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
- Car rental costs
- Replacement value in the event 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
- 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.
Partial coverage insurance
While liability insurance is required by law, partial insurance can be taken out on a voluntary basis.
Comprehensive insurance pays for damage to your own car that was not caused by other road users but by external influences, such as:
- Broken glass
- Vehicle theft / attempted break-in
- Theft / damage to accessories
- Hail / storm
- Fire and short circuit damage
The cost of a comprehensive insurance depends on many factors. You cannot directly influence some of them - such as your regional class or the type class of the vehicle. Higher regional and type classes lead to a higher risk of damage and thus to higher partial insurance premiums.
You can specify other details at the end, such as if you agree on a deductible or a workshop loyalty.
The higher the deductible, the lower the annual premium for partial coverage.
If the regional class is particularly high, you can try to reduce the annual premium with a higher deductible.
In the calculation of the partial coverage premium, unlike in the case of comprehensive coverage or motor vehicle liability, the no-claims class (SF) is irrelevant.
Fully comprehensive insurance
In contrast to liability insurance, fully comprehensive car insurance is not a compulsory statutory insurance.
There are different deductibles for fully comprehensive and partial comprehensive insurance, which vary depending on the individual component and the policy. The policyholder's no-claims discount in the fully comprehensive component is B. not affected by damage that is processed within the comprehensive insurance.
Fully comprehensive insurance is particularly recommended for owners of the following vehicle types:
- New cars
- Young used cars
- Leasing vehicles (usually required)
Fully comprehensive insurance is the most comprehensive insurance cover for your vehicle, as it covers damage to your own car that you caused yourself or that was caused by intentional damage.
- Damage after vandalism
- Gross negligence
This car insurance relates to the vehicle and the parts listed as co-insured. However, not all parts installed in the car are considered insured.
The following rule of thumb: the accessories of a vehicle are also insured if they are
- is permanently installed or kept under lock and key
- only serves the use of the vehicle
- is not a luxury in terms of traffic
- is permitted under road traffic law
With a fully comprehensive insurance, you are fundamentally the most extensively covered, because the insurance cover also includes all the services of the partial comprehensive insurance.