Save On Car Insurance Cost In Germany

Table of Contents

What is car insurance in Germany?

Every car owner in Germany is legally required to have car insurance. Car insurance covers the cost of damages caused during an accident.

There are three types of car insurance in Germany

• Third-party liability insurance
• Partially comprehensive car insurance
• Fully comprehensive car insurance

You should have at least third-party liability car insurance in Germany.

How much does a good car insurance cost in Germany?

Car insurance in Germany costs between 100 € and 1000 € per annum. The wide range in car insurance costs is due to the fact that the cost depends on several factors like car model, city, SF class, etc.

You can compare car insurance plans on comparison portals Verivox* and Check24*.

How can you save on car insurance in Germany?

How much your car insurance costs depends on how high the car insurance company assesses the risk that you’ll file a claim. To do so, the car insurance company creates a risk profile based on your information.

Thus, you can influence some of these points to a certain extent. But, of course, without giving false information.

In the event of intentional misrepresentation, you may be subject to penalties. Here are the tips to save on car insurance costs.

#1 Opt for a “Deductible” to reduce the premium by 28%.

An auto insurance deductible (selbsbeteiligung in German) is the amount you pay “out of pocket” on a claim. Your insurance then covers the rest.

If you opt for comprehensive car insurance, regardless of whether it is partial or full, you can take a deductible (selbstbeteiligung).

The higher the deductible, the cheaper the car insurance premiums.

You can save up to 28 percent with a deductible of just 300 euros. Thus, we recommend that you get a car insurance contract with a deductible of around 300 euros to reduce the insurance premium.

#2 Switch to an annual payment plan to save up to 10%

You can save money by paying car insurance premiums annually instead of monthly. Here is how much you can save based on your payment plan.

• You save 4% if you switch from six months to an annual payment plan.
• You save 8% if you switch from quarterly payments to annual.
• Finally, you save 10% if you switch from monthly payments to annual.

Moreover, some insurance companies do not offer tariffs with monthly payments at all.

#3 Limit the number of drivers

The car insurance cost increases with the number of drivers you insure. But the good news is German insurance companies do not charge extra to cover your spouse as a driver.

So, keep the drivers to a minimum and don’t add friends or relatives who will rarely drive your car.

#4 Estimate annual mileage defensively

Mileage is the number of kilometers you’ll drive in a year. We recommend you calculate it defensively because the more kilometers you state, the more expensive your car insurance premium will be.

Moreover, you can always add extra kilometers later. Here is a study from Finanztip showing the increase in vehicle insurance cost based on the number of kilometers.

• 5,000 kilometers cost an average of 8 percent more than 2,000 kilometers a year
• 10,000 kilometers cost 15 percent more than 5,000 kilometers
• 15,000 kilometers cost 9 percent more than 10,000 kilometers
• 20,000 kilometers cost 15 percent more than 15,000 kilometers
• 25,000 kilometers cost 15 percent more than 20,000 kilometers

#5 Let go of the freedom of picking a car workshop to reduce the vehicle insurance premium by 11%

You can save up to 11% if you uncheck the option of picking an auto workshop of your choice. In this case, you must have your car repaired in a workshop prescribed by the car insurer in the event of damage.

But check the nearest partner workshop of your car insurance company before you opt for this option. Sometimes, savings from the car insurance premium are not worth traveling too far to repair your car.

Note for new vehicle owners: You may lose the manufacturer’s guarantee if the workshop does not use original spare parts for the repair. Thus, you should have the option of picking the workshop for new cars.

Moreover, binding to a workshop is usually not an option if you lease or finance your vehicle. Leasing or financing agreements stipulate that you can only do the repairs in the manufacturer-authorized workshops.

#6 Insurance for seasonal plates is cheaper

Vehicles like convertibles, caravans, and motorcycles you drive during certain months have a seasonal license plate. For example, you won’t drive a motorcycle in winter.

For such vehicles, car insurance and taxes only apply for the months you can drive them. Hence making the insurance cheaper.

A special case of seasonal registration is the variable number plate. Under variable number place, you get one license plate for two vehicles. So, you pay for one insurance to cover two cars.

NOTE: You must store your vehicles with seasonal plates during the months you can’t drive. You cannot leave them in public spaces and have to buy a private parking area.

#7 Bring no claim bonus from your home country

Some insurers in Germany consider your driving record from your home country. As a result, you don’t start from the lowest SF level and save some money.

Thus, asking your insurer to consider accident-free years from your home country is a good idea.

#8 Change your car insurance every year

You should check your vehicle insurance every year, as your driving experience increases with time, which can help you get cheaper car insurance.

Moreover, a new car does not remain new. Thus, switching from full-comprehensive car insurance to partial car insurance to save money after a few years is advisable.

Lastly, insurance companies offer discounts to attract new customers. So, take advantage of these discounts and save on car insurance costs.

The best way to compare car insurance is on comparison portals Verivox* and Check24*.

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