Red Plates and Rising Costs: Understanding Vehicle Insurance in Germany
On February 9, 2026, a modified Ruf Porsche 911 was involved in an accident in the Günzburg district, resulting in approximately €300,000 in damages. The vehicle was operating with red license plates, sparking questions about insurance coverage for these types of vehicles. This incident highlights a common area of confusion for vehicle owners and potential buyers in Germany.
What are Red License Plates and Who Can Use Them?
Red license plates, designated with the numbers 05 or 06 followed by the relevant district code, are primarily intended for commercial purposes. They are issued to experts, car dealerships, workshops, and manufacturers who need to register multiple vehicles under a single number. This allows for test drives and vehicle transfers. It’s crucial to understand that private individuals are not authorized to register vehicles with these plates.
The 05 plates are used by vehicle inspectors for examination drives, assessing functionality and identifying potential issues. The 06 plates, often referred to as “dealer plates,” have been exclusively issued to vehicle manufacturers, workshops, and dealers since 1998. These plates can have a validity period of up to one year. Lending a red-plated vehicle to a private individual is illegal and constitutes a criminal offense.
There is an exception: the red 07 plate, occasionally used by classic car owners. This is the only red plate available for private use, but requires a classic car appraisal for registration. A benefit of using this plate is the exemption from regular mandatory inspections, allowing collectors to register multiple vehicles under the same number.
Insurance Requirements for Red Plate Vehicles
Germany has a legal obligation for all motor vehicles to have insurance, as outlined in the Pflichtversicherungsgesetz (PflVG) § 6. At a minimum, this requires third-party liability insurance, which covers damages to others in the event of an accident, but not to the vehicle itself. Additional coverage options include partial coverage (covering damage from external factors like theft or hail) and comprehensive coverage (protecting against self-caused accidents and vandalism).
Driving without insurance on public roads is a criminal offense, potentially resulting in fines of up to 180 daily rates or a prison sentence of up to one year, along with a driving ban and points on your license. In the event of an accident without insurance, the driver is liable for all damages. If the vehicle owner permitted driving without insurance, they are too subject to penalties.
Short-Term Plates: A Growing Alternative
Since the late 1990s, short-term plates (numbered 03 or 04 with black lettering and a validity date displayed) have emerged as an alternative for vehicle transfers and test drives. These plates are valid for a maximum of six days and cannot be extended. They are intended to gradually replace the use of red plates for private use.
Regardless of whether a vehicle has red or short-term plates, insurance is mandatory. Most insurers offer third-party liability coverage for short-term plates, with options for partial or comprehensive coverage available at varying costs. Vehicle registration requires an insurance number (eVB-Number) from the insurer, with costs typically ranging from €60 to €110.
The Cost of Non-Compliance
Driving with expired plates is a traffic violation that can result in a warning fine of up to €50.
Frequently Asked Questions
- Can I drive a car with red plates if I’m not a dealer or inspector? No, red plates are exclusively for commercial use by authorized professionals.
- What type of insurance do I need for a vehicle with a short-term plate? At a minimum, you need third-party liability insurance.
- What happens if I drive without insurance in Germany? You risk hefty fines, imprisonment, a driving ban, and points on your license.
- How long are short-term plates valid? A maximum of six days, and the period cannot be extended.
Pro Tip: Always verify the insurance status of any vehicle before operating it, regardless of the type of license plate.
Explore our other articles on German traffic laws and vehicle registration requirements for more information.
Stay informed about the latest automotive regulations and insurance updates. Subscribe to our newsletter for regular insights and expert advice.
