Driver for Individuals: Your Comprehensive Guide to Insurance and Liability for Private Journeys
6 Jun 2025
Katrin Straub
Managing Director at nextsure
Are you lending your car to friends or family? A common situation that can quickly lead to unexpected costs of several thousand euros without the right knowledge. Find out here how to optimally protect yourself and other drivers as private individuals and what pitfalls to watch out for in insurance law.
The topic in brief and concise terms
Report each driver for private individuals to your insurance company to avoid penalties of up to an annual premium; a temporary report often costs only a few euros per day.
Always check the driver's valid driving licence, as driving without a licence is a criminal offence and can lead to the loss of comprehensive insurance cover as well as recourse claims of up to €5,000.
A written loan agreement that regulates liability and cost coverage in case of damage or fines provides important protection for both the owner and the driver.
Quick overview: Key facts on the topic of drivers for private individuals
When handing over your vehicle to a private driver, several points are crucial for your financial security. Without a valid driving licence, the driver faces severe penalties and the loss of insurance coverage. The car owner's liability insurance generally covers external drivers, but there are important exceptions and possible contractual penalties amounting to an annual premium. Fully comprehensive insurance covers damages to your own car, but a no-claims discount downgrade is likely. Here are the main aspects in brief:
Check insurance cover: Ensure that the private driver is included in the circle of drivers on your policy or register them temporarily; this can often be done for a few euros per day.
Verify driving licence: Always check the driver's licence validity; driving without it is an offence punishable by up to one year in prison.
Clarify liability: In principle, the vehicle owner is liable, but the driver can also be held accountable for negligence; a private loan agreement provides clarity here and can help avoid costs of over 2,500 euros with excess.
Consider additional protection: Driver's protection insurance offers the driver financial security in the event of self-inflicted accidents, which ordinary car liability insurance does not cover.
These initial points already highlight the complexity involved. Below, we delve deeper into insurance practice.
Navigating the insurance jungle: Who pays for damage caused by private drivers?
The Motor Vehicle Liability Insurance: Basic Protection with Pitfalls
The motor vehicle liability insurance is the legally required minimum coverage and covers damages caused to third parties, often up to a sum of 100 million Euros. If a driver causes an accident for individuals with your car, your liability insurance generally covers it. However, it is important: If the driver is not listed in the driver's circle of your policy, the insurer may demand a contractual penalty, often an additional annual premium, and a retroactive premium payment. A practical example: Your friend causes damage worth 5,000 Euros; the liability pays this to the opponent but may demand a 500 Euros contractual penalty from you. While the coverage amounts are high, the terms and conditions of the contract are crucial.
Comprehensive Insurance: Optimising Protection for Your Own Vehicle
While liability insurance regulates third-party damages, a comprehensive insurance is responsible for damages to your own car. A comprehensive insurance also covers self-inflicted damages or vandalism if a driver was at the wheel for private purposes. The partial comprehensive insurance typically covers theft or glass break, but not self-inflicted accidents. Please note: In the event of a claim, your no-claims discount class is usually downgraded, increasing your premium for the coming years. An agreed deductible, for example, 300 Euros, must be borne by you or the driver. Ideally, clarify this cost assumption in advance.
The Registered Circle of Drivers: The Key Element of Insurance Coverage
The circle of drivers defined in your insurance policy is crucial. If a driver for private purposes is not registered, you risk not only contractual penalties of up to an annual premium in the event of an accident but also retroactive premium payments. Many insurers offer flexible solutions: You can permanently expand the circle of drivers, which is sensible if, for example, your child drives regularly. For occasional trips, such as a holiday trip over a week, a temporary extension is often possible for a few Euros per day. Our Expert Tip: A quick notification to your insurer in advance can save you thousands of Euros in trouble. The exact liability regulations are just as important and will be discussed in the next section.
Minimising Liability Risks: Establish Clear Responsibilities for Drivers and Owners
Owner Liability vs. Driver Liability: Who Bears the Responsibility?
Under German traffic law, owner liability generally applies according to Paragraph 7 of the Road Traffic Act (StVG). This means that you, as the vehicle owner, can be held liable for damages caused with your vehicle, even if a private individual was driving. In addition, there is driver liability according to Paragraph 18 StVG: If the driver causes the accident through fault, they are also liable. This becomes particularly relevant if the damage exceeds your insurance coverage limit or if the insurance company makes claims for compensation. A clear private liability insurance of the driver can potentially apply here but generally does not cover damage to the borrowed vehicle itself.
Special Case of Driving Without a Licence: Severe Consequences for All Involved
If you let a private driver use your vehicle without a valid driving licence, serious consequences may ensue. Driving without a licence is a criminal offence and can be punished with fines or imprisonment of up to one year—for both the driver and the owner who allowed the drive. Regarding insurance law, the motor vehicle liability insurance can demand reimbursement of up to 5,000 euros. The comprehensive insurance can even completely refuse to provide benefits. A verdict from the district court of Bad Schwalbach (Case No.: 3 C 120/22 (2)) confirmed a reimbursement claim of over 4,000 euros against a driver without a licence. Therefore, always check the driving licence before lending your car.
