Motor vehicle insurance

First of all, in order to avoid misunderstandings, the term motor vehicle insurance must be clarified.
There are several insurances around the subject automobile in germany, namely:

• motor vehicle liability insurance (private and commercial)
• the comprehensive insurance (partial or fully comprehensive)
• The passenger accident insurance
• The vehicle insurance certificate and
• The traffic legal protection insurance.

required by law and therefore mandatory for every motor vehicle owner, but only the motor vehicle liability insurance is required. Therefore, here with the term motor vehicle insurance in the first place it is also meant.

Why motor vehicle insurance makes sense?

Motor vehicle insurance is not only sensible, it is also absolutely necessary: because the "law on
the "compulsory insurance for motor vehicle owners", also called the compulsory insurance law (pflvg), stipulates that every owner of a motor vehicle or trailer must take out liability insurance for himself, for the owner and for the driver of the vehicle.

This sounds confusing at first, but in germany it is
it is the case that the owner, i.e. the person to whom the vehicle is registered, is not necessarily also the owner and driver. Nevertheless, he has a joint responsibility especially for the driver and may not, for example, allow the vehicle registered to him to be driven if:

• The driver is obviously not able to do so (for example, because he does not have a driver’s license or is drunk)
• The vehicle is no longer in compliance with regulations (for example, because the operating license is no longer valid)
• The vehicle is not roadworthy for any reason.

According to the road traffic act (stvg) liability in the event of an accident not only the driver who caused it, but always also the keeper, because the vehicle per se poses an operational risk (§ 7 stvg).

motor vehicle insurance is therefore a must – and not only because it is required by law. Especially in road traffic, accidents in which third parties are also involved can cause considerable costs. this is due on the one hand to the high material value that a motor vehicle usually has: it is not uncommon for even relatively minor damage to result in repair costs of several thousand euro. The consequences are even more serious if a person is seriously injured or even killed in a traffic accident. Intensive medical treatment, rehabilitation measures, possibly a lifelong need for care… driving a car naturally involves speed and therefore the risk of damage is particularly high. Without car insurance, the risk of liability would be unacceptable, neither from the perspective of the person who caused the accident, nor from that of the accident victim.

Which benefits are insured in a motor vehicle insurance (private and commercial)??

The motor vehicle insurance serves the purpose of meeting the claims of third parties arising from an accident caused by the driver of the insured motor vehicle. Like any other liability insurance, motor vehicle insurance basically settles three types of damage:

1. Property damage
2. personal injuries
3. Other property damage

1. Property damage

Even if the colloquial expression after an accident is often, "Thank God it was only sheet metal damage," the resulting property damage can very easily reach a considerable amount. The automobile is a highly complex device, which has its price not only at the time of purchase, but also in case of necessary repairs. The motor vehicle insurance covers these costs up to the amount of the agreed sum insured.

2. Personal injury

Even more important than the settlement of property damage, however, is the compensation of costs in the case of personal injury. Here, too, motor vehicle insurance is absolutely essential, because the costs of medical and therapeutic measures can quickly become very high. In addition, the victim of the accident – or, if applicable, his or her dependents – is entitled to an appropriate compensation compensation for pain and suffering, which must be paid in addition to the cost of treatment in the event of the case. Here, too, the motor vehicle insurance pays up to the amount of the agreed sum insured.

3. Pure property damage

Finally, pure property damage also plays a role in motor vehicle insurance. This is defined as damage that does not directly result in personal injury or damage to property, but nevertheless results in a financial disadvantage for the other party. An example: in an accident, the other party’s vehicle is damaged to such an extent that he cannot continue his journey. because of this, he misses an important business appointment, which causes him to miss out on profits for his own business. This loss would be the pure property damage, which would have to be taken into account in addition to the property damage caused to the car. In practice, such damage is relatively rare. But also here the motor vehicle insurance takes over the costs.

Passive legal protection in motor vehicle insurance

If an accident occurs and the other party makes a claim against the person who caused the accident, the motor vehicle insurance company will first check whether these claims are justified

• Basically legal and
• Reasonable in terms of amount

Are. If both are the case, the settlement of the damage will take place. Otherwise, the car insurance company will defend the claims – if necessary with legal means. Therefore, the benefits of motor vehicle insurance always include passive legal protection for the policyholder.

