There are different types of insurance policies for the car. Examples are liability insurance, comprehensive insurance or legal expenses insurance. But which are obligatory and which are not? What is insured with which insurance?
The owner of a motor vehicle or trailer (...) 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 financial losses caused by the use of the vehicle in accordance with the following provisions if the vehicle is used on public roads or squares (§ 1 of the Road Traffic Act). (cf. §1, PflVG)
obliged to take out liability insurance, also known as motor vehicle insurance. This also applies to novice drivers. This is due to the high costs that can be incurred in the event of an accident with a motor vehicle.
Accordingly, you will be liable to prosecution if you drive without motor third party liability insurance or with a car that is not roadworthy. If the insurance expires, you must deregister your vehicle at the registration office and may no longer drive it.
The proof of insurance, which you already need when registering your vehicle, serves as proof of liability insurance.
The motor third party liability insurance compensates damages of your accident opponent, if you have caused the accident yourself. Then it's called strict liability.
However, many road traffic accidents are not attributable to the driver's fault, e.g. if a wheel cap comes loose and damages another vehicle. However, injured parties and injured parties are still entitled to compensation from the perpetrator. Then it's called strict liability. The injured party should be financially placed as if he had not had an accident at all.
If you increase the risk of causing damage through your behaviour, the liability insurance can demand recourse up to 5000 euros.
Examples of such behaviour are:
- Driving under the influence of alcohol or drugs
- Driving without a valid driving licence
- Conscious driving with an unsafe vehicle
- hit and run
- Unauthorised use of a vehicle (e.g. theft)
- insurance fraud