Ahsanallahu ilaykum. In Germany, vehicle insurance is mandatory. I recently bought a new vehicle, and for just €20 more, I can get coverage for theft, weather-related and other external damage. Is it permissible to choose this option, given that basic insurance is mandatory anyway?

Ustadh AbdulAziz al-Haqqan

No. If you are forced, you may take only what the law forces on you and nothing more. Commercial insurance is forbidden, and here you are taking the extra by choice not being forced into it which is forbidden.