Cheapest Car Insurance in Germany: A Guide

If you live in Germany and have a car or want to buy one, you need special insurance. The cost of the insurance can significantly increase your car’s expenses, so you might want to consider finding the cheapest or less expensive option. Nonetheless, car insurance in Germany has particular importance because you cannot use your car without it.

On average, a car owner pays 250 EUR per year for the cheapest car insurance in Germany – liability insurance (third-party coverage). All insurance companies offer this type of coverage. Allianz is one of the most popular German providers. 

Before selecting car insurance in Germany, there are a few things to consider. There are different types of car insurance, each of which ranges in price, requirements, and coverages. How much does car insurance cost in Germany? Read here.

Cheapest Car Insurance in Germany

Finding cheap car insurance can be as exhausting in Germany as in any other country. In order to save time and money, you could check price comparison websites like and first. They will give you estimated costs for the insurance of your preference.

In general, there are three main types of car insurance in Germany:

1. Third-party coverage – KFZ-Haftpflichtversicherung

It covers any damage you or your car might inflict on other people, cars, or property, including medical bills. You can get the KFZ coverage from Allianz or CosmosDirekt. They are the best and most affordable car insurance providers in Germany.

2. Partial coverage – Teilkasko

This type covers third-party damage and protects you in the case of any accidental damage, fire, and theft (but not vandalism) as well.

3. Comprehensive coverage – Vollkasko

This type of insurance summarizes the two mentioned before and adds coverage for any damages you might make to your car or yourself. 

There are many factors that are important while choosing car insurance in Germany, such as age and price of the car, your age, driving distance, etc.

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

Are you looking for the cheapest car to buy in Germany in 2022? Check out this article, we have picked the most affordable new and used vehicles on the German market.

Which Companies Provide the Cheapest Car Insurance in Germany?

The cheapest packages can be found among these providers:

  1. Allianz – the largest insurance provider in Germany with policies from 72 EUR/year.
  2. CosmosDirekt – car insurance provider with low prices and great value for money. In fact, many German tests confirmed the excellent price-performance ratio. You can save up to 40% in price.

Besides, you can find the perfect insurance for your car by using the free comparison tool

How much does car insurance cost in Germany? Read here.

Compare Prices Before Buying

Moreover, you can compare different car insurance providers and rates on the platforms like and Verivox is one of the best comparison websites in Germany, according to 251k positive reviews. You can see reviews here.

To see available car insurances in Germany, select Versicherungen and then KFZ Versicherung at the top of the page. After this, provide necessary details about you, because as we know, the price of car insurance in Germany depends on so many factors.

In the end, you will see a list of companies available in your location, as well as all information about the insurance they provide.

Types Of Car Insurance in Germany

Now it’s time to think about the specific tariff you need. Only third-party coverage, partial or total package? If you want to be on the roads with your car, you need at least basic car insurance.

This will pay for damage you cause to others in traffic, whether material or personal damage. The liability doesn’t insure damage to your own car.

However, both partial and comprehensive insurance usually costs significantly more than basic liability insurance. So consider whether you need this additional protection or not. Or if this is the thing where you can save some money.

Whether partial or full coverage is useful for you depends above all on the age and value of your car. For a new car, fully comprehensive coverage is usually the right protection. A comprehensive package may even be mandatory if you are in leasing agreements.

If you have opted for a comprehensive insurance policy, the policy owner should check every year whether the protection still fits the car because a new vehicle doesn’t remain new.

Therefore, after a few years, it usually makes sense to switch from fully comprehensive to partial comprehensive insurance – and thus, save a lot of money.

If you have your own very old vehicle, you usually will be fine with basic coverage.

The Cheapest Option – the Third-Party Coverage

Everyone in Germany needs at least third-party coverage or KFZ-Haftpflichtversicherung to be able to drive a car legally. Because what happens when you have an accident and damage other cars or people?

If you don’t have insurance, you end up paying thousands of euros out of your own pocket. That’s why having at least KFZ-Haftpflichtversicherung insurance is a Pflicht (obligation)! Allianz has one of the cheapest liability car insurance in Germany.

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

As you can already understand, this insurance is a minimum and will cover the only costs for third parties who are involved in an accident caused by you.

!Foreigners who bought their cars in other countries and brought them to Germany will need to have German car insurance even if they have foreign or European coverage.

What does it cover:

  • Claims of third parties as a result of personal, material, and financial damage through a car accident, such as healing costs, compensation for a loss of earnings, repair of vehicle costs, etc.

