What Insurance Do You Need in Germany?

The word insurance tends to send shivers down one’s spine. We all know it costs money and that they often include more fine print than a magnifying glass can pick up, but we know we need it.But… why is it that so many Germans love insurance so much?

Simple answer? It minimizes their risk (well, duh). 

If you’re keen on learning even more about this oddly interesting topic, you’ll find me entirely debunking this question below. Otherwise, scroll down, and let’s just jump straight to the nitty-gritty. 

In this guide, we unravel the mysteries surrounding insurance, addressing the why, what, and how that many find perplexing.

Looking for more personal advice? 👇

Here’s what we’ll explore in this guide together: 

✅ Why do Germans love insurance?
✅ Types of insurance in Germany
✅ Essential insurance in Germany (public and private health insurance, car insurance)
✅ Highly recommended insurance (liability, home contents, legal)
✅ How to choose the right insurance

🤔 Navigating the intricacies of insurance in Germany becomes more manageable with a comprehensive understanding. Whether it’s mandatory health coverage or safeguarding personal belongings, this guide will help empower you to make informed choices tailored to your needs.

What types of insurance are there in Germany? 

The most important thing to note here in Germany is that while many countries tend to offer their insurance together in one nice and neat package, here in Germany they’re often sold separately. So while it might seem exhausting, it’s rather convenient… and might I add, affordable.

If there’s one reason you should look into minimizing your risk and signing up for insurance, it is that financially, you’re better off paying for insurance than not having insurance at all. 

So what types of insurance are there in Germany? 

• Health insurance (Krankenversicherung)
• Car insurance (Kfz-Versicherung)
• Liability insurance (Haftpflichtversicherung)
• Home contents insurance (Hausratversicherung)
• (E-)Bike insurance (Fahrraddiebstahl)
• Dog liability insurance (Hundehaftpflichtversicherung) 
• Pet health insurance (Tierkrankenversicherung)
• Pension Insurance (Rentenversicherung)
• Disability insurance (Berufsunfähigkeitsversicherung)
• Accident insurance (Unfallversicherung)
• Severe illness insurance (Schwere-Krankheiten-Versicherung)
• Life insurance (Lebensversicherung)
• Legal insurance (Rechtsschutzversicherung)
• Renter liability insurance (Mieterhaftpflichtversicherung – or join a renters association)
• Unemployment insurance (Arbeitslosenversicherung)
• Travel insurance (Reiseversicherung)
• Drone insurance (Drohnenversicherung)

But… which insurance do I legally need in Germany? 

In the grand scheme of things, deciding which types of insurance you need to get will entirely depend on your needs, your wants, and your current situation – we go through this in detail in the Welcome Program. However, you are legally required to have health insurance here in Germany, whether that be private or public. Car insurance is also mandatory when registering a car in Germany.

Health Insurance

In Germany, you may have the option to get public insurance (Gesetzliche Krankenversicherung) or private insurance. There is a third option that’s much cheaper that most people don’t tell you about which we share in our free checklist).

However, some sort of health insurance is mandatory. Without it, you will not be able to obtain a residence permit, which also means you will not be able to live, work, or study in Germany. 

If employed, the cost of health insurance is split 50/50 between the employee and the employer. 

We go through this in great detail in the Welcome Program so you know exactly which one will be best for you and possibly your family. However, here’s a quick breakdown so you can quickly scout out which option might make more sense for you.

Public Insurance 

• When employed, you are automatically signed up for public insurance
• You do not have to pay any upfront fees, medical bills are paid directly by the health insurance provider
• You always have the option to switch to private insurance if you qualify (pass a medical assessment and meet income requirements)
• You’re spouse (if unemployed or earning less than 538/month) and children can be insured through your plan free of charge
• BONUS: Rather than signing up for private insurance for the extra care, you can consider getting add-ons to your public insurance like extra dental coverage (I highly recommend this) or better hospital care (private room, head doctor, etc.)

If you decide you would like to register for public insurance, there are quite a few different options that we go through in the Welcome Program. But, two of the best public insurance providers for English speakers are:

      AND 

⬆️ You can click on the logos above for more information about each ⬆️

NOTE: Public insurance companies do not differ much from one another in regards to price and services. If there is any difference at all, they will be very minor add-ons (perhaps one offers a free eye screening and the other doesn’t).

