Zum Inhalt springen
Exparanto logo in purple color with a white bridge.
  • Home
  • About us
  • Services
  • Our Expat Blog
  • Contact us
  • Home
  • About us
  • Services
  • Our Expat Blog
  • Contact us

What Germans Consider When Buying a Car

  • August 2, 2025
  • The Exparanto Blog Team

Choosing a car in Germany is rarely an impulsive decision. It’s a careful balance of lifestyle, budget, and long-term thinking. While some drivers look for status and brand prestige, most approach the purchase with a very German mix of pragmatism and planning. Here are the main factors that typically influence the choice:

  • Practicality
    German cities like Frankfurt, Munich, or Berlin are dense, with narrow parking spaces and heavy traffic. That’s why compact cars like the VW Golf or Audi A3 remain extremely popular. Families in suburban or rural areas, on the other hand, often go for larger wagons (Kombis) or SUVs that provide space for kids, pets, and weekend trips.
  • Efficiency
    With high fuel prices and strict environmental rules (low-emission zones, green stickers for city driving), efficiency matters a lot. Many Germans factor in not just fuel costs, but also taxes based on emissions. Electric and hybrid cars are gaining ground, supported by government incentives and a growing charging network.
  • Brand loyalty & resale value
    German brands – Volkswagen, BMW, Mercedes, Audi – continue to dominate the market. Their reputation for quality and engineering is strong, but another factor is resale value. Cars are often traded in after just a few years, so choosing a brand with a stable resale price is a financial decision as much as a cultural one.
  • Total cost of ownership
    Germans are detail-oriented planners. Beyond the purchase price, they calculate long-term costs: fuel, maintenance, road tax, TÜV inspections (mandatory technical checks every 2 years), and – very importantly – insurance premiums.

Car Insurance Basics in Germany

Car insurance is not optional here – it is a legal requirement. Without proof of insurance, you cannot even register your car. Here’s how the system works:

  • Haftpflicht (Liability Insurance)
    Mandatory for everyone. It covers damage you cause to other people, their vehicles, or property. No car is registered without it.
  • Teilkasko (Partial Comprehensive)
    A step up. It covers theft, glass damage, fire, natural hazards (storms, floods, hail), and animal-related accidents – quite relevant in rural areas where deer accidents are common.
  • Vollkasko (Full Comprehensive)
    The most complete cover. It includes everything from Teilkasko and adds protection for your own car, even if you caused the accident yourself. It also covers vandalism. Many drivers of new or leased cars choose Vollkasko.
  • Schadenfreiheitsklasse (No-claims bonus)
    A unique German concept. Each accident-free year lowers your premium. The longer you drive safely, the cheaper your insurance becomes. Expats should always ask whether their no-claims history from abroad can be transferred – some insurers accept it, others don’t.
  • Add-ons
    Many policies offer extras like breakdown assistance (Schutzbrief, similar to ADAC roadside cover), foreign accident protection (useful for trips across Europe), or GAP insurance that guarantees your car’s value in case of total loss.

What Expats Should Pay Attention To

  • Transfer your no-claims history
    If you’ve been driving accident-free abroad, get a written confirmation from your previous insurer. This can reduce your German premium significantly.
  • Leasing requirements
    Leasing is common in Germany, especially for company cars. But leasing companies almost always require full comprehensive (Vollkasko) coverage – something to keep in mind before signing a contract.
  • Bundling for discounts
    Many insurers offer packages: car insurance plus personal liability, household, or legal protection insurance. Bundles can be cheaper and easier to manage.
  • Accuracy matters
    German insurers are very strict about details. If you move to a new city, change your commute distance, or add another driver, you must update your policy. Incorrect information can affect coverage if you have a claim.
  • Breakdown assistance
    Especially if you plan road trips across Germany or Europe, adding a Schutzbrief (roadside assistance) is often worth the small extra cost.

Cultural Side Note: Cars and Identity in Germany

For many Germans, a car is not just a tool – it’s part of their identity. A Kombi signals family life, a BMW might hint at career success, and a small VW Polo suggests practicality in a city setting. Company cars are a common employee perk and carry social prestige.

Expats often notice that cars in Germany are well-maintained and regularly serviced. That’s partly due to strict TÜV inspections, but also to the cultural value placed on reliability and order.

Conclusion

In Germany, buying a car and choosing insurance go hand in hand. A well-chosen policy doesn’t just protect you legally – it protects your wallet, your vehicle, and your peace of mind. For Expats, understanding the basics, transferring your no-claims history, and avoiding common pitfalls can make the road ahead much smoother – and far less expensive.

And remember: in Germany, insurance is not just a piece of paper. It’s a reflection of the same thoroughness and planning that defines how Germans choose their cars in the first place.

  • Nico Glatz
  • August 2, 2025
PreviousTop 5 Insurance Mistakes Expats Make (And How to Avoid Them)
NextThe Must-Have Insurances for Expats Renting a Flat in Germany (And Why Landlords Care)

More Posts

Give Your Child a Unique Head Start – with Exparanto KidsProtect All-In-One Protection

When Life Takes a Turn: Why Expats in Germany need Life & Dread Disease Protection

Protecting Your Income in Germany: Why Expats Shouldn’t Wait

Why an Advance Directive is Vital — Even If You’re Fully Insured

  • Home
  • About us
  • Services
  • Our Expat Blog
  • Contact us
  • Home
  • About us
  • Services
  • Our Expat Blog
  • Contact us

Legal Notice

Privacy policy

© Copyright 2025 Exparanto. All rights reserved.