Third-Party vs Comprehensive Car Insurance in Germany: Which One Should You Choose?

Car insurance is mandatory in Germany, and for good reason. As a licensed insurance agent with 10 years of experience and over 20 years behind the wheel, I’ve seen it all. From minor fender benders to major accidents, I’ve helped countless drivers choose the right insurance policy for their needs. One of the most common questions I get is: Should I go for third-party or comprehensive car insurance in Germany?

In this guide, I will break down the key differences between third-party and comprehensive car insurance. I will also discuss what each one covers, explore their limitations, and share a true story that could help you avoid a costly mistake.

What Is Third-Party Car Insurance in Germany?

Third-party insurance, known in German as Haftpflichtversicherung, is the minimum legal requirement to drive any car in Germany. You can’t register a car without it.

What It Covers:

• Damages you cause to other people’s property (like another car or a building)
• Injuries or death to other drivers, passengers, or pedestrians
• Legal costs if someone sues you

What It Doesn’t Cover:

• Damages to your own car
• Theft or vandalism
• Natural disasters (floods, storms, etc.)

This type of insurance is best suited for older cars or when you’re on a tight budget. But be aware that it only protects others, not you.

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What Is Comprehensive Car Insurance in Germany?

Comprehensive insurance, called Vollkasko, is a higher level of protection. It covers everything included in third-party insurance, plus a lot more.

What It Covers:

• All third-party coverages
• Damage to your own car caused by:
  • Accidents (even if it’s your fault)
  • Vandalism
  • Theft or attempted theft
  • Fire, explosion, and natural events (hail, floods)
  • Collisions with animals (wild boars, deer, etc.)

What It Doesn’t Cover:

• Normal wear and tear
• Driving under the influence
• Deliberate damage to your own car
• Mechanical or electrical breakdowns

It’s perfect for new, expensive, or leased cars. If you’re still paying off your car loan, your bank may even require comprehensive coverage.

Key Differences Between Third-Party and Comprehensive Car Insurance in Germany

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Average Insurance Costs in Germany

The cost of car insurance in Germany depends on several factors like car model, driver’s age, driving history, region, and more. However, here’s a rough breakdown:

• Third-party insurance: €300 to €600 per year
• Comprehensive insurance: €600 to €1,200 per year

For example, if you’re driving a 2022 Volkswagen Golf:

• Third-party: Around €450/year
• Comprehensive: Around €850/year

These are average quotes from top insurance companies in Germany, like HUK-Coburg, Allianz, and AXA as of 2025. Depending on your driving record and car type, your premium could be lower or higher.

Third-Party Car Insurance Limitations

• Doesn’t cover your vehicle at all
• Leaves you financially vulnerable if you cause an accident
• No help if your car is stolen or vandalized

Comprehensive Car Insurance Limitations

• More expensive
• Doesn’t cover wear and tear or mechanical faults
• May have deductibles (Selbstbeteiligung) of €300–€500

Still, in most cases, the benefits outweigh the limitations, especially for newer vehicles.

Why My Friend Regretted Choosing Third-Party Insurance

A close friend of mine, Carl, bought a used Audi A4 two years ago. To save money, he opted for third-party insurance. “It’s just a car to get me from point A to B,” he said.

One rainy day, he swerved to avoid a cyclist and crashed into a guardrail. The cyclist was unharmed, but his car was totaled. His insurance paid nothing for his car damage because he only had third-party coverage.

The repair bill? Over €6,000. Carl had no choice but to scrap the car and start saving for another one.

He told me, “I saved €400 a year, but lost thousands when it mattered most.” Don’t look at the price of a comprehensive car insurance policy because the cost of choosing third-party might be higher.

Which One Should You Choose? Third-party or Comprehensive Car Insurance

Here’s how to make the right decision:

Choose Third-Party Insurance if:

• Your car is over 10 years old
• You can afford to replace it out of pocket
• You drive rarely or live in a low-risk area
• You’re looking to keep costs low

Choose Comprehensive Insurance if:

• Your car is new, leased, or financed
• You park on the street in a city
• You want peace of mind in all situations
• You can’t afford to replace your car easily

For many drivers, a middle ground exists—Teilkasko (partial coverage). It offers more than third-party but less than full comprehensive. It covers theft, fire, glass damage, and weather-related issues—but not damage you cause yourself.

Final Thoughts: Don’t Just Look at Price

When choosing car insurance in Germany, don’t just focus on the premium. Think about your financial situation, driving habits, and vehicle value.

Yes, comprehensive insurance is more expensive. But in my experience, it can save you thousands of euros in the long run. As someone who has driven for 20 years and advised thousands of drivers, I can confidently say this: It’s better to be overinsured than underinsured.

Take the time to compare quotes from reliable providers like HUK24, Allianz, AXA, DEVK, and CosmosDirekt. Most of them offer online car insurance calculators to help you decide.

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Frequently Asked Questions About Car Insurance in Germany

Is car insurance mandatory in Germany?

Yes, at least third-party liability (Haftpflicht) insurance is mandatory to register and drive a car.

Can I switch from third-party to comprehensive?

Absolutely. You can upgrade your policy anytime or during the yearly renewal period.

Will my premium go up after a claim?

Most likely, yes. Especially with comprehensive policies, your damage class (Schadenfreiheitsklasse) can be downgraded after a claim.