And what about the own vehicle? The comprehensive insurance

The motor vehicle insurance benefits described so far all relate to damage to the health or property of the other party involved in the accident.
But what about the driver or the passengers?. Owner of the vehicle?

The motor vehicle insurance does not in fact cover
for this. Therefore, it is essential to take additional precautionary measures. In addition to a private accident insurance for the driver plays the comprehensive insurance a decisive role.

It is the most important supplement to motor vehicle insurance and is therefore very often taken out together with it. Many insurers also offer package solutions under the name of motor vehicle insurance.
The comprehensive insurance is available in two variants:

As partially comprehensive insurance it covers damage caused by

• fire and explosion
• Robbery, theft and burglary
• Glass breakage
• Scorched cables
• Marten bite
• Thunderstorms (storms, hail, lightning, floods)
• Game accidents (when the vehicle is in motion)

Included in the insurance cover.

In the case of the fully comprehensive insurance the following risks are also covered in addition to those mentioned above:

• Vandalism
• Accidental damage, especially in the case of self-inflicted accidents to the own vehicle.

Since the financial risks are no less serious when they affect one’s own vehicle, it is essential to consider extending the insurance cover by means of additional comprehensive insurance when taking out motor vehicle insurance.

What to consider before taking out a motor vehicle insurance policy (private and commercial)?

In view of the significant price differences between the various providers, it is essential to make an assessment before taking out motor vehicle insurance comparison must be carried out to ensure that the most favorable tariff can actually be selected. In addition, there is the special feature of the motor vehicle insurance that the the policyholder must always be the vehicle owner must always be the vehicle owner – but not necessarily the driver or the owner. Therefore it is quite possible and legitimate, for example, to register the vehicle of young people as a second car to the parents, in order to profit from their discount for the damage-free years. However, it is important to note that this possibility is subject to restrictions imposed by the provider of the motor vehicle insurance. So it may well happen that the second car may only be driven by the policyholder or his spouse – and in this case nothing would be gained for the actual driver. On the contrary: the motor vehicle insurance would not be obliged to pay any benefits at all if an accident were to occur.

Here are our further topics on motor vehicle insurance:

What costs are covered by motor vehicle insurance in the event of a claim??

Motor insurance is, of course, primarily intended to cover damage caused to third parties through the fault of the policyholder. This can be

• Personal injury,
• property damage or
• Pure property damage

Act. The compensation payments of the motor vehicle insurance include in the case of property damage among other things:

• The repair costs plus a value reduction compensation (since a vehicle once injured in an accident loses value despite complete repair)
• In the case of total economic loss, the replacement value (less the residual value)
• The costs for a rental car or – in the case of non-use – a corresponding compensation for use
• In some circumstances, the expenses incurred for towing services, re-registration, etc.

For personal injuries the vehicle insurance will reimburse the treatment costs, as well as any pain and suffering payments that may be requested. If the injuries of the accident result in a professional or occupational disability, the motor vehicle insurance also takes over the corresponding pension payments.

In addition, the range of services offered by the motor vehicle insurance also includes a comprehensive insurance cover claims settlement service. This also includes the defense against unjustified or unreasonably high claims and thus simultaneously fulfills a passive legal protection function.

Which costs are not covered by motor vehicle insurance in the event of a claim??

The motor vehicle insurance always pays out if the policyholder is causally responsible for damage caused to a third party. This also applies if the damage was caused by negligence. However, there are a few exceptions that exempt the motor vehicle insurance company from its obligation to provide cover or. The policyholder may have to pay the following costs. So any precept naturally an exclusion criterion. If, for example, a driver clearly intends to commit suicide by provoking an accident and thereby approvingly accepts the consequences of his actions, then his motor vehicle insurance is not obliged to pay for the resulting damages. However, according to § 12 of the "Gesetz uber die pflichtversicherung fur kraftfahrzeughalter" (pflichtversicherungsgesetz, pflvg) (law on compulsory insurance for motor vehicle owners), there is a so-called compensation fund, from which money is paid out to accident victims in certain situations, if no motor vehicle insurance pays for the damages.

For drunk driving, hit and run or unauthorized use of the vehicle of a vehicle, the car insurance is entitled to up to 5.000 euros can be claimed back from the policyholder.

