Concept and significance of motor vehicle liability
Motor vehicle liability represents a central pillar of liability regulations in traffic law. It primarily describes the statutory obligation to compensate damages caused to third parties during the operation of a motor vehicle or trailer. Motor vehicle liability is inextricably linked to protecting victims of traffic accidents and serves to regulate the financial consequences of personal injury, property damage, and financial losses in road traffic.
Legal foundations of motor vehicle liability
Statutory foundation
The core element of motor vehicle liability in Germany is § 7 of the Road Traffic Act (StVG). This law obligates the vehicle owner to bear liability for damages arising from the operation of a motor vehicle. Apart from the StVG, additional laws and ordinances, such as the Compulsory Insurance Act (PflVG), govern the details and enforcement of motor vehicle liability as well as the required coverage through liability insurance.
Relevant parties and liability relationships
Persons liable within the scope of motor vehicle liability typically include vehicle owners, drivers, and, under certain circumstances, owners of trailers. Liability is generally independent of fault (“strict liability”), meaning that the mere act of operating a vehicle establishes responsibility for any resulting damage. However, exceptions exist, for example in cases of force majeure or improper use of the vehicle.
Scope of motor vehicle liability
Types of damage
Motor vehicle liability covers claims for compensation arising from
- personal injury (e.g., injury or death),
- property damage (e.g., damage to cars or buildings),
- financial losses resulting from a primary damage (so-called consequential financial losses).
Pure financial losses which are not attributable to personal injury or property damage are generally not covered by motor vehicle liability.
Coverage and compulsory insurance
In Germany, for vehicles and trailers requiring registration, taking out motor vehicle liability insurance is mandatory by law (§ 1 PflVG). This insurance compensates third parties for damages caused by the operation of the vehicle within the limits of the agreed insurance sum. Without valid liability insurance, a vehicle is generally not permitted to participate in public road traffic.
Minimum coverage amounts
According to § 4 PflVG and § 12 Vehicle Ordinance, certain minimum insurance amounts must be observed. Currently (as of 2024), they are:
- Personal injury: 7.5 million euros per injured person,
- Property damage: 1.22 million euros per claim,
- Financial losses: 50,000 euros per event.
Insured parties and exclusions
Motor vehicle liability insurance generally covers owners, authorized drivers, proprietors, and occupants; however, there are certain exceptions, such as driving without a license or grossly negligent behavior. Intentionally caused damage (e.g., hit and run) or damages to transported goods are not covered unless different provisions apply.
Extent and limitations of liability
Limits of liability
In particular cases, the extent of liability can be limited in accordance with § 12 StVG, for example if an unavoidable event or force majeure occurs. Contributory negligence by the injured party (e.g., failure to wear a seatbelt) can also reduce the obligation to compensate.
Special features: strict liability and fault-based liability
Strict liability represents an aggravating special rule: even without the owner being at fault, they can be held liable for damages causally related to the operation of the vehicle. Liability is excluded only if proof of an unavoidable event or force majeure is provided.
If there is fault—intent or negligence—then other parties, particularly the driver, can also be required to pay compensation in addition to the owner.
International aspects and the scope of motor vehicle liability
Validity abroad
Liability insurance is not only valid domestically; it often also covers other European countries, depending on the insurance conditions. The “Green Card” (International Insurance Card) plays an important role here. Different terms may apply for non-EU countries.
Direct claim of the injured party
A key feature of motor vehicle liability insurance is the direct and immediate claim that the injured party has against the liability insurer (§ 115 VVG). This simplifies and speeds up claim processing, since the insurer, as a financially capable debtor, is liable in place of the person who caused the damage.
Special cases involving uninsured or unknown drivers
If damage is caused by an uninsured or unidentifiable vehicle, injured parties can assert compensation claims with the Verkehrsopferhilfe e. V. (VOH) association. The VOH acts as a guarantee fund to ensure that injured parties are not left without compensation.
Sanctions under traffic law for violating compulsory insurance
Violation of the legal requirement for insurance is not only an administrative offense, but may also carry criminal consequences (§ 6 PflVG). Vehicles can be forcibly deregistered and driver’s licenses withdrawn.
Case law and current developments
The interpretation of motor vehicle liability regulations is continuously evolving through case law. In particular, the distinction of what constitutes the “operation” of a vehicle and the attribution of fault are regularly reviewed. Technical advancements, such as autonomous driving, also influence the shaping of motor vehicle liability and result in ongoing adjustments to the regulatory framework.
