Car Insurance Self-Damage Cover: How to optimally protect your other assets
22 Jun 2025
9
Minutes
Katrin Straub
CEO at nextsure
A moment of inattention, and it has already happened: You have damaged your second car or your own garage with your car. Without the appropriate motor insurance for own damage coverage, this can quickly cost several thousand euros, as normal liability does not cover this.
The topic in brief and concise terms
Motor vehicle insurance self-damage coverage is an addition to motor liability insurance and covers damages caused by your car to your other property (e.g. second car, garage), often up to one hundred thousand euros.
Typical cases include minor collisions with your second car or the garage door; the costs for these can quickly amount to several thousand euros.
Pay attention to coverage amounts (often up to one hundred thousand euros), deductibles (usually five hundred euros), and exclusions in the policy conditions (AKB).
Understanding Self-Damage Coverage: More Than Just Liability
The own damage coverage is a special component of your motor vehicle liability insurance. It applies if you cause damage to your other own assets with your insured vehicle. This applies, for example, to a second car you own or buildings like your garage, where coverage amounts of up to one hundred thousand euros often apply. The standard motor vehicle liability insurance only covers third-party damages, while the comprehensive insurance is responsible for the vehicle causing the damage itself. The own damage coverage thus fills an important gap for damages to your other property caused by your own vehicle, and often for a small additional premium of less than fifty euros annually. This protection is particularly relevant as such damages can quickly amount to several thousand euros. The exact conditions, such as a possible deductible of typically five hundred euros, vary depending on the insurer. Therefore, it is important to carefully review the details of your contract.
Practical Examples: When Self-Damage Coverage Becomes Indispensable
Imagine you are manoeuvring with your first car and damage your second car parked on the same property. Such damage can quickly lead to costs of two thousand euros or more. Without self-damage coverage, you would have to bear these costs yourself, as neither the standard liability nor the comprehensive insurance of the causing vehicle covers the damage to the second car. Another common scenario is damaging your own garage door or a fence post while parking or leaving, which can also lead to repairs costing over five hundred euros. The self-damage coverage covers these repair costs of the damaged property, minus any potential excess. This protection is often essential for owners of multiple vehicles or properties with private traffic. Some policies even extend cover to movable items like bicycles that are damaged on the property. The exact cover depends on your individual contract.
Here are typical situations where the self-damage coverage applies:
Damage to a second vehicle registered to you by your first vehicle (repair costs often over fifteen hundred euros).
Hitting your own garage door or house wall (damage often between five hundred and three thousand euros).
Damage to a bicycle or garden fence on the property caused by your car.
Damage caused by a co-insured driver (e.g., a spouse) with your vehicle to your other property.
These examples show how quickly a financial shortfall can arise without this additional protection.
Costs and Conditions: What You Need to Know About First-Party Coverage
The cost of self-damage coverage is usually low compared to potential damage and often starts at under fifty euros per year. It is generally much cheaper than a separate comprehensive insurance for each individual item. The coverage amount for self-damage is often capped at a maximum amount, for example, one hundred thousand euros per claim or per year. Additionally, an excess is often agreed upon, which typically ranges between two hundred and fifty and five hundred euros. Carefully check the amount of coverage and the excess before entering into a contract. Many insurers offer self-damage coverage as part of comfort or premium packages. Comparing different car insurance rates is worthwhile to find the best value for your needs. Pay attention to whether the coverage also applies on your own property or only off-site. The exact conditions can vary significantly between providers.
Keep an eye on the legal fundamentals and current developments
The conditions for motor vehicle insurance in Germany are regulated by the Insurance Contract Act (VVG) and the Compulsory Insurance Act (PflVG). However, the specific benefits of personal damage coverage are determined by the General Conditions for MotorVehicle Insurance (AKB) of the respective provider. These conditions may contain details on exclusions, coverage scope, and policyholder obligations that exceed the statutory minimum requirements. It is crucial to study the individual contract terms carefully, as they can vary from one insurer to another. For example, the definition of what is considered "other property" may differ. Recent court rulings can also impact the interpretation of insurance clauses, so it is advisable to seek expert advice if in doubt. An annual review of your insurance coverage ensures it still suits your current life situation. Also, note cancellation periods, usually one month before the contract expires.