Both of the recommended insurance providers above offer excellent English services and support. Regardless of which health insurance provider you choose, healthcare in Germany is excellent. If you already know you will be joining a public health insurance plan, but still have questions. Why not ask the expert?

I’ve teamed up with English-speaking reps at some of the most popular public health insurance companies – Barmer and TK – who have agreed to offer our readers a free 30-minute consultation regarding public insurance (not a sales call, but a helpful resource).

SCHEDULE YOUR FREE 30-MINUTE CONSULTATION WITH TK

SCHEDULE YOUR FREE 30-MINUTE CONSULTATION WITH BARMER

TIP ALERT: If you’re new to Germany, taking a language course, or in the midst of finding a job, you also have the option of purchasing expat health insurance, which is a much cheaper option than private and public healthcare. If you are not yet in the public or private healthcare system, you should take advantage of the expat health insurance while you can (as long as you have no pre-existing medical conditions that need tending to).

Private Insurance

The most important thing to note is that private insurance is not available to everyone. If you are a freelancer, doctor, civil servant, student, or employee earning a minimum of *€73,800 annually, you may opt for private insurance.

• You can often get appointments much faster
• You can see specialty doctors without having to visit your general practitioner (GP) first
• You have access to private practices (which can offer exclusive services and are much less busy)
• You may receive additional perks like private hospital rooms, better services, etc.
• Your spouse and children can be insured through your plan for an additional fee

*This minimum earning can/will always change year after year so make sure to double-check if you qualify for private insurance

If you choose to go with private health insurance, the English-speaking expat favorite tends to be Ottonova, however, it’s always in your best interest to contact a free independent broker to help you choose between private providers and understand all of your options.

Ottonova is a modern and easy-to-understand private health insurance provider specifically designed with English-speaking expats in mind. You can easily sign up online, and there is 24/7 English-speaking support. It is cheaper than many of the outdated German private insurance companies and also offers some cool perks – like finding specialists and booking appointments on their app!

TIP: If you’re healthy and planning on staying in Germany for less than 5-10 years, Ottonova should be your first choice. This is a much cheaper option than public insurance for those not planning on staying in Germany forever. Private plans are cheaper than public when you’re young & healthy.

However, if you’d like to compare other private health insurance options, you can compare your options online and/or contact a free independent broker like KLforExpats (who offers support for expats entirely free and in English). 

CAR INSURANCE (KFZ Versicherung)

If you plan on bringing your car over or registering a car here in Germany, car insurance, like in most countries, is mandatory. Before you can even register your vehicle here in Germany, you will be required by law to provide accurate proof of third-party liability insurance (this is essentially liability insurance for your car). You also have the option of choosing to opt into a larger package like “partial insurance” (Teilkasko) or “comprehensive insurance” (Vollkasko).

• Liability insurance (aka. third-party insurance), is the absolute minimum that is required for you to register a car in Germany. This covers the bare minimum which means it only really covers the damage you do/your car causes to another car or people involved in the accident.
• Partial insurance is the second-tier insurance essentially. It offers everything that is included in your liability insurance, plus some additional bonuses. While it covers many additional aspects, the payout is often capped.
• Comprehensive insurance is your best bet as it covers virtually everything there is to cover. If you have an expensive car or a vehicle you intend on keeping for the long haul, going with this “Vollkasko” insurance should be a no-brainer.

GREAT NEWS: Car insurance is quite affordable in Germany (especially if you’re used to paying insurance bills in North America).

There are many different insurance packages you can choose from when picking your car insurance, so the easiest way to do it would be to use a comparison website (aka. Vergleichsportal) and search for the “Kfz” category when you get there.

A couple of expat favorites include:

⬆️ You can click on the logos above for more information about each ⬆️

Which insurances are highly recommended? 

When I say “highly recommended”, I mean most Germans have these. It doesn’t mean you need them, but don’t be surprised if some small accident happens and someone is quick to go through insurance. It’s quite normal here in Germany, which means it’s also good to be well-prepared.

