Play it safe with car insurance
An accident can happen quickly on the road. If you are responsible for damages, you need a car liability insurance you can rely on. Such a policy is mandatory for anyone who drives a motor vehicle on public roads. Find out what you should look out for when choosing such an insurance and how you can easily change the provider.
The advantages:
- Coverage for traffic accidents
- Checks third party claims free of charge
- fends off unjustified claims for damages
- Can be combined with partial or fully comprehensive insurance
- deductible possible
- Accident free is financially worthwhile
you are interested in motor vehicle insurance? You can find more information and conditions at your savings bank.
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How it works
A brief moment of carelessness and it’s already happened. Even experienced road users are not safe from accidents. motor vehicle liability insurance is therefore compulsory. In order to be able to register a vehicle for road traffic, you must show proof of insurance at the registration office. This also applies to bikers, who are required to have motorcycle liability insurance.
Motor vehicle liability insurance is there for you in the event of a crash. In the event of a claim, it pays for damage to property or personal injury, for example if you damage someone else’s vehicle or – even worse – if a person is injured and treatment costs are incurred.
As part of your motor vehicle liability insurance, an expert will check to what extent you are responsible for the accident. If so, the insurance will cover justified claims for damages by the other parties involved in the accident.
1. Check your existing insurance coverage.
You have already taken out a contract for motor vehicle liability insurance? Then see if you can’t find a policy with better insurance conditions.
Before you cancel your existing car insurance, you should already have a concrete offer from another insurance company. In the case of liability insurance, insurers are not allowed to refuse a customer, but in the case of supplementary partial and fully comprehensive insurance they can. Term overlaps are also expensive.
Important to know: if you are on your bike or on foot and cause an accident, your car insurance will not cover you. For cases like this, you need private liability insurance, the most important private insurance of all.
2. check the cancellation period.
Typically, a new insurance year begins on 1. January. The notice period is one month, so in these cases it must be given by the 30th of the month. November of the previous year. But there are also contracts with other cancellation periods.
In the event of premium increases, a cancellation period of four weeks from receipt of the notification applies. There is also a special right of cancellation in the event of a change of vehicle and after a claim.
3. Make sure you have sufficient coverage.
There are legally prescribed minimum coverages. This means that every insurance company must pay up to this amount in the event of a claim. in this country the minimum coverage is 7,5 million euro for damage to persons and 1,12 million euro for damage to property.
Most insurance companies offer significantly higher coverage amounts. 100 million euros for property damage and 15 million euros per injured person are highly recommended. So don’t just look for a particularly inexpensive car insurance policy, but also for the sums it pays out in the event of a claim.
4. Combine your policy with partial or fully comprehensive cover.
In order to be able to drive your car in a relaxed manner, you should not rely solely on the legally prescribed motor vehicle liability insurance. This is because it does not cover damage to your own vehicle. It is therefore best to combine your car insurance with partial or fully comprehensive insurance. The following also applies to two-wheelers: motorcycle insurance can be extended to include comprehensive insurance for motorcycles.
With comprehensive insurance, you are also protected against other risks in road traffic. Partial accidental damage insurance saves you the hassle of damage for which you are not responsible. It covers, for example, the costs of theft, fire, storm, glass breakage or a collision with an animal.
If you are at fault for an accident, fully comprehensive insurance reduces your financial burden. because it also covers the cost of repairing their car. It also pays for the repair of damage if your vehicle has been wilfully damaged by others.
5. Think about a deductible.
With most comprehensive insurance policies, you can reduce the amount of your premium by paying a deductible. In the event of a claim, the insurance will only cover the costs that exceed the agreed deductible. You pay the rest out of your own pocket. Select the amount of the deductible so that you can easily pay it in case of an accident.
6. Get advice.
Your savings bank advisor will be happy to provide you with further information on the subject of car or motorcycle insurance and will help you to select a favorable tariff that suits you best.
Important questions and answers
Is motor vehicle liability insurance compulsory??
Yes, car and motorcycle owners must take out motor vehicle liability insurance in Germany.
Why do you need car insurance??
Anyone who causes an accident and thereby causes damage to others must pay for the costs incurred. In the case of serious accidents, the damage can run into the millions and threaten your existence. The motor vehicle insurance protects you from the financial consequences.
What does motor vehicle liability insurance cover??
motor third party liability insures personal injury, vehicle damage and other property damage that the insured person causes to others by accident. Damage caused intentionally is excluded.
