Everything you need to know about car insurance

The scope of car insurance can vary depending on the provider and tariff. You can find out what they cost with the car insurance comparison of Stiftung Warentest by selecting or deselecting the various benefits. Here are the most important benefits of car insurance and our tips in a nutshell:

Coverage. This is important in motor vehicle liability insurance. For a small surcharge, it offers higher sums insured than those required by law. Choose 50 million euros, better still 100 million euros. Although such high damage is rare, it does happen from time to time. For personal injury, however, the sum insured per injured person is lower, often twelve or 15 million euros.

Hired car. This is also an addition to motor vehicle liability insurance. For rental cars abroad, the statutory coverage amounts are low in some holiday countries. With this addition, your own motor vehicle liability insurer increases the coverage for the borrowed car. More about this in the specials Car rental abroad and No trouble with the rental car.

Foreign damage protection. Also an addition to motor vehicle liability. If you are involved in an accident abroad through no fault of your own, your own motor vehicle liability insurer will settle the damage with the foreign company. That saves nerves.

Gross negligence. This clause is important in partial and fully comprehensive motor vehicle insurance: If someone causes damage through gross negligence, partial and fully comprehensive insurance companies may reduce or cancel their compensation completely. Many tariffs offer the "waiver of the objection of gross negligence" as an extra. Then they also pay if there has been a crash, for example because you have run a red light. We strongly recommend that you conclude this clause.

replacement value compensation. This clause is important in partial and fully comprehensive insurance: New cars in particular lose value quickly, often weeks after purchase. If an accident then occurs, there is correspondingly less of the partial or fully comprehensive motor vehicle insurance. Therefore, the contract should provide for compensation at replacement value. The deadline should be at least twelve months. There is something similar for used cars. Then the insurer reimburses the purchase price.

Consequential. Simple partial comprehensive tariffs often only insure direct damage, for example the replacement of a hose bitten through by martens. The resulting consequential damage is much more expensive. Often you don't even notice the leaking radiator hose at first. This can lead to an expensive engine defect. Consequential damage should therefore also be insured.

Wild. Many tariffs in partial comprehensive motor vehicle insurance only pay in the event of wildlife accidents if it was furred game - for example, deer, roe deer, wild boar. Accidents with a pheasant, a runaway cow or a runaway dog are not included. It is better if the contract says "all animals". The best way to behave in the event of a wildlife accident is described in the Special Wildlife Accidents.

Repurchase. With the "Claims Buyback" clause, you have six, often even twelve months, to pay for a claim out of your own pocket – even if the insurer has already settled. In this case, the no-claims discount will not be downgraded.

Driver protection. This is a standalone add-on to car insurance. If there are injuries in a car accident, the motor vehicle liability insurer of the guilty party pays. For example, he pays compensation for pain and suffering and loss of earnings. But she only bears the costs for the accident victims, she does not pay compensation for pain and suffering or other costs for the person who caused the accident, so she gets nothing. In this case, a driver protection policy helps. More about this can be found in the Driver Protection special.

E-car. For electric cars, specific claims relating to the battery and charging process should also be insured, such as damage and consequential damage caused by short circuits or theft of the charging cable. We generally recommend fully comprehensive cover with all-risk cover for e-cars. Detailed information on important benefits for e-cars and tariffs that cover them can be found in our car insurance comparison.

Less important additional services

Deduction New for Old. If the customer's car is repaired with new parts after an accident, it may happen that the insurer does not cover the full workshop bill. After all, the new parts can mean an increase in the value of the car, for example a new paint job. He deducts this profit from the compensation. With this clause, he waives the deduction, so the customer receives the full invoice amount.

Discount saver. With this clause, car owners keep their previous percentage if they cause an accident. In old contracts, this can automatically be included free of charge for customers in very cheap SF classes. In new contracts, the discount saver is rare.

Discount protection. This is the replacement for the discount saver, but usually costs extra. This means that the customer is not downgraded after an accident. In some tariffs, he is allowed to report up to three claims in total. Unlike the discount saver, customers who are not yet in a very low SF class can also conclude this clause. If the customer later changes insurers, the SF class that he would have without discount protection applies. So then the accident counts after all.