NOTE: I don’t mention them below, but insurances like accident insurance, pension insurance, or disability insurance, depending on your type of employment, may or may not be already deducted from your monthly pay check or included in your salary. Always ask your employer ahead of time what types of insurance they are willing to cover. 

Liability Insurance (Haftpflichtversicherung)

I wouldn’t give private liability insurance a second thought. It’s simply excellent insurance to have – especially if you’re prone to accidents or you have children! I’m talking about even minor accidents like bumping someone in the tram and knocking their coffee over onto their important documents or scratching the side of a car with your child’s training wheels. Things happen and private liability insurance is extremely affordable (less than 5 Euros a month).

Like many insurances, you can also compare your liability insurance options online, but if you’re looking for one that’s cheap, quick, easy to use, and speaks English, then I’d 100% suggest going with Feather Insurance or GetSafe.🥳

⬆️ You can click on the logos above for more information about each ⬆️

They are two of the only digital insurance providers in Germany and offer quite a competitive rate. That means that with the click of a button and their online chat, it’s as simple as sending them a text saying “I just broke my friend’s lamp, can you help me?” and then setting up the claim.

It is that simple.

In comparison to other liability insurance providers in Germany at the moment, it’s like night and day. Plus, bonus… you can cancel whenever you want.

GET YOUR FREE QUOTE NOW

Home Contents Insurance (Hausratversicherung)

Home contents insurance protects you and all your movable objects at home in the case of a fire, storm, robbery, or theft. Common reasons to have home contents insurance would be if you often have friends or family over (especially children – or adults that act like children, haha). It is also a very popular insurance to have in Germany for city dwellers. With about 83 million residents in Germany, more than 50 million of us had home contents insurance in 2020.

Things can happen, and if you live in the city or a ground-floor apartment, there is always a chance of a break-in and it’s important to be covered. Plus, it is cheap too!

⬆️ You can click on the logos above for more information about each ⬆️

Similar to liability insurance, GetSafe and Feather are great options, but you can also compare your options online.

GET YOUR FREE QUOTE NOW

Legal Insurance (Rechtsschutzversicherung)

Legal insurance shocked me when I first arrived in Germany. I’d never been in trouble with the law and never thought in a million years I’d need legal support. Let’s just say that in the last 3 years, I’ve required legal support more than once (no, I did not break the law 😝 ).

While a little less than 50% of all Germans have legal insurance, it’s a good one to have if you have the money to do so, though it’s not mandatory.

If you think legal insurance may be something you’d like to consider, make sure you compare your options online first. Otherwise, here are a couple of expat favorites:

⬆️ You can click on the logos above for more information about each ⬆️

Pension Insurance (Rentenversicherung)

German pension insurance is a key component of the social security system in Germany. It ensures that workers, including expats, receive financial support during retirement. Contributions are mandatory for most employees, with both the employer and employee paying into the system. However, private pension insurance is highly recommended. While the state pension provides a foundation, it may not be enough to maintain your current standard of living in retirement. Private pension plans, such as “Riester” or “Rürup” pensions, allow you to save more for the future and take advantage of tax benefits. For expats, private pension insurance is especially valuable because it gives flexibility to invest in tailored plans, ensuring you can bridge any gaps left by the state system and enjoy a comfortable retirement, regardless of how long you stay in Germany.

There are several pension plans that you can look into, but I would suggest reaching out to a retirement planner to help you. It’s entirely free and they can better explain the market to you so you know your best options.

You might also be happy to know that If you have all your other insurances with Feather, they offer pension insurance for your portfolio too!

Other insurances? 

Other insurances like drone insurance, dog liability insurance or bike insurance may or may not be important to you. If you do have pets, health insurance, and liability insurance can be extremely helpful (vet bills are expensive in Germany). If you have a bike worth a pretty penny and you’re leaving it locked out front of your apartment, then bike/e-bike insurance is also worth looking into.

Otherwise, I’d say it all depends on what you’re comfortable not insuring and whether the risk is high enough to be insured or not.

Too much insurance talk? I get that it can be overwhelming. Thankfully, there are online tools that can help you through it all and figure out exactly which insurance may be worth it for you or not. 👇