Foreign accident protection: Your financial shield against accidents abroad caused by others
1 Jun 2025
Katrin Straub
Managing Director at nextsure
An unforseen accident abroad can quickly become a financial burden of several thousand euros. Discover how international damage protection can shield you from these costs and significantly simplify the entire claims process.
The topic in brief and concise terms
Foreign damage protection ensures that in the event of an unprovoked motor vehicle accident abroad, claims are settled according to German law, covering financial gaps left by often lower foreign standards.
For a small annual fee, often under thirty euros, it provides comprehensive protection against high costs and simplifies processing.
It is valid in the EU and many other European countries, but not for self-inflicted accidents or damages in Germany.
Understanding Foreign Damage Protection: Key Facts for Your Safety
The foreign claims protection is an additional component to your existing motor vehicle liability insurance. It applies if you are involved in a traffic accident abroad through no fault of your own. The core service is that your damage is settled as if the foreign accident culprit were insured with your German insurance – according to German law and standards. This is a significant advantage, as the statutory minimum cover sums for motor vehicle liability insurance in other European countries are often significantly lower than in Germany; for example, in some countries they amount to only one million euros for property damage. The foreign claims protection closes this gap and protects you from financial disadvantages that can quickly amount to several thousand euros. It is important to know that this protection does not apply to self-inflicted accidents or accidents within Germany. The cover usually includes the countries of the European Union as well as other European countries such as Switzerland or Norway, often over 35 countries. This protection provides significant relief in claims handling and gives you financial security while travelling.
Reap the Practical Benefits: How Foreign Damage Protection Works for You
Mastering Different Levels of Compensation: An Example Calculation
Imagine you are involved in a no-fault accident in Italy where your vehicle is severely damaged; the repair costs amount to 6,000 euros. The Italian insurance of the other party may only reimburse 3,500 euros due to local rates and lower coverage amounts and not cover any rental car costs. With foreign claims protection, your German insurance settles the claim according to German standards and covers the full 6,000 euros for repair costs as well as rental car costs for up to fourteen days. Many drivers underestimate the potential difference of over forty percent in compensation without this protection. Another advantage is the straightforward handling directly with your German insurer, avoiding language barriers and lengthy correspondence with foreign entities. This way, a nuisance doesn't turn into a financial trap.
Securing Personal Injuries Abroad: A Case Study
A no-fault accident in Eastern Europe results in injuries to a passenger, leading to medical treatment costs of 15,000 euros and claims for pain and suffering. Without foreign claims protection, you would have to deal with the foreign insurance, often associated with lower pain and suffering rates and complicated procedures. The foreign claims protection ensures that your claims are enforced under German law, generally leading to higher compensation, for example, 8,000 euros for pain and suffering instead of perhaps just 3,000 euros under local law. Your foreign health insurance covers medical emergencies, but the foreign claims protection takes care of vehicle-related and liability issues according to German standards. Coverage of legal fees according to German fee regulations can also be an advantage, as confirmed by judgements of German courts. This highlights the comprehensive protection in case of personal injuries.
Cost-Benefit Analysis: Low Contribution, Great Security
The costs for foreign claims protection are surprisingly low, often only between ten and thirty euros per year. Some insurers even offer this important module without additional costs in their premium motor liability insurance policies. Considering the potential costs of an accident abroad – which can quickly reach several tens of thousands of euros in case of personal injuries – this contribution is minimal. The benefits include:
Coverage of repair costs according to German standards.
Reimbursement of rental car costs, often for up to fourteen days.
Compensation for the depreciation of your vehicle.
Regulation of claims for pain and suffering according to German law.
No downgrade of your no-claims bonus class.
Direct settlement with your German insurer.
The low annual costs of, for example, 15 euros are disproportionate to the financial risk of an uncovered loss of 5,000 euros or more. This protection is thus a very sensible investment for anyone travelling abroad by car.
Deepening Expert Knowledge: Legal Aspects and Distinctions of Foreign Damage Protection
Understanding Legal Frameworks and Important Documents
Although foreign damage protection is a contractual additional service of your insurance, it operates within the context of international and national regulations. The Green Card serves as an internationally recognised proof of your motor liability insurance and is still mandatory in some countries outside the EU, such as Albania or Turkey. However, it only confirms the basic cover according to the rules of the host country, not the extended benefits of foreign damage protection. The European Accident Report is a standardised form that facilitates the recording of an accident abroad and should be completed by all parties involved; it is available in many languages and helps avoid misunderstandings. Carrying these two documents can significantly speed up the processing of a claim. The German Compulsory Insurance Act (PflVG) and the Foreign Vehicle Compulsory Insurance Act (AuslPflVG) regulate basic insurance obligations. However, foreign damage protection goes beyond that by closing the qualitative gap in compensation. Settlement under German law, as provided by foreign damage protection, can, for example, include the reimbursement of expert fees or legal fees according to German rates, which is often not the case without this protection. Thus, you are legally in a better position.
Understanding Coverage Limits: When Foreign Damage Protection Does Not Pay
Despite its many advantages, there are situations where foreign damage protection does not provide cover. It is important to know these limits:
Self-inflicted accidents: For these, your own fully comprehensive insurance is responsible, if available. Foreign damage protection only covers non-fault damages.