Leasing. GAP cover applies if the insurance company only pays the replacement value of the vehicle after a total loss or theft. In the case of leased cars, however, it is often below the residual value agreed in the contract.

Direct settlement. If the customer suffers an accident in Germany through no fault of his own, his own insurer compensates for the damage as if the other party in the accident were insured with him.

Waivable services

Some additional services are included free of charge in some tariffs. They wouldn't be worth a surcharge either:

• Vignette. If the windshield is broken and needs to be replaced, the stickers stuck there are usually also gone and have to be repurchased. But these are not such high amounts that insurance cover would be necessary.
• Parking damage. This additional protection often only applies if only a single component is affected. In addition, in some tariffs it may be no more than the size of the palm of your hand. In addition, there is often a 50 euro deductible.
• Ferry. With this clause, the car is insured in the event that it sinks in the water or is damaged in a ferry accident.
• Cell phone. This clause insures mobile phones that are parked in a parked car against theft. However, this only applies if the device is not visible from the outside.

One thing in advance: You can usually save a lot by changing providers. Cheap and good policies are listed in the car insurance comparison of Stiftung Warentest. But even without a change, there are a whole range of ways to save money:

Excess. In the case of comprehensive insurance, we consider a deductible to be useful. Then the customer has to pay for the damage out of his own pocket up to the amount of this sum. In partial comprehensive insurance, we recommend a deductible of 150 euros, in fully comprehensive insurance 300 euros (including 150 euros in partial casco). Higher amounts hardly bring any contribution advantages.

Date of payment. Instead of paying quarterly or semi-annual installments, it is more economical to transfer the entire annual bill for the insurance at once. This can result in a premium discount of around five percent.

Annual kilometers. It is often worthwhile to estimate the total kilometers that you are likely to drive per year as accurately as possible. If there are too many kilometres on the odometer towards the end of the year, it is possible to report them later. Some insurers then recalculate the underpaid premium. Many car insurance companies ask about the mileage every few years. The consequences of providing incorrect mileage information can be found in the special Car insurance: What happens if you cheat.

Driver group. If only the car owner drives the car, it is much cheaper than if other people are also allowed to drive. If this is only the partner, it usually makes no difference. However, an unlimited group of drivers can easily increase the premium by 50 percent or more, depending on the provider.
Important: If there is a limited group of drivers, only the appropriate people are allowed to get behind the wheel. If someone else drives, the insurance cover does not expire immediately, but the car insurance company may then demand a premium surcharge. Some insurers also charge a penalty, for example half or a full year's premium of the insurance premium. If, despite the limited number of drivers, someone else is to get behind the wheel as an exception, many insurers allow this at no extra charge. However, the customer must register this in advance. More about this can be found in the special If the driver is not registered.

Workshop commitment. In the case of tariffs with a connection to a workshop, the customer undertakes to visit only one of the workshops recommended by the car insurance company after an accident. Many providers have a dense network of partner companies that offer them low prices. Workshop tariffs are only available in hull policies. In the case of other repairs, inspections or after an accident through no fault of their own (which is settled by the opposing motor insurer), the customer is allowed to choose the workshop.

Telematics. At these special rates, a small device measures driving behavior. It is permanently installed or inserted into the cigarette lighter. Instead, some car insurance companies work with apps that you download to your mobile phone. They register emergency braking, cavalier starts, fast corners, excessive speed and more. Cautious drivers receive a discount. However, some telematics tariffs are more expensive than cheap normal tariffs from other providers, even at the highest discount.
Tip: Often, novice drivers can save 10 to 30 percent compared to the normal rate of the same insurer. More on this topic in our special Telematics in Car Insurance.

Professional discount. Some motor insurers give discounts to certain occupational groups, especially civil servants and employees in the public sector, but also employees of companies that are treated as such, such as foundations.

Garage. If you park in a garage instead of on the side of the road, you should indicate this, because this reduces the risk of theft and therefore also the premium. The car does not always have to be in the garage. Exceptions are allowed, for example when visiting friends.

