Your car is not allowed on the road without liability insurance.
According to the German Traffic Safety Council (DVR), in february 2017 alone almost 180.000 road traffic accidents recorded by the police. In the overwhelming majority of cases – namely around 163.000 times – it was only a matter of property damage accidents.
Especially in hectic holiday traffic rear-end collisions often occur. According to a study by the German automobile association ADAC, the most common causes of such accidents in Germany include disregarding the right of way, tailgating and drifting out of the lane to the left.
After an accident, many things have to be taken care of. The the injured party is entitled to compensation according to german law. The person who caused the accident is therefore obliged to compensate the other party for the damage caused by the accident. In such a case if the motor vehicle liability insurance a. Learn everything about this form of insurance coverage in this guidebook.
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FAQ: motor vehicle liability insurance
If an accident is caused by the insured vehicle, resulting in personal injury, property damage or financial loss to a third party, the motor vehicle liability insurance will pay for it. Partial fault on the part of the other party can reduce his claims.
No. Damage to one’s own vehicle is covered by partial or fully comprehensive insurance.
No. A prerequisite for the registration of a motor vehicle is the existence of an existing motor vehicle liability insurance for this vehicle.
specific advice on motor vehicle liability insurance
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In the event of a traffic accident, the motor vehicle liability insurance of the person who caused the accident will pay for the damages incurred. But how is a motor vehicle liability claim settled?? Is there a notification period? Can a fictitious settlement be made? Learn more about this topic here. » read more.
The importance of auto liability
motor vehicle liability insurance is, as its name suggests, compulsory insurance. If you want to register a vehicle in germany, it must have such insurance coverage. This is in law on compulsory insurance for motor vehicle owners (pflvg) held. the first paragraph states the following:
The owner of a motor vehicle or trailer with a regular location in the country is obliged to take out and maintain liability insurance for himself, the owner and the driver to cover personal injury, damage to property and other property damage caused by the use of the vehicle in accordance with the following regulations, if the vehicle is used on public ways or places (§ 1 of the road traffic act).
Your car may not be allowed on the road without motor vehicle liability insurance. But why is this insurance so important?? German law states that a person who is at fault for an accident and has caused injury to another road user as a result of it, must pay for its compensation.
For every car an important insurance: third party liability is a must for all vehicle owners.
If, for example, you drive into another car while parking and a dent or scratch is left behind, you have to report the damage to the insurance company, you have to pay for the repair costs. in our example we are only talking about relatively small sums, which most people could spare. However, the situation is different if serious damage to property or even personal injuries are to be lamented. In february 2017 alone, according to the DVR, approximately 21.800 people injured in an accident, around 3.400 of them heavy. Furthermore, 173 people lost their lives.
The party responsible for the accident must then, for example, pay compensation for pain and suffering, pay for the loss of earnings of the injured party or, if the accident has led to an impairment of the earning capacity of the other party, pay a lifelong pension. In the event of a death, maintenance for the surviving dependents may be due under certain circumstances. The costs can quickly run into the millions.
Most people cannot afford to pay these sometimes enormous sums. For this reason there is the motor vehicle liability insurance. This covers the costs incurred and thus provides, that each victim is sufficiently compensated – regardless of the financial situation of the person who caused the accident.
Liability insurance for the car: what benefits are included?
motor vehicle liability insurance includes various benefits. As mentioned above, it pays for any damage you cause to other persons while using your vehicle. But what exactly does the expression "use of the vehicle"? Are you aware of the liability for motor vehicles only insured when driving?
This question can be answered with a clear "no". the use of the vehicle includes not only the driving itself, but also also loading and unloading, getting in and out and refueling. If, for example, you hit the driver’s door, you will be liable for the costs of repair when getting out of the car in a parking lot If you hit the car next to you and cause a dent, the auto liability insurance will cover the repair costs incurred by the other person.
The motor vehicle liability insurance covers both personal injury, damage to property and property damage at. In the case of the latter, neither a person nor property is damaged. In fact, the injured party suffers other financial damages. In the case of a non-genuine pecuniary loss, there are consequential damages resulting from property damage or personal injury. This would be the case, for example, if an injured party is unable to work after an accident and the injuring party has to pay for the loss of earnings.
Many readers may ask the following question: "what else does auto liability insurance cover??" it assumes in the case of property damage – This includes not only damage to vehicles, but also to crash barriers, buildings or traffic signs – among other things, the following items:
What is included in motor liability insurance?? it defends against unjustified claims, among other things.
- Repair costs
- Replacement cost
- towing costs
- costs for a surveyor
- attorney’s fees of the other party
- rental car
- Telephone flat rate
In the case of personal injury, motor vehicle liability insurance pays, among other things Rescue and healing costs and rehabilitation measures. In some cases, the victim also receives compensation for pain and suffering. Furthermore, the benefits provided by motor vehicle liability insurance include, under certain conditions, a lifelong pension in the event of disability or – in the event of death – a life annuity maintenance for the surviving dependents.
