Your first car in Germany: registration, confirmation, and the no-claims problem

In Germany, you cannot register a car without insurance already in place. For newcomers, the real challenge is the price: without a German driving history, the first quote can be a shock. There are ways around it.

What car insurance in Germany actually is

Car insurance comes in three layers. Third-party liability (Kfz-Haftpflicht) is required by law and pays for damage you cause to other people, cars and property. Partial cover (Teilkasko) adds protection for your own car against theft, fire, glass breakage, storm, hail and collisions with wild animals. Comprehensive cover (Vollkasko) also pays for damage to your own car when you caused the accident, and for vandalism.

As a rough rule: a new or financed car usually needs comprehensive cover, a car a few years old often suits partial cover, and an older car may only need liability. If you are still choosing the car itself, what Germans consider when buying a car is a useful starting point.

Why it works differently in Germany

Before you can register a car at the vehicle registration office (Zulassungsstelle), your insurer issues an electronic insurance confirmation — the seven-character eVB number. Without it, there are no number plates and no driving.

The price is then based largely on your no-claims class (Schadenfreiheitsklasse, SF class). Each accident-free year moves you up a class and lowers your premium. Drivers with many years in class SF 20 or higher pay a fraction of what a newcomer pays for the same car. Premiums also depend on the car model (Typklasse), your region (Regionalklasse), annual mileage and who else drives it.

What it costs

This varies more than any other insurance. For a newcomer without recognised history, liability alone for an ordinary compact car can cost several hundred to well over a thousand euros a year, and comprehensive cover can be two to three times that. With good history recognised, the same car can cost less than half. Vehicle tax is separate and collected by customs via direct debit.

What it does not cover

Liability insurance never pays for your own car. No policy covers wear and tear, mechanical breakdown or poor maintenance. Insurers can reduce payouts or recover money from you after gross negligence, driving under the influence (recovery of up to €5,000 is possible) or when an unlisted driver was at the wheel. Belongings left in the car are generally not covered by car insurance.

What expats should watch out for

• Bring proof of your driving history. Some insurers will credit accident-free years from abroad if you provide a written confirmation from your previous insurer, ideally in English or German. It is not guaranteed, but it can change the price dramatically.
• Special classifications. If no history can be credited, ask about special classifications, for example if you have held a licence for several years, or if a partner or parent in Germany already insures a car.
• Driving licence. Most non-EU licences are only valid for six months after you register your residence. Exchanging it can take time, so start early.
• List every driver. Name everyone who will drive the car. Leaving someone out to save money can backfire after an accident.
• Switching date. Most policies run with the calendar year, and the usual deadline to cancel for a cheaper tariff is 30 November.

Get a quote for car insurance

Have a confirmation from your previous insurer? Upload it — it can lower your price.