Target Audience Analysis: Who benefits most from self-damage coverage?
The Kfz insurance own damage coverage is particularly worthwhile for individuals who own multiple vehicles, all registered to the same owner. Here, the risk of damaging another of your own vehicles with one is statistically higher and can quickly incur costs of over two thousand euros. Homeowners with a garage, carport, or narrow driveway exits also benefit, as maneuvering in these areas can quickly cause damage to buildings or permanent installations such as fences, often costing more than five hundred euros to repair. Families with multiple drivers using the same vehicle and possibly having access to other vehicles in the household should also consider this additional protection. The low additional costs, often only three to five euros per month, are justified when compared to the potential financial damage. Ultimately, it is an individual assessment: What is your personal risk and how much would such damage cost you without insurance? A careful analysis of your situation helps in making the decision.
The following groups should consider own damage coverage:
Owners of two or more vehicles.
Homeowners with their own garage or narrow driveways (risk of damage increased by up to thirty percent).
Individuals who need to maneuver frequently on their own property.
Families with multiple drivers who have access to the vehicles.
A consultation can help precisely assess individual needs.
Expert tip: Find the optimal protection for your property
To ensure appropriate protection through a motor vehicle insurance own damage cover, you should first analyse your individual needs. Consider what personal possessions might be at risk from your vehicles and how significant a potential loss could be; these values often exceed one thousand euros. Then compare the offerings of different insurers, paying attention not only to the price but also to details such as cover limits (at least fifty thousand euros recommended), deductibles, and exclusions. Carefully read the small print in the insurance terms and conditions (AKB). Sometimes, own damage cover is already included in more comprehensive policies without much additional cost. A comprehensive vehicle liability insurance is the foundation, with own damage cover being a worthwhile addition. At nextsure, we are happy to assist you in optimising your insurance coverage and finding a tailor-made solution that can save you up to several tens of thousands of euros in the event of a loss. This way, you can rest assured that even mishaps with your own vehicle and personal property can be financially mitigated.
More useful links
Wikipedia provides a comprehensive overview of car insurance in Germany.
The Federal Statistical Office (Destatis) offers an overview page with statistics on road traffic accidents in Germany.
The Federal Statistical Office (Destatis) provides a list of tables with detailed statistics on road traffic accidents.
The German Insurance Association (GDV) publishes statistics on road traffic accidents from the perspective of the German insurance industry.
The German Insurance Association (GDV) provides the General Terms and Conditions for Motor Insurance (AKB 2015) as a PDF.
The ADAC offers information on comprehensive car insurance.
On Gesetze im Internet, you will find the Act on Compulsory Insurance for Motor Vehicle Owners (PflVG).
FAQ
What is the difference between personal accident coverage and comprehensive insurance?
The coverage for third-party damage (as part of motor vehicle liability insurance) covers damages that you cause to your *other* property (e.g. second car, garage) with your vehicle. The comprehensive insurance, on the other hand, covers damages to the *causing* vehicle itself, even if you are at fault for the accident.
What damages are typically not covered by the self-damage insurance?
Damage to the vehicle causing the incident itself is not covered. Damage caused intentionally or due to wear and tear is typically excluded. Details are governed by the respective insurance conditions (AKB).
What is the coverage amount for self-damage insurance?
The coverage amount is often limited to a specific sum, for example, one hundred thousand euros per claim or insurance year. It's important to check this in your contract.
Can I also take out own damage cover for my only car?
The own damage coverage is primarily meant to cover damage to additional property. If you own only one car and, for example, damage your house wall with it, the own damage coverage may apply. Damage to the car itself would be a case for comprehensive insurance.
Does a claim under own damage coverage affect my no-claims class?
Yes, since own-damage coverage is usually a component of motor liability insurance, a claim settled through it can lead to a downgrade of the no-claims bonus in liability insurance. This depends on your insurer's terms.
Where can I find the specific terms for my own damage coverage?
The exact terms, benefits, and exclusions can be found in the General Conditions of Motor Insurance (AKB) of your insurance contract as well as in the policy document.