Property owners. Those who live in their own house or apartment sometimes receive a discount. Those who have their own house or apartment drive more carefully, statistics from some motor insurers show.

Type class. If you are still thinking about which car you want to buy, you can pay attention to the type class. Insurers classify all car models into classes, depending on the usual damage and repair costs. In motor vehicle liability insurance, there are 16 type classes from 10 to 25, in partial comprehensive insurance they range from 10 to 33, in fully comprehensive insurance from 10 to 34. The higher the type class, the more expensive the insurance. The type class in which a particular car is classified can be found on the typklasse.de website. Often, the engine makes a decisive difference in the same car model.

Rail passengers. Discounts for holders of a BahnCard or a monthly ticket for local transport are rare, but they still exist. Savings: up to 7 percent.

First owner. Some motor insurers give discounts to first-time owners of a vehicle. They assume that people who buy a new car drive their car particularly carefully.

Year of construction. For new cars or young used cars, there is sometimes an additional discount.

Children. Those who care for underage children drive more carefully, some car insurance companies believe. They give a discount if children live in the household.

Electric cars. Some car insurers give discounts for electric cars, both for pure electric cars and for hybrid models.

Fuel consumption. Some car insurers grant discounts for a particularly fuel-efficient car.

Safety training. Participation in a driving safety training course can bring a price discount with some car insurers.

Change. A price saving of often well over 100 euros can be achieved by changing insurers. Even if you have been with a low-cost car insurance company for years, you can save a lot of money as a new customer with another company – especially during the switching season in October and November. Cheap rates are mentioned by the car insurance comparison of Stiftung Warentest.

Saving tips for novice drivers

Car insurance is particularly expensive for newcomers to a driver's license. It is often worthwhile to register your parents' first own car as a second car. After a few years, beginners can then have the discount transferred to themselves. Taking out your first own contract with your parents' insurer can also save money (5 savings tips for novice drivers).

Savings tips for seniors

Older people are also asked to pay heavily by the car insurance companies. They do benefit from favourable no-claims classes, which seems like an age classification. But from about 60 years of age, the contributions still increase. The statistics of motor insurers show that the risk of accidents increases from this age onwards – but only for minor bodywork damage. Serious accidents involving older people are rather rare. We explain why this is the case and what those affected can do in our special How older drivers are asked to pay.

The region in which car owners live has a strong influence on the price. Motor insurers classify the more than 400 registration districts nationwide into regional classes – depending on the amount of claims in the past five years. There are 12 classes in motor vehicle liability insurance, 16 classes in partial comprehensive insurance, and 9 classes in fully comprehensive insurance. This classification takes into account the frequency of accidents in the respective registration district, as well as the road conditions and the number of registered cars. In hull, there are also thefts, storm and hail damage or the number of wildlife accidents. The price differences can be considerable depending on the region. Which regional class applies where is stated in the insurer's invoice and on regionalklasse.de.

Tip: The best car insurance for you individually is determined by the car insurance comparison of Stiftung Warentest.

Type class – it depends on the model

It also depends on the respective car model. Some types of cars are often involved in accidents or are particularly expensive to repair. Motor insurers look at the approximately 32,000 different models on the roads for damage and repair costs over the past three years. After that, the cars are divided into type classes. In motor vehicle liability insurance, there are 16 type classes from 10 to 25, in partial comprehensive insurance 24 type classes from 10 to 33, in fully comprehensive insurance 25 type classes from 10 to 34. It is advisable to take a look at the type class before buying a car. There are often big differences between the same car model, depending on the engine. The diesel variants are often more expensive than the gasoline ones. Which type class applies is listed under typklasse.de.

Lots of information in the FAQ car insurance

Many more questions about car policies can be answered in our FAQ Car Insurance. For example, does it make sense to take out car insurance with discount protection? And what is the difference to the discount saver? Are direct insurers worse at settling claims? Can grandparents transfer their no-claims discount to grandchildren when they hand in their car? What about special rates for the disabled? What is a workshop tariff?