Our Expert Tip: The Private Lending Agreement as an Indispensable Safeguard
A written lending agreement is a simple but effective means to avoid many issues when a private driver uses your car. It should at least cover the following points:
Names and addresses of lender and borrower.
Exact description of the vehicle (registration number, model).
Duration of the loan (from date/time to date/time).
Confirmation by the borrower of a valid driving licence (record number and date of issue).
Agreement on liability for damage to the vehicle (comprehensive insurance excess, repair costs in the absence of comprehensive insurance).
Responsibility for fines and misdemeanours assumed by the borrower.
Limit on kilometres, if desired (e.g., maximum 500 kilometres).
Condition of the vehicle upon handover (including refuelling and any pre-existing damage).
You can often find a template for this with automobile clubs. This clear agreement protects both parties and ensures that the joy of driving is not marred by financial disputes. For even more comprehensive protection, there are special insurance modules available.
Expert knowledge for optimal protection: Special insurances and legal details for private drivers
The Driver Protection Insurance: An Often Underrated but Important Addition
The motor vehicle liability insurance covers damages caused to others. However, if the driver gets injured in an accident they caused or contributed to, they end up with nothing. This is precisely where the driver protection insurance fills the gap. It covers costs such as loss of earnings, compensation for pain and suffering, or modifications for disabled access, up to an insurance sum often reaching 15 million euros. This protection is particularly valuable as personal injuries can quickly lead to financially ruinous costs. The annual premium for this crucial component is often only around 20 euros.
Additional Driver Insurance and Third-Party Protection: Flexible Coverage as Needed
If a driver for private individuals only occasionally uses your car, permanently including them in your main policy's circle of drivers is often unnecessary or too costly. In this case, special additional driver insurances or third-party protection are offered. These policies can often be taken out on a day-to-day or week-by-week basis, sometimes from as low as five euros per day. They usually cover financial consequences if an undeclared driver causes an accident, such as contractual penalties or assuming the deductible. Check the conditions carefully, as the scope of coverage can vary. A traffic legal protection insurance may also be useful to be prepared for disputes following an accident.
Current Judgments and Laws: Understanding the Legal Dimension
Insurance law is constantly evolving. An important ruling by the Bad Schwalbach District Court (Case No.: 3 C 120/22 (2)) highlights the consequences of driving without a license: The insurance successfully reclaimed over 4,000 euros from the driver. The basis for many regulations is the Mandatory Insurance Act (PflVG), which requires every vehicle owner in Germany to take out motor vehicle liability insurance. Paragraph 21 of the Road Traffic Act (StVG) makes driving without a license a punishable offense. Our expert tip: Stay informed about current legal rulings to avoid pitfalls. Good preparation is key to handing over your vehicle worry-free.
More useful links
Wikipedia offers a comprehensive overview of motor vehicle liability insurance.
Gesetze im Internet provides the full text of the Road Traffic Act (StVG), which contains fundamental regulations for road traffic in Germany.
Gesetze im Internet provides access to the Civil Code (BGB), which establishes important civil law foundations, including liability issues.
Kraftfahrt-Bundesamt (KBA) provides official statistics on the vehicle population in Germany.
FAQ
Welche Versicherung zahlt, wenn ein Freund mein Auto fährt und einen Schaden verursacht?
Ihre Kfz-Haftpflichtversicherung kommt für Schäden auf, die Ihr Freund Dritten zufügt. Schäden an Ihrem eigenen Auto deckt Ihre Vollkaskoversicherung, sofern vorhanden. Beachten Sie mögliche Vertragsstrafen, wenn der Freund nicht als Fahrer gemeldet war, und eine mögliche Rückstufung Ihrer Schadenfreiheitsklasse.
Muss ich jeden Fahrer meiner Versicherung melden?
Ja, grundsätzlich sollten alle regelmäßigen Fahrer im Versicherungsvertrag eingetragen sein. Für gelegentliche Fahrten können Sie Fahrer temporär anmelden, um Probleme wie Vertragsstrafen (oft eine Jahresprämie) oder Leistungskürzungen zu vermeiden.
Was kostet es, einen zusätzlichen Fahrer in die Versicherung aufzunehmen?
Die Kosten variieren. Eine dauerhafte Aufnahme, besonders von Fahranfängern, kann den Beitrag erhöhen. Eine temporäre Mitversicherung für wenige Tage kostet oft nur einen geringen Betrag, manchmal ab fünf Euro pro Tag.
Was ist eine Fahrerschutzversicherung und warum ist sie sinnvoll für Fahrer für Privatpersonen?
Die Fahrerschutzversicherung deckt Personenschäden des Fahrers (z.B. Verdienstausfall, Schmerzensgeld bis oft 15 Millionen Euro) bei einem selbst- oder mitverschuldeten Unfall. Dies ist wichtig, da die Kfz-Haftpflicht hier nicht leistet.
Welche rechtlichen Folgen hat das Fahren ohne gültige Fahrerlaubnis?
Fahren ohne Fahrerlaubnis ist eine Straftat (Paragraph 21 StVG) und kann mit Geldstrafe oder bis zu einem Jahr Freiheitsstrafe geahndet werden. Versicherungsrechtlich droht Regress bis 5.000 Euro und der Verlust des Kaskoschutzes.
