Car Insurance for Expats in Germany: What You Need to Know Before Driving

Moving to Germany as an expat is exciting. You get to enjoy well-paved autobahns, efficient public transport, and a high standard of living. But if you plan to drive here, there’s one thing you cannot skip, and that’s car insurance.

As a licensed car insurance agent in Germany with over 10 years of experience and 20 years of driving under my belt, I’ve seen many expats struggle with getting the right coverage. I’ve also lived in the U.S., so I understand the difference in systems. 

In this article, I’ll break down everything you need to know about car insurance for expats in Germany. From rules, challenges, and tips to personal stories and expert advice, I will teach you everything expats need to know about the car insurance market in Germany.

Is Car Insurance Mandatory in Germany?

Yes, car insurance is legally required in Germany. Without at least third-party liability insurance (Haftpflichtversicherung), you cannot register or legally drive a vehicle here.

Germany has three types of car insurance:

1. Haftpflicht (Third-party): Mandatory; covers damage you cause to others.
2. Teilkasko (Partial comprehensive): Optional; covers theft, fire, and natural damage.
3. Vollkasko (Full comprehensive): Optional; includes Teilkasko plus coverage for your own car damage, even if it’s your fault.

Car Insurance Costs for Expats in Germany

The cost of car insurance depends on several factors:

• Age of the driver
• Driving experience
• Type and age of the car
• Where you live
• No-claims history (Schadenfreiheitsklasse or SF class)

For expats, a lack of an SF class often results in higher premiums. Here’s a rough comparison of annual costs:

For example, insuring a 2019 BMW 3 Series in Berlin with no prior SF class could cost around €1,500 per year for comprehensive insurance.

What If You Have a Foreign Driving License?

If you’re moving to Germany, your foreign license will usually be valid for up to six months. After that, you may need to convert it, depending on your country of origin.

EU/EEA Licenses:

• Valid indefinitely in Germany.
• No need to exchange unless you want to.

Non-EU Licenses (e.g., USA, Canada, Australia):

• Valid for 6 months after registration of residence.
• It must be exchanged for a German license if you stay longer.

Some countries have reciprocal agreements, meaning you won’t have to take a driving test. But others, like India or China, may require written and practical exams.

Important tip: Insurance companies often prefer a German license. If you have a foreign license, they might treat you as a new or inexperienced driver, which increases your premium.

Can You Let Someone Else Drive Your Car in Germany?

Yes, but there are rules.

In Germany, insurance follows the car, not the driver. However, your insurance policy will list who is allowed to drive. If an unlisted person drives your car and causes an accident, you might still be covered, but the insurer can charge a penalty fee or raise your premium.

If you want to let a friend or family member drive your car:

• Make sure they’re included in your policy.
• If not, check with your insurer if occasional driving is allowed.

For example, when my cousin visited from the UK, I had to temporarily add him to my policy to stay on the safe side. It wasn’t an issue at all.

Common Challenges Expats Face With Car Insurance in Germany

Many expats are surprised by how bureaucratic and rigid the system can be. Here are common challenges:

1. No No-Claims Bonus (SF-Klasse):

German insurers reward years of accident-free driving. Unfortunately, many don’t accept proof of no claims from foreign insurers. This means expats often start at SF 0, the most expensive tier.

2. Language Barriers:

Most insurance documents and websites are in German only. Even customer service may be limited in English. This can lead to misunderstandings and costly mistakes.

3. Complex Registration Process:

You cannot get plates or register your car without eVB (electronic insurance certificate) from your insurer. This step often confuses newcomers.

4. Vehicle History Checks:

Expats buying used cars may not understand how to check for prior accidents or emissions standards, which can impact insurance premiums.

From my experience, one of the best ways to ease the process is to work with an expat-friendly insurance broker or companies that offer English support like Feather, Getsafe, or Lemonade.

How Car Insurance in Germany Differs From the U.S.

Having lived in the U.S. before moving back to Germany, I can say there are some major differences in how car insurance works:

In Germany, the car’s risk is more heavily weighted. Insurers consider car model, accident rates, and even postal codes. In the U.S., personal driving records and credit scores have greater influence.

How Expats Can Cancel Their Car Insurance in Germany

Cancelling car insurance in Germany isn’t as simple as making a phone call. You’ll need to provide written notice, usually at least one month before December 31st (the standard renewal date). Meaning, you have to do that on or before November 30th or be ready to get an invoice for the next year.

However, you can cancel immediately if:

• You sell your car
• You switch insurers after an accident
• The insurer raises your premium

Tip: Always wait for confirmation before assuming the contract is terminated.

Registering a Car in Germany: My Personal Story

When I first registered a car here, I needed:

1. Proof of identity (passport)
2. Proof of address (Meldebescheinigung)
3. TÜV certificate (vehicle inspection)
4. Insurance confirmation (eVB number)
5. Bank account details for vehicle tax

It took a few hours at the KFZ-Zulassungsstelle (vehicle registration office), but once I had my plates, I felt truly integrated into the system.

If you’re new in town, I recommend using a registration service or getting help from a German-speaking friend. Some cities also offer online booking to avoid long queues. You can reach out to me for recommendations, [email protected].

Tips to Get Cheaper Insurance as an Expat

1. Use comparison websites like Check24, Verivox, or Tarifcheck.
2. Ask if your foreign no-claims bonus can be recognized.
3. Choose an annual payment instead of a monthly one. Most insurance companies in Germany often give a discount for this.
4. Raise your deductible (Selbstbeteiligung) to lower your premium.
5. Park in a garage. It’s seen as a lower risk.

Final Thoughts: Driving in Germany Starts With Good Insurance

Driving in Germany offers freedom, speed, and convenience. But as an expat, you need to navigate an insurance system that’s often unfamiliar and paperwork-heavy.

From my experience helping hundreds of foreigners get insured, here’s my advice: Don’t rush. Take time to compare providers, ask questions, and understand your policy. The cheapest option is not always the best, especially when dealing with unfamiliar rules and responsibilities.

Whether you’re using a U.S. license temporarily or you’ve already registered your car here, your insurance is the backbone of legal and safe driving in Germany.

So before you hit the Autobahn, make sure your car and your wallet are covered.

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