Everyone who is on the road with his own car, motorcycle or scooter, needs a motor vehicle liability insurance.

Germany requires liability insurance on every vehicle operated on its roads by law. Before you can register a car in Germany, you must have at least a “Haftpflichtversicherung” (liability insurance) which means proof of coverage for all damages or injuries to another person, car or object.

Third party liability compensates the accident victims including the passengers up to an agreed or minimum insurance sum. In other words, the liability insurance covers personal injury and damage to property caused by third party motorist. 

Among other things, it covers for:

Damage to the third-party vehicle, e. g:

  • Towing costs
  • Expert costs
  • Cost of repairs 
  • Downtime  
  • Car rental costs 
  • Depreciation 
  • Replacement value in case of total loss 
  • Registration and deregistration costs
  • Lawyers' fees 

Other material damage, e. g:

  • Damage to buildings
  • Transport facilities 

Personal injury, e. g:

  • Treatment costs
  • Loss of earnings 
  • Compensation for pain and suffering
  • Annuity 
  • Funeral expenses
  • Survivor benefit

The statutory minimum cover for motor vehicle liability is up to 2.5 million euros for personal injury and up to 500,000 euros for property damage. There are also policies with flat-rate or unlimited cover.

Motor vehicle liability insurance does not cover your own damage, if the accident is your fault. In order to insure yourself in this case, fully comprehensive insurance is necessary.

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