Third-party liabilty insurance (Haftpflicht-Versicherung) is a basic legal requirement. This means that no vehicle in Germany can be registered without it.
The owner of a vehicle is liable for all damage caused by his vehicle to others. He is legally obliged to cover this liability with insurance. The compulsory vehicle liability insurance protects the vehicle owner against claims for damages by third parties arising from a traffic accident caused by him. This may include compensation in the event of death, hospitalisation or disability.
Partially comprehensive insurance (Teilkasko-Versicherung) or fully comprehensive insurance (Vollkasko-Versicherung) are additional layers of coverage you can choose to have. These types of insurance can cover you for damage caused e.g. by theft, fire and thunderstorms, or damage to your own vehicle when you are at fault.