Our individual price comparison for car insurance will help you

There is enormous competitive pressure in motor insurance. Especially in autumn, providers try to lure customers away from each other - especially by lowering prices for new contracts. It is therefore worthwhile to compare prices every year. The car insurance comparison of Stiftung Warentest helps with this. Changing car insurers is not difficult. We explain what you need to pay attention to here step by step.

Step 1: Cancel your car insurance

Cancel on time. Most contracts run until December 31 and are then automatically extended by one year. Then the cancellation letter must be with the insurer by November 30. The situation is different with the few contracts that always end on the date on which the policy was taken out during the year. The notice period expires one month before this date. An informal letter is sufficient: "I hereby resign." Don't forget: signature, contract number and license plate. For reasons of evidence, also ask for a confirmation of termination. If none comes, send the whole thing again, this time by registered mail. However, the termination of a car insurance policy is also effective without written confirmation (OLG Braunschweig, Az. 11 U 103/18).

Missed the appointment? Usually the annual bill comes in October or November. Sometimes, however, only in December. If you wait that long, you have missed the cancellation date and will remain tied to car insurance for another year. If the annual bill has not arrived by mid-November at the latest, you should cancel before then. If it later turns out that the previous car insurer is the cheapest after all, you can simply take out a new policy there. You may even receive a special discount for new contracts.

Teasing out the loyalty bonus. If you don't want to go through the trouble of switching, you can also try calling the car insurer. Often it is enough to point out that you have a cheaper offer elsewhere and are considering changing – and some clerks conjure up a loyalty bonus or something similar.

Your Rights. If your motor insurer has increased the premium, you may terminate the contract extraordinarily with a notice period of one month from receipt of the invoice – i.e. even after 30 November. As a rule, there is a comparative contribution in the annual financial statements. This is the sum you would have had to pay if the new no-claims discount had already applied in the previous year. If the comparative contribution is below the new contribution, the price has been raised. Look closely: Some motor insurers hide the comparison premium in the small print.

Step 2: Determine benefits

Check your insurance coverage. For old cars of low value, motor vehicle liability insurance is sufficient. For well-preserved used cars, partial comprehensive insurance should be added in order to be insured at least in the event of storm damage, glass breakage and theft. Fully comprehensive insurance makes sense for expensive cars. Individual benefits are also important, such as the insurer's waiver of the objection of gross negligence, extension of wildlife damage cover to all animals (not only furred game), insurance for consequential damage after marten bites and, in the case of new cars, compensation for replacement value for at least twelve months.

Step 3: Compare prices with car insurance comparison

The price pressure on the market for motor insurance is enormous. Around 90 companies offer policies. The price often depends heavily on individual characteristics such as age, occupation, place of residence, annual mileage, car model. Therefore, even a tariff that is otherwise rather cheap can be expensive in individual cases. The only thing that helps is an individual price comparison. Stiftung Warentest offers this with its independent car insurance comparison. We will determine individually suitable policies for you that will save you as much as possible.

Step 4: Conclude a new contract

After that, there is time to conclude a new contract. You can write to the insurer by post and ask for a quote or go to a branch. It is particularly easy to take out a contract via the Internet. On the screen, the car insurance companies immediately name the price for the new contract. The policy then arrives a few days later by post.

Compulsory acceptance in motor vehicle liability insurance, not in hull

Most of those affected can proceed according to this pattern. However, this can be different for particularly expensive cars. In motor vehicle liability insurance, acceptance is compulsory. The insurers have to accept every application, with a few exceptions (see above). But not in the hull: they are also allowed to refuse. In practice, this is extremely rare. But with particularly expensive cars, this can happen. Some motor insurers do not offer fully comprehensive insurance for cars with a value of over 60,000 euros or charge surcharges. Others are not based on price, but on the type class. If you drive such a car, the first step should be to take care of a new contract and only then cancel the previous policy.

Ten misconceptions about car insurance

Many people have misconceptions about car insurance. In our print magazine Finanztest, we have corrected ten misconceptions. You can download the article from Finanztest 3/2021 here as a PDF.

source :Car Insurance: Everything You Need to Know About Car Insurance | Stiftung Warentest