Who can drive a company car in Germany and are they insured?
In short
Anyone the insurance contract and the company car policy allow can drive a company car, as long as they hold a valid licence. Many German fleet tariffs have no fixed driver group, single policies often do. Damage to others is always insured, but the driver who causes a crash is only covered by driver protection (Fahrerschutz), about EUR 20 to 60 a year. On work trips they are also covered by statutory accident cover.
Published premiums for driver protection and motor liability in Germany, 2026.
Example
Typical range
Driver protection add-on, usual range
about EUR 20 to 60 a year
Driver protection by driver age, sample tariff
about EUR 35 to 64 a year
Average motor liability for a car
about EUR 200 to 400 a year
Guide values as of October 2026 from published examples.
Whether driver protection is already included is stated in your contract;
some premium tariffs include it.
The worked example is a guide value from quoting practice; we obtain the exact quote.
Worked example
Sales manager in Frankfurt, company car with private use, partner drives
Her partner borrows the company car at the weekend and rear ends another car. He is slightly injured, the other car is damaged.
Damage to the car in front
paid by motor liability
Damage to the company car
Vollkasko, deductible as agreed in the company car policy
Injury to the driver, private trip
no statutory accident insurance, only driver protection
Driver protection for this car
about EUR 20 to 60 a year
If the partner is within the driver group and driver protection is included, all three losses are covered. Without driver protection he bears his own injury costs. Calculated with guide values.
Who may drive the company car
Two sets of rules work together: the insurance contract and the company car policy (Dienstwagenregelung). The contract defines the driver group the premium is based on. The company car policy decides who the employer lets drive: only the employee, also a spouse, or all adults in the household.
In many German fleet tariffs the driver group plays no role in the premium, so any authorised driver can take the wheel. A single policy for one company car is different: if it lists only drivers over 25 and the employee hands the keys to a 19 year old, the information behind the premium is wrong.
Who drives
Fleet tariff
Single policy for a company car
Employee with company car
insured
insured
Colleague on a work trip
usually insured
only if within the driver group
Spouse on a private trip
insured if the employer allows it
only if within the driver group
Young drivers in the household
depends on tariff, sometimes a surcharge
often excluded or more expensive
Friends and other third parties
usually banned by the company car policy
usually outside the driver group
A valid licence comes first
As keeper, a company that lets someone drive without a valid licence commits a criminal offence under § 21 of the Road Traffic Act (StVG). Fleet managers therefore check licences when handing over a car and regularly afterwards, and keep a written record.
For international staff this is a common trap. Licences from outside the EU and EEA are generally valid in Germany only for a limited time after you take up residence and then must be converted. Driving bans after a fine also only reach the company if the employee reports them, so the company car policy should require that.
Who pays when the company car is damaged
Damage to the other party's car is always paid by the company car's motor liability insurance. Damage to the company car itself depends on comprehensive cover (Kasko) and on how far the employee is liable. On work trips German labour courts limit employee liability: usually none for slight negligence, a shared amount for normal negligence, and usually full liability for gross negligence.
On private trips in a company car this limitation does not apply. If the employer has not taken out reasonable comprehensive cover, the employee's liability can be limited to a usual deductible. The written company car agreement should set out what applies.
Is the driver insured as well?
Motor liability never pays the driver who caused the accident. On work trips and on the direct way to work, statutory accident insurance steps in through the employers' liability insurance association (Berufsgenossenschaft). On private trips with a company car that protection is missing.
Driver protection cover closes the gap. It pays the injured driver pain and suffering, loss of earnings and care costs as if someone else had caused the crash. For company cars with private use it is one of the cheapest add-ons in a fleet contract.
Step by step
Check the contract for a fixed driver group.
Set out in the company car policy who may drive privately.
Check licences at handover and regularly afterwards, and record it.
Add driver protection for every company car used privately.
Agree employee liability and deductibles in writing.
Report young drivers in the household to the insurer before they drive.
Checklist
Driver group in the contract matches reality
Private use and family members covered by the company car policy
Licence checks documented with date
Duty to report driving bans agreed
Non-EU licences checked for validity in Germany
Driver protection included
Common mistakes
Assuming every driver is automatically insured, even under a single policy
Checking licences only once when hiring
Overlooking the limited validity of a non-EU licence
Skipping driver protection although the car is used privately
Questions and answers
Frequently asked
Can my spouse drive my company car?
Yes, if the company car policy allows it and the insurance contract has no narrower driver group.
Ask your employer before handing over the keys.
What happens if an unlisted driver causes an accident?
The injured party is paid by motor liability.
Between the company and the insurer, back charges may follow;
the details are in the policy conditions.
Do I have to pay for damage to my company car?
On work trips only to a limited extent, depending on fault.
On private trips full liability can apply where comprehensive cover does not pay.
Your company car agreement also matters.
Can I drive the company car with my US or UK licence?
For a limited time after taking up residence in Germany, generally yes;
afterwards many non-EU licences must be converted.
Your employer as keeper has to check this.
Is my commute in a company car insured?
For your own injuries yes, the direct route to work is covered by statutory accident insurance.
Private detours are not.
Can the employer exclude drivers under 25?
Yes, through the company car policy.
Some tariffs charge a surcharge for young drivers,
so compare whether exclusion or surcharge is cheaper.
