Car Insurance in Germany 2026: Complete Guide & Comparison

Only third-party liability insurance (Kfz-Haftpflicht) is mandatory. Under the Compulsory Insurance Act (PflVG), every registered vehicle must have it. Without it you cannot register the car and you may not use it on public roads. Liability covers damage you cause to others, not damage to your own car. Partial coverage (Teilkasko) and full coverage (Vollkasko) are optional. (Source: PflVG, BaFin)

Partial coverage (Teilkasko) protects your car against external events you did not cause: theft, fire, glass breakage, collisions with wildlife, storm, hail and flooding. Full coverage (Vollkasko) includes everything in Teilkasko and additionally pays for self-inflicted accident damage and vandalism. Vollkasko usually makes sense for new or financed cars, while Teilkasko or liability often suffices for older vehicles. (Source: GDV, Verbraucherzentrale)

The type class (Typklasse) reflects the claims record of a specific vehicle model. Models that are frequently involved in accidents or cause high repair costs receive a higher type class and therefore higher premiums. The GDV recalculates type classes every year. Before buying a car, it is worth checking the GDV type class register. (Source: GDV)

The standard deadline is 30 November for a switch effective 1 January, because most contracts run until year-end. What counts is arrival at the insurer, not the postmark: the cancellation must reach them by 30 November. If the insurer raises your premium, you have a special right of cancellation under Section 40 VVG and can terminate within one month of receiving the notification, even mid-term. (Source: Section 40 VVG, Verbraucherzentrale)

Telematics tariffs record your driving behaviour through an app or a small box in the car. Braking, acceleration, cornering and driving times are assessed. Drivers who drive carefully can save a noticeable amount depending on the provider. They can be especially worthwhile for young drivers with high entry premiums. If you have data-privacy concerns, read the terms carefully. (Source: Finanztip)

The no-claims class (Schadenfreiheitsklasse, SF) rewards accident-free driving. With each claim-free year you move up a class and your premium rate falls. A self-inflicted claim leads to a downgrade by several classes. Under certain conditions the SF class can be transferred to relatives, for example from parents to children. (Source: GDV, Verbraucherzentrale)

For vehicles with a low residual value, full coverage is often no longer economical. A common rule of thumb: if the annual Vollkasko premium exceeds roughly 10 percent of the car value, Teilkasko or liability only is usually the better choice. For a very low current value, liability often suffices. Weigh likely repair costs against the residual value. (Source: Verbraucherzentrale, Finanztip)

There is no flat answer because the premium depends on many factors: the vehicle model (type class), where you live (regional class), your no-claims class, annual mileage, the circle of drivers and the chosen coverage. Liability is much cheaper than partial coverage, and full coverage is the most expensive. Only an individual comparison for your vehicle gives reliable figures. (Source: GDV, Finanztip)

For 2026 the GDV recalculated the type classes as it does every year, so many drivers see their classification shift. Repair costs continue to rise, and the range of telematics and EV tariffs keeps growing. Checking whether your new classification changes your premium lets you react during your annual comparison. (Source: GDV)