Apart from that, the car insurance does not pay in the case of damage to your own vehicle and/or your own health. For this reason, insurance coverage should be extended to include comprehensive insurance for property damage and private accident insurance to protect against the health consequences.

How to behave with a car insurance in case of a claim?

Of course, every policyholder hopes that he will never have to make a claim on his car insurance – but it is still important to know what to do in the event of a claim.

First of all, of course, the general rules for the behavior after a traffic accident:

1. Stop and secure the accident site
2. If necessary, call the emergency services
3. If necessary, give first aid
4. If necessary, notify the police.

The Notification of the police is always mandatory when

• Persons have been injured
• Serious property damage has occurred
• The question of guilt is not clear
• Several vehicles are involved in the accident
• The other party leaves the scene of the accident without permission
• There is obviously a criminal offense, such as driving under the influence of alcohol
• the other party to the accident lives abroad or his vehicle is registered abroad

In view of the Car insurance the following things should also be taken into account:

1. Securing evidence (photos or sketches of the accident site, photos of the damage to the vehicle)
2. Recording the data of the other party involved in the accident (license plate number, name, address and insurance company)
3. If necessary, recording the data of accident witnesses
4. In no case one premature admission of guilt submit!

After the accident, the motor vehicle insurance must be accident report be made. This must be done together with the accident report within one week after the accident, the claim must be submitted to the motor vehicle insurance company: in the case of fault or at least partial fault on the part of the policyholder, the claim must be submitted to the policyholder’s own motor vehicle insurance company; in the case of clear sole fault on the part of the other party, the claim must be submitted to the other party’s motor vehicle insurance company.

The car insurance in special accident situations

There are some special accident situations that should be briefly discussed here.

If the other party is not at the scene of the accident (for example, if there is damage to parked vehicles),

If the person who caused the accident waits for some time at the scene of the accident. In the event of serious damage, the police must be called in. In the case of minor accidents, it is sufficient to leave the name and address at the scene of the accident. In any case, the police and the vehicle insurance company should be notified.

If there is only a slight damage to the bodywork (so-called minor damage – up to approx. 500 euro),

Can the police not be called, if the situation is clear. Most car insurance companies are willing to settle small claims even without a police report. In this case, an accident report should be prepared on site and signed by all parties involved.

In any case the police and/or the forestry office must be informed, even if the animal has escaped. If the animal is still at the scene of the accident, it should not be touched and certainly not taken away. The vehicle involved in the accident should in any case be inspected by the motor insurance company, especially if the damage was caused by an evasive maneuver.

When does the insurance cover begin??

The coverage of the motor insurance begins when the insurance company has accepted the application of the policyholder and confirmed this by sending the policy. However, since a vehicle cannot be registered without being insured, most insurance companies already issue the so-called electronic insurance confirmation for the motor vehicle insurance in advance. This is a seven-digit code of numbers and letters that serves as proof of insurance at the registration office. From the moment the vehicle is registered, there is provisional insurance cover until the policyholder has received the policy. In addition, the timely payment of the first premium for the motor vehicle insurance is, of course, also a condition for the commencement of the insurance cover. If it does not occur, then retroactively also the provisional coverage becomes ineffective.

which amount of coverage / sum insured is reasonable?

Because motor vehicle insurance is an important
has a protective function for those who have to pay for a
If you are injured in an accident, it is not only the conclusion as such that is important required by law, but
also the minimum amount of coverage.

It is within the framework of § 4 of the "law on
compulsory insurance for motor vehicle owners" (compulsory insurance act, pflvg) regulated
and amounts:

• For property damage: 1.12 million euros
• For personal injuries: 7.5 million euro
• For pure property damage: 50.000 euro.

In the case of vehicles used for the transport of persons and which have more than nine seats, correspondingly higher minimum insurance sums apply for the motor vehicle insurance.

How high the amount of coverage for motor vehicle insurance ultimately is depends on the respective provider. Many insurance companies offer insured sums in their policies that exceed the statutory minimum requirements many times over. With the HUK and the barmenia for example it is 100 million euro for all kinds of damages. This may sound like an astronomical amount at first, but it is quite conceivable that there could be scenarios in which amounts are incurred that are significantly higher than the legally required coverage. According to wikipedia, the most expensive motor insurance claim in germany was an accident in 2004 in which a car hit a tanker truck, which then fell off a bridge and set it on fire. The property damage amounted to 32 million euros. When choosing a motor vehicle insurance policy, you are therefore well advised to pay attention to the amount of coverage.