In some cases, insurance won’t pay for damages that arise in the event of a hit-and-run, under the influence of alcohol or drugs, or driving without a license.

Which companies provide the cheapest third-party coverage in Germany?

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

Allianz offers premiums from 72 EUR per year. Allianz is one of the world’s largest insurance companies. In Germany, it’s the second-biggest car insurance provider, with over 20 million customers across various insurance types.

You can select between 4 different coverages for your car, starting from basic liability to the most comprehensive plan. Here are some highlights of Allianz car insurance:

  • Price – from 72 EUR/year
  • Coverage – 100 million EUR
  • Claims service – 24/7
  • Flexible – optional add-ons

CosmosDirekt is 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 choose between basis or comfort coverage, sign up online.

Besides, you can see the cheapest prices among various insurance providers by using the tool

Second Less Expensive – Partial Coverage

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 type of insurance is called Kasko and is divided into partial Kasko and full Kasko (Teilkasko and Vollkasko).

Teilkasko insurance 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.

With Teilkasko (partial coverage), you will receive compensation for damages in the following situations:

  • 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

*While this sounds ridiculous, Martens caused more than 300 million euros in car damages between 2010 and 2014 in Germany. These animals sneak into cars’ engine bays and can cause a lot of problems for car owners in Germany.

It’s important to note that partial car insurance does not cover acts of vandalism, although, these weasels are such are vandals!

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

The insurance policy should also apply in the event of damage caused by driver negligence. Thus, you will be covered even when driving at a red traffic light distracted by the CD change, and causing an accident this way.

However, Kasko doesn’t cover the cost for:

  • Accident damage to your car

This difference in coverage is also the main distinction between partial coverage and comprehensive coverage. Logically, if your car is expensive, you want also to cover its costs, so you better opt for Vollkasko (comprehensive coverage).

All providers mentioned before have partial coverage for your car.

The Most Expensive – Comprehensive Coverage

Vollkasko (comprehensive coverage) is the most expensive and consequently comprehensive form of car insurance for vehicles in Germany. It also covers damage to your car, which you have caused yourself (through an accident).

However, this insurance is significantly more expensive than the previous one – Teilkasko.

You should sign for comprehensive insurance if your car is new or still relatively new (up to approx.2-3 years old) so you will receive the money if your highly valued car is damaged, and you will pay less out-of-pocket.

It combines two previous insurance types and adds the protection you would receive for your car and your medical costs. Therefore, 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
  • Vandalism and costs for damages you might make to your car or yourself

Here is the full list of coverage:

  • Glass damage
  • Vehicle theft
  • Robbery attempt
  • Theft/theft of accessories/any robbery
  • Hail/storm damage
  • Fire
  • Flood
  • Damage caused by wild nature
  • Falling rocks
  • Damage caused by weasels
  • Vandalism
  • Accident damage to your car and yourself

Additionally, comprehensive insurance compensates for damage to the vehicle due to a clash (with a hit-and-run) or self-protection, as well as damage by third parties who can’t pay compensations themselves or are not insured.

You can find comprehensive coverage in both companies, Allianz and CosmosDirekt.

The Third-Party Coverage or Partial Coverage?

In Germany, third-party coverage is called Kfz-Haftpflichtversicherung. The third-party coverage will cost you less than Teilkasko, but you need to consider several things between making a choice.

  • Third-party coverage is legally mandatory and protects against claims for damages you made to other cars
  • Partial coverage insurance is an extension of third-party coverage and protects against damage to your own car
  • Additionally, the second option covers damages from fire, theft, wild accident, hail, or other natural events

Third-party coverage is a must for every vehicle owner. Anyone caught without it must expect a prison sentence of up to one year. Since road accidents can result in high costs, third-party coverage is intended to ensure the financial compensation of the involved parties.

Signing for partial coverage is recommended if the vehicle is not yet too old and has at least a medium financial value. Other things to consider are the personal need for insurance and your own driving habits.

How much will you get reimbursed? According to German law, there is a minimum coverage for compensation if the case of an accident:

  • 7,5 million EUR for personal injury
  • 1.12 million EUR for property damage
  • 50,000 EUR for financial losses

Insured persons would then have to pay additional costs out of their own pocket. Good and reputable insurance companies usually offer a flat-rate coverage sum of 50 or 100 million EUR.

Partial coverage insurance (Teilkasko) – is voluntary insurance and protects against most damages to the insured person’s vehicle. In some cases, the insured person has to pay a deductible in the event of damage.

What to choose?

