German law requires that all drivers must have car insurance. Particularly for you to have a German license plate and have your vehicle registered, you should have a minimum of third-party liability insurance. In addition, you should always display your car’s insurance certificate at all times in the vehicle. Germany is a giant as far as Europe’s motor market is concerned and has one of the biggest vehicle insurance companies in the continent, with about 90 car insurance companies according to 2016 statistics. If you need your car to be repaired when in Germany you can always look at Discount24. This article helps one to understand car insurance in Germany better.
Factors affecting the cost of car insurance in Germany.
Mileage: When getting a car insurance policy, your provider will require you to specify the kilometers you tend to drive. If you are not the type, who drives long distances, ensure that you provide a reasonable amount and try not to overestimate. The more kilometers you give, the more you will be charged.
Car Model: The model of the car that you drive affects the amount that you will pay for your car insurance. Particularly if your car model costs little as far as repair costs are concerned, the premiums will be charged will also be lower.
Claims: A responsible driver with little or no claims will pay a lesser amount for their car’s insurance.
Contribution payments: If you have a choice, always go for the option of paying the cost of your car insurance regularly instead of quarterly or monthly installments. Studies show that transferring the whole amount at once tends to result in lower charges instead of paying severally in a year.
Location: Drivers who drive in huge cities tend to pay more for their car insurance than those living in smaller towns or cities.
Main types of car insurance types in Germany
Liability Insurance (Haftpflicht)
This is also referred to as third-party insurance. It is the most basic or minimum legal requirement in Germany. It offers a minimum level of coverage. Particularly, it only covers the damage you or your car can cause to other vehicles or other people and includes medical expenses. The disadvantage of liability insurance is that if you are the one who caused the accident, it doesn’t cover the damage caused to your car. This is why persons tend to go for other insurance policies that tend to cover more.
Partial Insurance (Teilkasko)
In Germany, this car insurance combines both liability insurance with some more coverage. Specifically, it also offers protection in case of fire, damage due to natural disasters such as floods and earthquakes and covers theft. It also protects wiring damage as well as broken class. With the more coverage that partial insurance covers, this means it costs more than liability insurance.
Comprehensive Insurance (Vollkasko)
When it comes to the German comprehensive car insurance, it is a type of vehicle insurance whose policy covers almost everything that needs to be covered. It incorporates both partial and liability insurance, making it the most substantial insurance level. It includes coverage of vehicle damage when you are the cause of the accident. The fact that it covers almost everything makes it the most expensive, but you will pay less when it comes to damages.
Some tips you need to know about car insurance in Germany.
Always keep yourself updated with costs
Before getting car insurance and after getting one, always keep yourself updated with the cost. Diverse companies tend to have diverse costs, thus shopping around should always be a priority before deciding on the car insurance companies go for. Compare the prices that the different car insurance companies offer and select the cheapest.
Higher deductible means cheaper insurance
By going for a higher deductible, will mean that you will pay less for your premiums. Thus, aim for this to ensure savings on your premiums
Combine different car insurance policies
If you have more than one vehicle, you should go for the same insurance company to insure them. Also, opt to combine the insurance of your car with home contents insurance or with liability insurance. You can also get your vehicle insured by registering it as your parents’ second vehicle. If they are long-term residents of Germany, you can enjoy discounts from some German insurance companies who offer discounts to their clients’ children.
In conclusion, this article explores the German car insurance market enabling the reader to understand better.