Accidents in Germany: The protection is explicitly designed for damages abroad.
Theft of the vehicle: Here, your partial comprehensive insurance applies, not foreign damage protection.
Exceeding the maximum duration of stay: Many policies limit cover to a certain travel duration, often twelve weeks.
Damage to towed trailers: This can vary depending on the contract and should be checked; sometimes separate cover is required.
Use on private roads: Some contracts exclude damages occurring on non-public roads.
Therefore, check the exact conditions of your contract before travelling to avoid misunderstandings. This ensures you receive the expected protection in an emergency.
Our Expert Tip: Who Particularly Benefits from Foreign Damage Protection
Taking out foreign damage protection is generally recommended for any motorist travelling abroad with their own vehicle, even if it's just once a year for a holiday. The low costs of often less than twenty euros annually are disproportionate to the potential financial damage and hassle you avoid. The protection is particularly sensible for the following groups:
Frequent drivers in the European abroad.
Travellers to countries known for low maximum insurance sums or complex legal systems (e.g. some southern or eastern European countries).
Owners of motorhomes or expensive vehicles, where damages can quickly lead to high costs.
Families who rely on their vehicle during holidays and need a quick replacement in case of breakdown.
Our Expert Tip: Check before taking out insurance whether foreign damage protection is already included in your current car liability tariff or can be added as an inexpensive additional module. A quick check can save you thousands of euros in the event of a claim. Also, consider comprehensive travel insurance for other risks.
Understanding the Distinction from Similar Insurances
There are some insurances that sound similar but cover areas other than foreign damage protection. A clear distinction is important: The Mallorca Policy is an extension of car liability for rental cars abroad and increases their often insufficient liability coverage to German levels; it does not apply to your own vehicle. The foreign car insurance cover letter offers services such as roadside assistance, vehicle repatriation or medical repatriation, but does not provide claims settlement under German law in a non-fault accident. The foreign health insurance is essential for medical costs abroad, but has nothing to do with damages to or caused by the vehicle. Foreign damage protection is the specific solution to be treated as though an accident in your own car abroad had happened in Germany and your opponent was insured here. This clear distinction helps you choose the right protection for your needs.
Request a personal risk analysis now: Have your insurance situation checked free of charge and receive specific recommendations for optimisation.
More useful links
ADAC offers detailed information on international accident protection and its benefits.
The Goslar Institute provides valuable guidance on correct behaviour after a traffic accident abroad.
Statista provides an infographic on the death rate on European motorways per 1000 km.
The Federal Statistical Office (Destatis) offers comprehensive international traffic statistics.
The European Parliament visualises EU traffic accident statistics in an infographic.
The Federal Highway Research Institute (BASt) provides international traffic accident data in a PDF document.
You can also find more data on road fatalities in Europe at the Federal Statistical Office (Destatis).
Statista offers additional statistics on road fatalities in Europe.
FAQ
Was ist der Unterschied zwischen Auslandsschadenschutz und Mallorca-Police?
Der Auslandsschadenschutz gilt für Ihr eigenes, in Deutschland zugelassenes Fahrzeug bei unverschuldeten Unfällen im Ausland. Die Mallorca-Police ist eine Zusatzdeckung für Mietwagen im Ausland und erhöht deren Haftpflichtdeckungssumme.
Deckt der Auslandsschadenschutz auch Schäden durch höhere Gewalt ab?
Nein, der Auslandsschadenschutz ist für unverschuldete Verkehrsunfälle mit einem anderen beteiligten Fahrzeug konzipiert. Schäden durch höhere Gewalt (z.B. Sturm, Hagel) werden in der Regel über die Teil- oder Vollkaskoversicherung abgedeckt, sofern vorhanden.
Wie lange darf mein Auslandsaufenthalt maximal dauern, damit der Schutz greift?
Die meisten Versicherer begrenzen die Dauer des Versicherungsschutzes im Ausland, oft auf bis zu zwölf Wochen am Stück. Bei längeren Aufenthalten sollten Sie dies mit Ihrer Versicherung klären.
Muss ich nach einem Unfall im Ausland die Polizei rufen?
Ja, es ist dringend empfohlen, bei jedem Unfall im Ausland die Polizei hinzuzuziehen und einen Unfallbericht aufnehmen zu lassen. Dies erleichtert die spätere Schadenregulierung erheblich.
Hat der Auslandsschadenschutz Auswirkungen auf meine Schadenfreiheitsklasse?
Nein, da es sich um einen unverschuldeten Unfall handelt und die Leistung quasi von der (fiktiven) Versicherung des Unfallgegners erbracht wird, erfolgt keine Rückstufung Ihrer eigenen Schadenfreiheitsklasse.
Was passiert, wenn der Unfallgegner im Ausland nicht versichert ist oder Fahrerflucht begeht?
Auch in solchen Fällen kann der Auslandsschadenschutz greifen und Ihren Schaden nach deutschen Standards regulieren. Die genauen Bedingungen hierzu finden Sie in Ihrem Versicherungsvertrag. Zusätzlich gibt es nationale Entschädigungsfonds, aber der Auslandsschadenschutz vereinfacht die Abwicklung für Sie.