In general, car owners should consider the risks they want to be covered by car insurance in advance – otherwise, it can get expensive if something happens.

In Germany, the conduction of partial coverage usually pays off. The range of services offered by Teilkasko is comprehensive, and the relatively low premium price is often worthwhile already after one damage.

Looking for the cheapest car to buy in Germany in 2022? Check out this article; we have picked the most affordable new and used vehicles on the German market.

How Much Does Your Insurance Cost?

We can only try to estimate the costs of insurance, as the price depends on various risk factors, including the driver’s age, experience, and location, as well as 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.

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

Relevant Factors in Determining Car Insurance Costs in Germany

Compensation class

When was your last accident? 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, and they get the rank worst.

The compensation class (SF class) is an index of the number of non-compensated years of the insurance holders. Depending on the compensation classes, a certain discount is granted on the insurance rate.

For most insurance companies, the compensation classes range from 0 (beginners) to 35 (35 years without damage).

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


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.


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 threaten.

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 plan 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.

Accordingly 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 end up paying for car insurance in Germany.

To compare the best options, check insurance calculator platforms Verivox or Tarifcheck to get the cheapest rates and best coverage. Fill out your data and preferences to get comprehensive information on car insurance providers and prices in Germany.

How Can You Save Money on Your Car Insurance?

There are some ways to reduce the price you are paying monthly or yearly for your insurance.

Increase Your Deductible

Suppose you decide on comprehensive insurance, whether partial or full coverage, you will have to pay some kind of deductible. Usually, you pay yourself for minor damage to the car.

However, your annual contribution will be cheaper if you increase that amount. Of course, there are some risks involved in it, and you can also hope nothing happens to your car. Otherwise, you might end up not winning but losing in this situation.

It’s advisable to agree to a 150 EUR deductible. In the end, you can save up to 20% of annual insurance costs. However, if you invest 300 EUR, you can save 25% on average. A deductible of 300 EUR is recommended for comprehensive coverage.

Pay for Insurance Annually

If you pay your contribution annually instead of monthly, you can save significantly. So switch to an annual payment method. If you pay your insurance premium at once instead of paying twice a year, you save almost 4%.

Some insurance companies don’t offer monthly payments, including affordable providers. If you limit your search because you want to pay monthly, you have fewer options to choose from.

Don’t Allow Different People to Drive Your Car

Your marriage or life partner is usually insured as a driver without the increase in the premium. However, the larger you choose your driver circle to be, the more expensive it becomes.

Beginners will have the highest markups. The current financial study showed an average premium increase of more than 100%.

Estimate Your Annual Driving Performance

How many kilometers will you probably drive? You should always try to estimate your kilometrage before signing for insurance.

The more kilometers you estimate, the more expensive your insurance contribution will be. A study from august 2020 showed the following average values:

  • 5,000 km cost on average 8% more than 2,000 km per year
  • 10,000 km cost 13% more than 5,000 km
  • 15,000 km cost 9% more than 10,000 km
  • 20,000 km cost 12% more than 15,000 km
  • 25,000 km cost 13% more than 20,000 km

Set Up an Agreement with a Car Service

An agreement with a particular car service brings an average of almost 10% discount to the monthly premium for a comprehensive insurance policy.

In return, you will have to let your car be repaired in car service accordingly to the plan of the insurance company. Before setting up such a deal, you should check, where your provider’s next partner auto service is.

What Can Be Skipped in Insurance?

Some particular things have special importance in your insurance policy, and some aren’t that necessary and can be neglected.

The passenger’s accident insurance covers the costs if one of your passengers is injured or killed. But such accidents are covered anyway either by the car insurance of the accident causer or by your own car insurance.

Check out our top recommended and cheapest car insurance companies in Germany: Allianz and CosmosDirekt.

If you are looking to buy a car in Germany, read our article on the cheapest cars in Germany and some other car-related posts:

  1. Can a foreigner buy a car in Germany?
  2. Used car prices in Germany
  3. Getting a car loan in Germany
  4. How to buy a car in Germany for export
  5. Best websites to buy a used car in Germany
  6. Car insurance in Germany
  7. Cheapest car insurance in Germany
  8. Buying vs leasing a car in Germany
  9. How much does it cost to own a car in Germany?

This post contains affiliate links. The affiliate link means we may earn an advertising/referral fee if you make a purchase through our link, without extra cost to you. It helps to keep this blog afloat. Thanks for your support. 


Anna is an enthusiastic expatriate with experience of living in Germany, Austria and Greece. She shares her passion for living abroad on this website.

Recent Posts