What does the premium depend on and what factors influence the premium rate??

With regard to pricing, the providers of motor vehicle insurance are comparatively free, so that there can be considerable differences between the various tariffs. However, there are some parameters that influence the level of premiums for motor vehicle insurance at all insurance companies:

• frequency of claimsA discount on the car insurance premium is granted for claim-free years. Conversely, in the event of frequent claims, an upgrade may also be granted.
• Type class of the vehicle (depending on statistical values)
• Regional class the place of registration (also depending on statistical surveys)

In addition, there are some so-called "soft tariff characteristics", which can vary, however, with the different providers of motor vehicle insurance. These include for example:

• The age of the policyholder and/or driver
• The number of years that have passed since the acquisition of the driving license (driving experience); is queried for the policyholder and/or driver
• occupation of the policyholder (some providers have special rates for public service)
• Annual mileage
• the group of drivers (here it is of particular interest whether very young or very old people will be driving the car)
• Score in flensburg

What are the advantages of comparing car insurance??

A comparison of car insurance allows the policyholder to get an overview of the rates currently available on the market. This makes sense both before the initial conclusion of a contract and for customers who already have a contract in force. When comparing car insurance, the most important thing is to find out which offer is the best best price-performance ratio represents.

Despite the legal regulations, the included benefits can differ from provider to provider. Every motor vehicle insurance policy must settle claims for property damage, personal injury and property damage. But the amount of coverage for example can be different. It becomes really interesting, however, when the motor vehicle insurance also includes certain additional services come into play. the so-called "discount saver" is very popular, for example, which ensures that premiums do not increase even in the event of a claim if a certain number of claim-free years have passed. The inclusion of rental vehicles abroad in the motor vehicle insurance (the so-called "mallorca clause") is also important for many policyholders.

Insurance companies are free to set their own prices for motor vehicle insurance. Therefore, only those who compare the offers available to them can be really sure that they will receive the most favorable motor vehicle insurance rate for their needs.

Can the contributions to the motor vehicle insurance be deducted from the tax??

Yes, the premiums for car insurance can be claimed as tax deductions. There are even various options for this – depending on how the insured vehicle is used.

For pure occupational used vehicles, i.e. company cars or the vehicles of self-employed persons, can have both the premiums for liability insurance and the premiums for comprehensive insurance deducted from the motor vehicle insurance as operating expenses be fully deducted.

With the private On the other hand, for vehicles in use, only the portion that is actually attributable to liability insurance can be deducted as motor vehicle insurance. The optional comprehensive insurance is not recognized by the tax office. In this case, the expenses for the motor vehicle insurance will be charged as a special issue according to § 10 estg – and is therefore only possible as long as the maximum amount allowed for this has not yet been exhausted.

Who his vehicle professional and private will generally keep a logbook anyway. The premium for the motor vehicle insurance is then offset pro rata according to the ratio between professional and private trips.

What has to be considered when cancelling the car insurance??

For almost all car insurance providers the insurance year starts with the calendar year. The ordinary termination can therefore be terminated on the 30th day of the month following the statutory notice period of one month. November will take place.

A extraordinary The motor vehicle insurance can be cancelled for the following reasons:

• After a case of damage (by the insured or the insurer)
• After a premium increase due to the assignment of the vehicle to another type class or the assignment of the place of residence to another regional class (by the policyholder)
• At sale of the vehicle (by the policyholder)

If the reason for the extraordinary cancellation of the car insurance is a sale, then it is possible without notice period. Otherwise, the deadline of one month also applies here. The cancellation of the motor vehicle insurance must be made in writing in every case.

What should be considered when changing the car insurance??

The change of the motor vehicle insurance is always possible at the end of the month beginning of the year possible. It is important to note that
make sure that the old contract is terminated by the
30. November of the previous year.

For this reason, there are often particularly favorable offers for motor vehicle insurance in autumn. However, if you sell your vehicle and buy a new one, you have the right to submit a special notice of cancellation, regardless of the term of the contract,
to change with the vehicle also the provider of the motor vehicle insurance.