects the accident record of a particular car.

The further the date, the better rate, or maybe you never even had one, even better! However, this math doesn’t work for beginner drivers, they get the worst rank.

Depending on the compensation classes, a certain discount is granted on the insurance rate. The compensation classes range from 0 (beginners) to 35 (35 years without damage) for most insurance companies.

2. 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 many glass damages
  • How many interior parts thefts
  • Model
  • Engine power
  • Performance

3. Regional class

Each region has its own claims record. This balance reflects the driving behavior of car owners in the registration district. It stands for the risk of damage in a particular region. The regional class is determined by the insurance company and depends on your place of residence.

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, car insurance in this region will be more expensive. The same applies to large cities compared to small villages.

4. No-claims period

The no-claims bonus depends on the no-claims class – the no-claims class refers to the sum of your accident-free years of driving. The higher the no-claims class, the lower your premiums.

5. Driver’s age

Younger drivers without experience cause more accidents. Therefore, the premiums are higher here. Especially for young, inexperienced drivers, insurers assume a higher accident risk and require higher contributions.

6. Annual mileage

How many kilometers per year you drive increases the risk of damage, hence, the policy’s price.

7. Deductible

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.

8. 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 threaten.

9. Car user’s metrics

How many drivers use the car? The more drivers drive a vehicle, the higher the risk of claims, the higher the insurance cost. And how experienced is the driver? Less experience means more money to pay.

10. Lodging of your car

Car lodging also impacts the risk of damage and, thus, on the cost of insurance. If the car is parked outside and accessible to everyone, a driver must pay more if the car is in the garage. Furthermore, many insurance companies will give you a better price if there is parking space available for a vehicle.

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, expect to pay between 250 EUR and 350 EUR per year.

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

It’s impossible to give a blanket answer to the question, “How much does car insurance cost?”. All vehicles are different, discounts offered by the various insurance companies are different, and your own requirements for insurance coverage are different.

We recommend:

  • Plan your budget: even before you buy a car, consider whether you can afford to pay for its maintenance which includes car insurance. Larger cars usually cause higher insurance costs.
  • Consider coverage scope: What all should be included in the insurance? A fully comprehensive plan is usually a good choice for a new car; cheap partial coverage is sufficient for a used car that’s more than 4 years old. If you lease the car in Germany, the lessor will advise fully comprehensive insurance.
  • Compare insurance policies: Comparison portals like Verivox and will help you to find the best deal for car insurance in Germany.

If the current price of your car insurance is too high, you can change your insurance provider. We have explained how to do it in the article: How to change car insurance in Germany.

Cost of car liability insurance in Germany

A third-party coverage or KFZ-Haftpflichtversicherung is the cheapest and minimal policy type you can get for your car in Germany. The average price of third-party insurance is 258 EUR annually.

The KFZ-Haftpflichtversicherung (vehicle liability insurance) is required by law in Germany and covers the driver against third-party liability claims.

What it does cover:

  • Damages to someone else’s car  or property
  • Injuries you may cause to others
  • Injuries to your passengers during an accident  

What it doesn’t cover:

  • You
  • Your car

Which companies provide the best price for third-party coverage in Germany?

Most insurance companies offer a third-party coverage. AXA and CosmosDirekt are some of the reputable companies providing affordable liability car insurance.

For instance, CosmosDirekt stands not only at low prices but also for more value for money. In fact, many German tests confirmed the excellent price-performance ratio. You can choose between basis or comfort coverage, sign up online here.

Cost of partial car insurance in Germany

Partial and comprehensive coverage is optional in comparison to the obligatory third-party one. Therefore, you can determine if you want to add it to your car insurance or not.

In Germany, this partial insurance is called Teilkasko, while full comprehensive coverage is Vollkasko. Partial cover includes everything from basic liability car insurance, plus some additional coverage. It protects you from the financial costs of car theft and damages caused by random acts of nature.

What damages partial coverage compensates:

  • Damages caused by fire or explosion
  • Broken glass (e.g. a broken windshield)
  • Car theft
  • Damages to your car’s wiring because of a short circuit
  • *Marten (weasel) bites that damage coolant hoses and spark plug wires
  • Damages caused by storms, hail, lightning or flooding

In contrast to the third-party coverage, it protects against glass breakage, wild accidents, and elemental damage such as storms, hail, lightning, or flooding. Also against theft of the car or its parts.

However, partial coverage doesn’t compensate for the following costs:

  • Accident damages to your car

All the above-mentioned companies provide partial coverage for your car.

Cost of full coverage car insurance

Vollkasko or comprehensive full coverage car insurance costs on average twice as much as the basic liability coverage or about 565 EUR per year. This type of policy makes sense when the car’s age is less than 5 years.

Comprehensive coverage is the most expensive and, consequently, extensive form of car insurance for vehicles in Germany. It protects from damage to you and your car, which you have caused yourself (through an accident).

A full-coverage combines two previous insurance types. It covers:

  • Damage that you or your car might inflict on other people, cars or property, including medical bills
  • Costs of car theft and damages caused by acts of nature
  • Cost caused by vandalism
  • Costs for damages you might make to your car or yourself

Compare prices before buying your car insurance

Finding affordable car insurance isn’t easy, and online comparison platforms made this process simple. Just enter your details and requirements on to see the best deals.

Verivox is another great place to find affordable car insurance and much more.

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