New Law on Motor Vehicle Liability Insurance: What You Need to Know

Due to an EU directive from 2021, a new law on motor vehicle liability insurance is expected to be passed soon. Specifically, it is about vehicles that exceed a maximum speed of six kilometers per hour and can reach a maximum speed of 20 kilometers per hour, it says Federal government bill from August 23, 2023. This could mean for many insured persons that they will have to pay more from December 23, 2023. The most important questions and answers about the new law at a glance:

What is the new law about?

It’s about motor vehicle liability insurance for vehicles such as ride-on lawn mowers, forklifts, snow shovels and agricultural machines that can travel between six and 20 kilometers per hour, explains Melanie Berggold, press spokeswoman for Allianz Insurance. Vehicles with electric motors are also taken into account.

When the new law comes into effect, these vehicles should be required to have motor vehicle insurance that corresponds to the insured sum of a car or truck, according to the General Association of the German Insurance Industry (GDV). However, the insurance requirement only applies as soon as the vehicles are used in public transport.

What exactly is changing?

You already had to take out car insurance for some vehicles, even if they couldn’t drive faster than 20 kilometers per hour. However, the planned law will add even more to the affected vehicles. This could lead to insurance costs rising sharply, explains Katrin Jarosch, press spokeswoman for GDV.

Which vehicles are affected by the planned law?

Riding lawnmower: According to the new draft law, a ride-on lawn mower must also be covered by motor vehicle liability insurance if it drives on open roads, explains Melanie Berggold, press spokeswoman for Allianz Insurance. This could be relevant for owners who would like to refuel their lawnmower at the nearest gas station.

Forklift: They must also have motor vehicle liability insurance if they can drive faster than six kilometers per hour and are used in traffic, says Berggold. Until now, the forklift had also been insured with commercial or private liability insurance.

Snow shovel: According to the press spokeswoman for Allianz Insurance, snow removal by a moving snow shovel is also affected by the new law if the snow shovel is on public transport. Otherwise: private or commercial insurance is sufficient.

Agricultural machinery: Tractors and other agricultural vehicles that do not exceed 20 kilometers per hour and sometimes drive on the open road will soon have to have motor vehicle liability insurance, says Johann Meierhöfer from the German Farmers’ Association. Up until now, company liability insurance was sufficient to protect you in the event of damage.

Which vehicles must already have vehicle insurance?

E-Tretroller: If you own an electric scooter and drive it on the street, you need insurance for the scooter. This regulation for e-scooters, which can reach a speed of 20 kilometers per hour, already applies now, says Melanie Berggold from Allianz.

You also need a general operating license for an electric scooter, because without this the scooter cannot be used on the road.

E-bikes and Pedelecs: There are different levels of electric bikes. An e-bike is not the same as a Pedelec. An e-bike is a vehicle that travels without pedal assistance. A Pedelec is a bicycle in which the motor only provides support when the pedals are pedaled.

E-bikes that travel up to 25 kilometers per hour are legally viewed as mopeds, explains Alexander Schnaars, ADAC company spokesman. This means that an insurance license plate is required and therefore vehicle insurance must also be taken out.

E-bikes with a speed of up to 45 kilometers per hour legally correspond to a moped, says Schnaars. An AM driving license and vehicle insurance are required for this vehicle.

A Pedelec with pedal assistance up to 25 kilometers per hour belongs to the “assistive electric bicycle” category and does not require vehicle insurance. Here, accident damage is covered by private liability insurance, says the ADAC company spokesman.

Pedelecs, which can reach a speed of up to 45 kilometers per hour, belong to the category of motor vehicles and are therefore subject to insurance, says Schnaars.

Electric wheelchairs: An electric wheelchair usually travels between six and 15 kilometers per hour. Although the user does not need a special license for the wheelchair, if the speed limit is over six kilometers per hour, the e-wheelchair used in public transport must also have motor vehicle liability insurance and a license plate, says the company spokesman of the ADAC.

What happens if you don’t have car insurance on your vehicle?

If the planned law is implemented, its violation will not only be considered an administrative offense, but also a criminal offense. “Anyone who has not taken out vehicle insurance for their vehicle is committing a crime,” says Schnaars. In extreme cases, this could mean that the vehicle is confiscated and you receive a fine or even a prison sentence, explains Claudia Frenz, press officer for the Association of Insured Persons.

What does the General Association of the German Insurance Industry say about the planned law?

The General Association of the German Insurance Industry (GDV) has clearly spoken out against the new law. He believes it is unnecessary because the affected vehicles are usually adequately covered by general liability insurance.

“The current solution is clear, practical, cost-effective and completely sufficient. We are not aware of a claim in which the general liability insurance coverage was not sufficient,” says Jörg Asmussen, General Manager of GDV.