The benefits offered by motor vehicle liability insurance, however, include even more. The insurer also defends unjustified claims against the policyholder, which the opposing party provides, from. This is a so-called passive legal protection. Thus, if the opposing party wishes to enforce unrealistic claims, the insurer will pay for the costs incurred in the clarification of the legal dispute arise.
What is the amount covered by motor vehicle liability insurance??
a decisive factor in motor vehicle liability insurance is the so-called coverage amount. However, many people do not know exactly what this means. Basically, the coverage amount of an insurance policy is the maximum compensation paid by the insurance company.
For this there are statutory minimum requirements. These are listed in annex 4 to § 4 abs. 2 pflvg stipulated. For conventional motor vehicles, including trailers, the following minimum insurance sums are to be observed by the insurers:
- For personal injuries: 7.5 million euros
- For property damage: 1.12 million euros
- For property damage: 50.000 euro
For buses with more than nine seats excluding the driver’s seat, the minimum insurance sums for motor vehicle liability insurance are even increased. For the tenth and each additional place come 50.000 euro for personal injury and 500 euro for pure property damage in addition. From the 81. the amount is also increased by 25.000 euro for personal injury and increased by 250 euro for property damage. However, this does not apply to buses used exclusively for teaching and testing purposes.
And if your own car is to be covered?
In the event of damage to your vehicle – for example, as a result of a wildlife accident – motor vehicle liability insurance does not pay.
As already mentioned, motor vehicle liability insurance only covers damage that you cause to other people while using your vehicle. However, you and your vehicle are not covered. if you would like to extend the insurance cover to your car, in addition to the liability insurance for your car, you will have to pay take out a so-called comprehensive cover.
Here a distinction is made between partial and fully comprehensive insurance. As a rule, partially comprehensive insurance takes effect, among other things, if your car is damaged by fire, explosion, storm, hail, lightning or a wildlife accident it is damaged, it is stolen or there is glass breakage.
The fully comprehensive insurance includes all benefits of the partially comprehensive insurance and also pays for the repair costs, if you cause an accident yourself. Furthermore damage caused by vandalism insures. The comprehensive cover of an insurance policy is worthwhile above all if you have own a new and/or expensive car.
What you should look out for when taking out car liability insurance?
In the case of a hardly manageable mass of providers you can take out motor vehicle liability insurance. Basic protection is always guaranteed. Every insurer pays for damage you cause to other people on the road and defends you against unjustified claims for damages.
But what details should you pay attention to?, if you need liability insurance for your motor vehicle? First of all, the coverage amount a great deal of importance. As already mentioned, there are statutory minimum values for this. However, a good car liability offers higher sums. For example, the Bund der versicherten (bdv) advises all policyholders to take out liability insurance for their car with a lump sum of at least 100 million euro to be agreed.
In addition, when taking out motor vehicle liability insurance, you should make sure that gross negligence is also insured. But what does that mean exactly? In many cases, insurance companies require that policyholders share in the costs incurred, if an accident is caused by gross negligence. This is the case, for example, if a person ran a red light or was distracted by the use of a cell phone while driving.
If, on the other hand, the contract for the liability insurance offered by the motor vehicle insurance company waives the objection of gross negligence, this is how the insurer is also liable in such cases. The person who caused the accident must then do not participate in the damage costs.
extra car insurance protection: additional liability modules
the right insurance for your car: liability should cover more than the statutory minimum amounts.
the differences between the various providers of motor vehicle liability insurance tend to be found in the details and above all in the additional modules that you can add to the conventional cover for an extra charge. If you frequently travel long distances, it may be worthwhile to opt for a warranty motor vehicle liability insurance to decide. This offers you in case of breakdowns and accidents both in germany and abroad quick help. as a rule, recovery and towing costs are covered up to a certain amount.
Furthermore, the insurance company will provide you with a rental car or organizes the journey home, if your car is no longer roadworthy. Under certain circumstances overnight costs at the scene of the accident covered if you have a motor vehicle insurance policy.
Also for people who driving abroad frequently, is there a recommended additional module for motor vehicle liability insurance?. This is called – depending on the insurer – usually foreign damage cover. If you are involved in an accident abroad through no fault of your own, the person who caused the accident is also obligated to pay compensation. However, the coverage amounts of foreign insurers are often at a lower level than in Germany. With the foreign damage cover your insurance takes over the settlement of the damage according to german standards and replaces the existing difference.
If you are traveling abroad with a rental car rather than your own car, there is also the right additional protection for your insurance for this. you can cover the liability for your car with a so-called mallorcapolicy equipment. Thanks to this additional coverage, you are also in case of accidents you cause abroad with a rented car, covered by your liability insurance.
What does motor liability insurance cost??
keeping a vehicle, brings high costs with it. First, of course, the vehicle must be purchased. in order to be allowed to drive, the registration is necessary, for which a fee is required. Once these initial items have been paid for, they then fall regularly recurring vehicle costs at.
