Car insurance for new drivers who are students costs more than for experienced drivers, because insurers assess the accident risk as higher in the first years. This guide explains which rules apply, which factors determine the premium and how you can keep costs under control when you take out a policy.
Short answer: Every vehicle keeper needs motor third-party liability insurance (Kfz-Haftpflichtversicherung), as set out in § 1 of the Compulsory Insurance Act (Pflichtversicherungsgesetz, PflVG). The probation period for new drivers lasts two years under § 2a of the Road Traffic Act (Straßenverkehrsgesetz, StVG). During this time premiums are often higher, because the tariff does not yet know your claims history. Last updated: October 2026, offers and tariffs change frequently.
The most important points at a glance
- Motor third-party liability insurance is compulsory for vehicle keepers.
- The probation period for new drivers lasts two years under § 2a StVG.
- The premium depends mainly on the vehicle type class (Typklasse), the no-claims class (Schadenfreiheitsklasse), your location and your annual mileage.
- A second car, a family policy or who is registered as keeper can affect the premium.
- It is worth comparing tariffs before you take out a policy, and again after some time.
Why are premiums higher for new drivers?
Insurers assess risk on the basis of statistical experience. New drivers have statistically more accidents than experienced drivers in their first years. The tariff also has no claims history for you yet, so the no-claims class usually starts at an unfavourable level. Each claim-free year improves your classification.
The vehicle matters too. The vehicle type class determines how expensive a claim is relative to the risk. A small used car with a low classification can therefore be much cheaper than a new car.
| Factor | Why it matters | What you can do |
|---|---|---|
| Vehicle type class | Determines the costs of liability and comprehensive cover | Compare the classification before you buy |
| No-claims class | Usually starts unfavourably for new drivers and falls with each claim-free year | Document claim-free years, for example with your previous policy |
| Location | Regional claim frequency affects the tariff | Check the tariff again when you move |
| Annual mileage | More kilometres driven increase the risk | State a realistic annual mileage |
| Keeper and driver | Who mainly drives the car can affect the classification | Give accurate and complete information |
The list shows the most common levers. In individual cases other criteria can apply, such as the deductible or the scope of comprehensive cover.
How long does the probation period last, and what does it mean for the premium?
The probation period for new drivers lasts two years under § 2a (1) of the Road Traffic Act (Straßenverkehrsgesetz, StVG). It begins when the driving licence is granted. During this time, stricter rules apply in road traffic, for example for violations. For insurance, this often means that the tariff looks more closely at claims.
It is important that the probation period does not end the premium surcharge automatically. Only a claim-free record and a more favourable classification reduce costs over time. Ask your insurer how your tariff develops after the probation period ends.
How do you work out the costs during your studies?
Insurance is a fixed cost that falls due every month. If you plan it into your budget, you avoid unpleasant surprises. A simple calculation helps: divide the annual premium by twelve and compare the monthly amount with your total budget.
Assumption: the annual premium for the tariff is 600 euros. That makes the insurance 50 euros a month. With a monthly budget of 800 euros, this is just over six percent. What this means for you depends on your other expenses.
- Note the annual premium of the tariff and divide it by twelve.
- Compare the monthly amount with your monthly budget.
- Check whether you can lower the tariff with a deductible or a second-car rule.
- Plan a reserve for repairs and for the deductible.
Which tariffs and offers should you compare?
Compare not only the price but also the scope of cover. Motor third-party liability insurance is compulsory, while comprehensive cover (Vollkasko) and partial cover (Teilkasko) are optional. Check whether it is worth insuring a car of high value at all, and weigh that against the costs.
Look out for student discounts and special conditions, but read the small print. Many offers are tied to conditions, such as proof of enrolment. For more on this, read the guide on student discounts on insurance.
What happens when you no longer need the car?
During your studies, your use of the car often changes. If you drive less after your studies or move away from the area, review the tariff. A switch is usually possible at the end of the insurance year, but the exact notice period is set out in the contract.
How do you prove claim-free years?
Claim-free years are a lever that many new drivers underestimate. They are usually proven with the previous policy. If you grew up in a household with a car that was insured with an insurer, part of the classification may be transferred. What counts are the certificates and the information the insurer requires.
Get the certificate of claim-free years early, ideally before you cancel your existing contract. Without proof, the tariff usually starts again at an unfavourable level. Keep the letters, even if you do not need them straight away.
Which details must you state honestly?
On the application you must state the annual mileage, the driver and the intended use of the vehicle correctly. Incorrect or incomplete information can lead to reductions in a claim or to termination of the contract. This applies even if you forgot something. Check the details again before you sign.
If you mainly drive the car yourself, state that. If you use it only rarely, you can also say so, but make sure the information matches your actual use.
How large a reserve should you plan for?
Even with good insurance, some costs remain yours. These include deductibles in the event of a claim, maintenance and the repair of minor damage that falls below the threshold for a claim. A fixed reserve helps ensure that a claim does not blow your monthly budget.
Assumption: you plan with a deductible of 300 euros. A reserve of 300 euros is then enough to cover a typical claim. Whether this is enough for you depends on your tariff and your driving.
Which levers do you have in everyday life?
Besides the tariff, your habits also affect costs. If you drive less in the evenings, cover fewer kilometres and look after the vehicle carefully, you reduce the risk. Some tariffs offer discounts for low mileage or for drivers with a claim-free record.
Frequently asked questions
Do I need car insurance if I only drive occasionally?
If you want to register a vehicle as keeper, liability insurance is compulsory. If you only drive someone else’s vehicle as a driver, you are covered through the keeper. Clarify the position before you drive.
Can I take over my parents’ no-claims class?
That is possible under certain conditions, for example if a family member drives the vehicle under a second-car arrangement. The rules differ between insurers. Ask specifically before you sign a contract.
Is comprehensive cover worthwhile for new drivers?
That depends on the value of the vehicle and on your reserve. Comprehensive cover makes sense for new or expensive used cars. For older vehicles of low value, it is often less worthwhile.
When can I switch tariffs?
The notice periods are set out in the contract. Many contracts end at the end of the calendar year. Check the deadlines in good time so that you do not renew by accident.
Your next steps
- Find out the vehicle type class of the car you want before you buy it.
- Ask several insurers for the classification and the premium.
- Check whether a second-car or family rule applies to you.
- Set the monthly premium in your budget and review the tariff every year.
Related guides
- Legal expenses insurance for students: tenancy, employment and exam law
- Student discounts on insurance: what is really worth it
- Getting around cheaply as a student: semester ticket and Germany ticket
- Budget planning for students: a monthly budget in three steps
Sources: § 1 Compulsory Insurance Act (PflVG), gesetze-im-internet.de (last updated October 2026); § 2a Road Traffic Act (StVG), gesetze-im-internet.de (last updated October 2026).
Last updated: October 2026. This guide is general information, not individual advice.
