Motor liability insurance for company vehicles: the duty to insure

A business that registers a vehicle in its name needs valid motor liability insurance for it at all times, without interruption, for every single vehicle in the fleet.

In brief: Every vehicle registered to a business, from the company car and the van to the registered trailer or plated e-bike, must be covered continuously by motor liability insurance under § 1 PflVG (the German Compulsory Insurance Act for vehicle owners), with statutory minimum cover of EUR 7.5 million for personal injury, EUR 1.3 million for property damage and EUR 50,000 for financial loss. Without cover, deregistration and criminal proceedings are possible.

Who is affected?

Every business that has at least one vehicle registered in its name is affected, regardless of size, legal form or industry. Whether you are a sole trader, a GmbH (German limited liability company) or a freelancer with a single company car, the insurance duty applies to cars and commercial vehicles as well as to trailers and plated e-bikes, as soon as they are registered to the business. The duty applies in full even with just one company vehicle; there is no de minimis threshold and no exception for small fleets. Seasonal or classic-car plates change nothing as long as the vehicle is properly registered.

What do you need to do in practice?

Every registered vehicle must have motor liability insurance with at least the statutory minimum cover. If you operate several vehicles, you should not manage cover vehicle by vehicle but keep the whole fleet in view systematically. The following steps help you keep track of the fleet and avoid gaps in cover:

1. List all vehicles registered to the business (including trailers and plated e-bikes).
2. Take out motor liability insurance for each vehicle with at least the statutory cover.
3. Consider additional cover (comprehensive, passenger accident) depending on vehicle value and use.
4. Archive proof of insurance centrally for the whole fleet.
5. When buying or selling a vehicle, adjust or cancel the insurance without delay.

For businesses with several vehicles, fleet policies covering multiple vehicles bundle the administration and are usually cheaper than individual policies. If employees use private vehicles for work, the company's motor liability duty does not apply, but the business should also consider cover for business-related damage to the private vehicle concerned. A tool such as Company Audit shows which of these obligations apply to your company in practice.

By when / how often?

This duty has no fixed deadline in the classic sense: the insurance duty begins with the registration of the vehicle and must be met without gaps from that point until the vehicle is deregistered or sold. It is therefore an ongoing task, not a one-off administrative act. Whenever a company vehicle is purchased or disposed of, the cover must be adjusted without delay or the vehicle deregistered, so that no gap in cover arises at any time and the business is not unintentionally on the road without protection. Especially when swapping vehicles, for example when a new vehicle is delivered before the old one is deregistered, it is worth paying close attention to seamless transitions.

What are the consequences of non-compliance?

Driving without valid insurance cover leads to deregistration and can be prosecuted as a criminal offence, regardless of whether any damage actually occurs. This applies whether the business owner or an employee drives the uninsured vehicle. In addition, there are considerable financial consequences if, in the event of a claim, the business has to pay for personal injury, property damage and financial loss itself without existing cover, instead of an insurer bearing these costs. For a business, even a single accident with an inadequately insured company vehicle can become a serious financial burden.

Frequently asked questions

Does the insurance duty also apply to trailers?

Yes, trailers and plated e-bikes also need their own motor liability insurance as soon as they are registered to the business. They are part of the fleet subject to the insurance duty just like cars and commercial vehicles.

Is the statutory minimum cover enough?

The statutory minimum cover of EUR 7.5 million for personal injury, EUR 1.3 million for property damage and EUR 50,000 for financial loss must be complied with. Additional cover such as comprehensive or passenger accident insurance is not required by law but should be considered depending on vehicle value and use in the business.

What happens when a company vehicle is sold or newly purchased?

The insurance must be adjusted without delay or, in the case of a sale, cancelled, so that every registered vehicle is covered without gaps. If a new vehicle is purchased, it also needs its own cover immediately from registration.

Are employees' private vehicles used for work affected?

For private vehicles, the business has no duty to take out motor liability insurance, as these are normally covered by the employee's own private motor insurance. However, businesses should also consider cover for business-related damage to the private vehicle when employees use their own car for work.

Are fleet policies worthwhile for several company vehicles?

Yes, fleet policies covering several vehicles are usually cheaper than individual policies and also make it easier to manage proof of insurance centrally for the entire fleet.

Source: § 1 PflVG. This article is general information and does not replace legal advice in individual cases. As of: July 2026.