The car must be refueled and serviced at certain intervals to be maintained. In addition, new cars are covered for three years and all other cars for two years main inspection to. Older used cars in particular need to be repaired more often. not to forget the car tax and in many cases the costs for a parking space.
another important item is, of course, the costs incurred for motor vehicle liability insurance. Many people who are thinking about buying a car ask themselves the following question, how much money you need to budget for this compulsory insurance each year. However, it is not possible to give a general answer to this question. Rather, it is many different factors, which influence how expensive the auto liability turns out to be. In the following, we will take a closer look at the various influencing factors.
What does liability insurance for a car cost?? This depends on many different factors.
The importance of the regional class
Depending on, where your vehicle is registered, the premium for motor vehicle liability insurance can vary greatly. If you leave your vehicle in berlin, for example, you will have to reckon with much higher costs than in the more rural region of east westphalia-lippe. The reason for this can be found in the so-called regional class find.
every region in germany has a individual claims record. With regard to the assessment for the regional class for third-party liability, the claims frequency in the region as well as average amount of damage of crucial importance.
The greater the number of claims, the higher the regional class of the registration region. The premium for the vehicle liability insurance will then be correspondingly more expensive.
Why is the type class so important??
Another decisive factor in the calculation of premiums for motor vehicle liability insurance is the vehicle to be insured. Here, the so-called type class must be taken into account. The lower a motor vehicle is classified, the more favorable the premiums are.
when calculating the type class for auto liability, we look at each model, how often a traffic accident occurs, according to which insurance benefits must be paid out to injured third parties. In motor vehicle liability insurance there are a total of 16 type classes, which are marked with the numbers 10 to 25.
The respective type class is not fixed forever. At regular intervals the classes for the different car models are recalculated. For example, the premium for auto liability insurance for the mercedes GLK 280 was downgraded two classes in september 2016. Drivers of this model can therefore look forward to lower prices.
The influence of the no-claims class
Your SF class influences, among other things, how expensive vehicle liability insurance is.
The no-claims bonus class (SF class) also plays an extremely important role in determining the cost of vehicle liability insurance. Every driver is classified in a certain class. The decisive factor here is, how long a person has been driving accident-free.
novice drivers, who insure their first car are usually placed in the no-claims class 0 classified. For many insurers, this means that inexperienced drivers have to pay more than 100 percent of the basic premium. Only the SF classes M and S are even worse. This is the penalty class for damages in the first insurance years or. To determine the class into which drivers are placed after downgrading from SF 1.
Drivers who do not cause an accident are rewarded with motor vehicle liability insurance. The longer you have been on the road without a claim, the higher your no-claims class will be. Thereby applies: the insured’s no-claims class rises with each insurance year in which no claim is reported.
The SF class thus stands for the number of years in which no claims had to be settled by the insurance company. And The better the no-claims class, the lower the premiums for automobile liability insurance. The following table shows, which percentages are generally granted on the premium for each SF class. however, keep in mind that the respective values are determined by each insurer itself.
| M/S | over 100 |
| 0 | over 100 |
| SF ½ (for drivers who have held their license for more than three years) | over 100 |
| 1 | ca. 65 – 100 % |
| 2 | ca. 60 % |
| 3 | approx. 55 % |
| 4 | ca. 50 % |
| 5-10 | ca. 40 – 45 % |
| 11-20 | ca. 30 – 40 % |
| from 21 | ca. 20 – 30 % |
Other factors influencing the cost of liability insurance
the premium for motor vehicle liability insurance also depends on the type class.
In addition, there are other factors that influence how high the premium for your motor vehicle liability insurance will be. This includes among others user age. According to statistics published by the german insurance association e.V. (GDV) older drivers cause more accidents than those in middle age. For this reason, there is the risk characteristic "user age".
Many insurance companies require drivers aged 68 and over a premium surcharge for motor vehicle liability insurance. Younger drivers – with the exception of novice drivers up to 25 years of age – benefit from deductions. People between the ages of 27 and 41 have the greatest savings potential. For this age group, deductions of 22 percent may apply. However, these are only GDV recommendations. The individual insurance companies can set their premiums at their own discretion.
Furthermore certain occupational groups also benefit from lower costs for motor vehicle liability insurance. Often civil servants, public employees and farmers hope for reductions in premiums. This is because, on average, these groups cause less damage than other drivers.
Another influencing factor is often, how old the vehicle was when it was purchased. the background is as follows: drivers of new cars or young used cars cause less damage on average than people who drive an older used car. For this reason the motor vehicle liability insurance more expensive with many providers for drivers who have purchased an older vehicle.
last but not least mileage important for the premium of the motor vehicle liability insurance. the more kilometers you drive on average, the higher the premium will be. the reason for this is quite simple: the higher your mileage, the greater the statistical risk of being involved in an accident. However, when you declare your average mileage, you should do not set values too low. If, after a reported claim, the insurance company notices that you have driven many more kilometers than stated, it can deny benefits, reduce or make additional claims.