How do I insure a leased car in Germany properly? You take out the insurance yourself: liability is required by law, and almost every lease also demands comprehensive cover (Vollkasko). Add GAP cover so a write-off does not leave you owing thousands. One insurer's published example for a Golf shows about 490 to 1,200 euros a year with comprehensive cover, depending on the tariff.
Published premiums and amounts for insuring a leased car in Germany.
Example
Typical range
Golf, 12,000 km, no-claims class 4, lease up to 36 months, with Vollkasko, one insurer's example
486 to 1,202 euros a year
GAP cover depending on car value and term
about 50 to 150 euros a year, free with some insurers
GAP via the leasing company, added to the rate
about 15 to 35 euros a month
Separate GAP policy for 3 years
one off about 250 to 500 euros
Example gap after a write-off
5,300 euros
As of October 2026, from guides by insurers and leasing portals.
The premium range applies only to the example profile.
Statements on VAT are based on case law that is not uniform.
The figures in the worked example are a guide value from quoting practice.
We check whether a tariff meets the requirements of your lease.
Worked example
Leased car stolen after 10 months
Compact new car, 36 month lease, Vollkasko with a 500 euro deductible. The car is stolen and never found.
Settlement amount claimed by the leasing company
about 28,000 euros
Replacement value paid by Vollkasko
about 23,000 euros
Deductible
500 euros
Gap without GAP cover
about 5,500 euros
Gap with GAP cover
usually only the deductible
Without GAP you pay about 5,500 euros for a car you no longer have. With GAP usually only the deductible remains. Calculation with guide values.
What a German lease requires
During the lease the car belongs to the leasing company, but in most cases you have to insure it. Third party liability (Kfz-Haftpflicht) is compulsory for every registered car in Germany. Comprehensive cover (Vollkasko) is not a legal duty, yet almost every lease contract makes it a condition for the full term.
Read the insurance clause of your lease before you compare quotes. It often sets the maximum deductible (Selbstbeteiligung), may require repairs at a brand workshop, and may ask for a security certificate (Sicherungsschein). With that certificate your insurer confirms to the leasing company that payouts for the car can go to it.
Cover
Required for a leased car?
What to check
Liability (Kfz-Haftpflicht)
yes, by law
high cover limit, cover for rental cars abroad
Comprehensive (Vollkasko)
almost always, by the lease
deductible within the lease limit
GAP cover
rarely required, strongly advisable
included in Vollkasko or as an add on
New price compensation (Neupreisentschädigung)
no
helps in the first months after registration
Workshop tie in (Werkstattbindung)
no
only if the lease does not demand brand workshops
Breakdown cover (Schutzbrief)
no
roadside help, often for a few euros a year
Why GAP cover matters for a leased car
After a write-off or theft, Vollkasko pays the replacement value (Wiederbeschaffungswert), meaning what a comparable used car costs. The leasing company, however, claims the settlement amount (Ablösewert): the open instalments plus the calculated residual value. In the first year this is usually clearly higher.
One insurer's example shows a replacement value of 22,500 euros against a claim of 27,800 euros, a gap of 5,300 euros. GAP cover pays that difference. Some insurers include it in Vollkasko at no extra cost, otherwise it costs around 50 to 150 euros a year depending on car value and term.
What insuring a leased car costs
Liability costs the same whether you lease or buy. Comprehensive cover is the expensive part, because leased cars are usually new and you cannot simply have small damage fixed cheaply on your own.
In one published example for a Golf with 12,000 kilometres a year, no-claims class 4 and a 36 month lease, premiums with Vollkasko ranged from 486 to 1,202 euros a year. That spread shows how much comparing like for like cover is worth.
The VAT gap after a write-off
The leasing company can usually reclaim VAT (Vorsteuer). Under German case law the Vollkasko payout for a leased car is therefore often based on the net amount. If you lease privately, part of the VAT can end up with you, depending on your lease and the court.
Ask before signing whether the GAP cover also includes VAT. Not every tariff does, and courts do not decide this uniformly.
When less cover is enough
If insurance is already part of the lease rate, you do not need to buy anything extra. This must be written explicitly in the lease contract, otherwise you are not covered.
If you made a large down payment or the lease only runs a few more months, the gap to the settlement amount is often small. A separate GAP policy is then less important, and a GAP add on within Vollkasko is usually enough.
Step by step
Read the insurance clause in the lease: Vollkasko, maximum deductible, workshop, security certificate.
Check whether insurance is already included in the lease rate.
Compare quotes with Vollkasko and GAP cover on the same terms.
Give the eVB number (electronic insurance confirmation) to the dealer for registration.
Have the insurer send the security certificate to the leasing company.
Checklist
Vollkasko for the whole lease term
Deductible not higher than the lease allows
GAP cover included, ideally including VAT
Workshop tie in matches the lease requirements
Security certificate received by the leasing company
Common mistakes
Taking only liability cover although the lease demands Vollkasko
Choosing a higher deductible than the lease allows
Skipping GAP cover to save a few euros
Choosing a workshop tie in although the lease demands brand workshops
Leaving small damage unrepaired before returning the car and paying a lot for it
Questions and answers
Frequently asked
Does a leased car in Germany need comprehensive cover?
Not by law, but almost every lease requires it.
Without Vollkasko you breach the contract.
Is insurance for a leased car more expensive?
Liability is not.
Vollkasko often is, because the car is new and repairs must be done in a workshop.
Do I need GAP insurance?
For almost every leased car, yes, especially in the first years.
It closes the gap between the insurance payout and the settlement amount.
Can I use my no-claims class from abroad?
Some German insurers accept proof of claims free years from abroad, others do not.
Ask before you sign, it can change the premium a lot.
Who receives the money after a write-off?
Usually the leasing company, because it owns the car.
That is what the security certificate is for.
Does insurance pay for damage found when I return the car?
No, wear and small damage at return are your cost.
Real accident damage should be claimed through Vollkasko beforehand.