Liability insurance defends against claims that it considers to be unjustified. So you have a so-called passive legal protection.
What are no-claims classes?
The longer you drive accident-free, the lower your insurance premium will be. For this reason, vehicle owners are divided into no-claims classes (SF classes): as a rule, SF 0 is the lowest and SF 35 the highest level. Some insurers now go up to SF 50. The number means one year without a reported self-inflicted claim. If you are in SF 35, you currently only have to pay 17 to 30 percent of the insurance premium of someone in SF1 – and that applies to both liability insurance and comprehensive insurance.
Who is covered by motor vehicle liability insurance??
When you take out an insurance policy, you must state which persons regularly drive the car. You are then insured. However, each additional rider increases the costs for the policy.
Attention: your insurance coverage is not affected if you rent your car and the person causes an accident. However, the insurance company can demand subsequent premiums or impose a contractual penalty because this person was not specified when the insurance was taken out.
Does the cover also apply abroad??
Your motor liability insurance is valid throughout the EU when you are driving your own car. Outside the EU, insurance cover only applies if the country of travel is entered on the so-called green card. You will receive this card free of charge from your insurer.
If you want to travel to an area that is neither part of the EU nor on the green card, you should have the scope of your insurance extended before you start your trip.
The so-called mallorca policy applies to accidents with rental cars in other european countries. The coverage amounts of the insurances abroad are often very low – this supplement to the motor vehicle liability insurance compensates for insufficient coverage amounts in case of damages. Officially, this clause is called "insurance for the use of third-party vehicles subject to insurance".
What proportion of the costs is borne by the vehicle insurer??
In the event of property damage, the towing and repair costs are paid. The insurance also covers the costs of a rental car, an appraiser or loss of use. In the event of a total loss, the replacement value is paid for.
If people are injured, the motor vehicle liability insurance pays, for example, medical and hospital costs, compensation for pain and suffering, loss of earnings, and compensation for permanent damage.
What does car insurance cost??
The premium for car insurance depends on many factors, including the type of car, the region in which the car is registered (regional class), the driver’s no-claims class, the annual mileage and the type of accommodation for the car. The number of drivers who use the car also has an impact on the premium, as does the amount of the deductible.
According to the german Federal statistical office, german households paid an average of around 492 euros for motor vehicle insurance in 2019.
Which clauses should I pay attention to??
If the driver has acted with gross negligence and, for example, used summer tires in winter, failed to see a red light or caused an accident with a cell phone in his or her ear, insurance companies usually do not cover the costs. If you still want to be protected, you should insist on the "waiver of the defense of gross negligence". Driving under the influence of alcohol and intentional acts are still excluded.
If you want to insure your new car, you should pay attention to the new value clause. In case of total loss or theft, the insurance covers the value of the new car and not only the residual value.
Another important point is animal damage: the partial cover insurance always includes protection in the event of a wildlife accident. However, insurance companies sometimes differ in their definition of "wild". If the insurance is based on the federal hunting law and only refers to "hairy game", then accidents with deer, wild boars or hares are meant, but not with horses, cows, sheep, goats, cats or birds. The extended wildlife damage clause, which includes "animals of all kinds", is more secure.
What is the cancellation period for motor vehicle liability insurance??
Contracts can usually be cancelled with a notice period of one month to the end of the annual term. In the event of a claim or premium increase, you have a special right of termination.
What documents do i need to change my car insurance??
If you want to change your car insurance, you need to have the following documents and information to hand:
- Registration certificate part I. For vehicles registered for the first time before october 2005, you will need the vehicle registration document instead. Here you will find the manufacturer code number (HSN) and the type code number (TSN), which are used as the basis for calculating the insurance premium.
- The current insurance contract and the last premium invoice. Here you can also find your current no-claims class (SF)
- Address, date of birth and account details
Which insurance documents do I need to register or deregister my vehicle at the registration office??
You need the electronic confirmation of insurance (evb), with which your insurance company confirms that you have a policy for your vehicle. You can apply for the seven-digit number-letter combination free of charge online from your insurer.
Can I deduct the cost of vehicle liability insurance??
Premiums for liability insurance are tax deductible. Employees can deduct vehicle liability insurance on their income tax return if they are the owners of the vehicle themselves. The tax office recognizes the premiums as a pension expense. Most taxpayers, however, already reach the maximum limit in terms of pension expenditure by declaring their health insurance contributions.
Self-employed persons can also declare their partially comprehensive or fully comprehensive insurance as operating expenses in addition to their motor vehicle liability insurance.