Summary
Motor vehicle liability is a central instrument for securing liability in road traffic. It protects victims of traffic accidents and ensures their compensation through mandatory motor vehicle liability insurance. The specific features of the strict liability principle—combined with strict insurance requirements and extensive compensation law—make motor vehicle liability a cornerstone of traffic law. The complex statutory regulations provide comprehensive protection of life, health, and property in everyday road traffic.
Frequently asked questions
Who is legally required to take out motor vehicle liability insurance?
In Germany, under § 1 of the Compulsory Insurance Act (PflVG), all owners of vehicles and trailers operated in public traffic are required to take out liability insurance for the respective vehicle. The insurance requirement applies regardless of whether the vehicle is used privately or commercially. It begins with the registration of the vehicle and ends only when the vehicle is permanently taken out of operation or deregistered. Without such liability insurance, a vehicle may neither be used on public roads nor parked on areas serving public traffic. Violations may result in criminal and administrative penalties and will lead to a refusal of registration by the registration authority. The insurance primarily serves the protection of third parties, i.e., potential accident victims, and not the vehicle owner.
What statutory minimum coverage amounts apply to motor vehicle liability insurance?
The statutory minimum coverage amounts are regulated in § 4 section 1 PflVG in conjunction with § 12 section 1 Compulsory Insurance Regulation (PflVersV). For personal injury, the minimum insurance sum is 7.5 million euros per injured person; for property damage, 1.22 million euros per claim; and for financial losses, 50,000 euros per claim. However, insurance companies generally offer coverage amounts that significantly exceed the statutory minimum requirements to provide more comprehensive protection. Nevertheless, compliance with these statutory minimum coverage amounts is a prerequisite for fulfilling the insurance obligation.
To what extent does motor vehicle liability limit the policyholder’s liability?
Motor vehicle liability insurance generally covers damages caused by the use of the vehicle to third parties up to the agreed coverage limit. However, if the policyholder intentionally causes damage or grossly negligently breaches their duties—such as by fleeing the scene of an accident or driving without a license—the insurance company may seek recourse from the policyholder under § 103 VVG (Insurance Contract Act). In such cases, the insurance does not limit the policyholder’s liability, but merely makes advance payments to the injured party and then reclaims all or part of the disbursed amounts.
What damages are not covered by motor vehicle liability insurance?
Motor vehicle liability insurance generally covers only damages inflicted upon third parties through use of the vehicle. Self-inflicted damages (to the policyholder’s own vehicle), intentionally caused damages according to § 103 VVG, damages to transported goods, as well as damages occurring during races or similar events (§ 2 PflVG), are not covered. Damages between persons transported in the same vehicle are also excluded unless insurance coverage has been agreed (§ 3 no. 1b PflVG), as are damages resulting from nuclear incidents or acts of war.
What happens to the existing motor vehicle liability insurance when a vehicle is changed?
If the insured vehicle is deregistered and a new vehicle is purchased, the existing motor vehicle liability insurance can be transferred to the new vehicle. This generally requires consent or notification to the insurer. The premium will then be calculated based on the specific features of the new vehicle. It is also possible to formally terminate the old policy and take out new insurance, whereby the owner in particular must ensure seamless coverage in accordance with § 1 PflVG, so that there is no period without insurance. Moreover, claim-free years and bonus-malus systems can usually be transferred.
What are the legal consequences of lacking liability insurance in road traffic?
Anyone using a vehicle without the legally required motor vehicle liability insurance is liable to prosecution under § 6 PflVG. Penalties of up to one year’s imprisonment or fines may be imposed; in addition, the vehicle may be deregistered, and registration withdrawn. If an accident occurs, the owner and driver are personally and fully liable for all damages caused. The traffic victim assistance association or the so-called compensation fund according to § 12 PflVG may step in for the injured party, but they will seek recourse from the uninsured owner or driver. This constitutes a significant, potentially existential financial risk.
Can the insurer refuse to provide benefits in the event of a claim?
Motor vehicle liability insurance, in principle, may not refuse to settle valid claims by the injured party, provided a covered event has occurred. However, the insurer may reduce benefits or seek recourse from their own policyholder if they have breached contractual or statutory obligations—for example, due to breaches such as driving under the influence of alcohol or drugs, hit-and-run, or deliberate false statements. The claims of the injured party, however, remain intact in every case, provided there is coverage, even in cases of gross negligence by the policyholder, vis-à-vis the insurer.
