The German insurance system is seen worldwide as one of the most far-reaching and also one of the hardest to follow. Anyone living in Germany sooner or later asks: which insurance policies do I actually need? This guide gives a clear overview of compulsory insurance and sensible extra cover, in plain language without jargon.
Compulsory insurance in Germany
Health insurance (Krankenversicherung)
Germany has compulsory health insurance for all residents. Employees are usually covered by statutory health insurance (GKV), for example with funds such as AOK, TK or Barmer. The contribution is split equally between employer and employee (about 14.6% plus an additional contribution that varies by fund).
Well-paid employees (above the annual income threshold, Jahresarbeitsentgeltgrenze), self-employed people and civil servants can move into private health insurance (PKV) instead. The PKV usually offers shorter waiting times, chief physician treatment and a single room in hospital. However, premiums rise with age.
Important: If you have just moved to Germany, you must arrange health insurance right after registering your address. You are free to choose your fund, and a comparison is worth it.
Motor liability insurance (Kfz-Haftpflichtversicherung)
Anyone who operates a vehicle on public roads in Germany must show proof of motor liability insurance. Without it, registration is not possible. This insurance pays for personal injury and property damage you cause to others in road traffic. Damage to your own vehicle is not included.
Not required by law, but strongly recommended
Private liability insurance (Privathaftpflicht)
Private liability insurance is one of the most widely held policies in Germany. It protects you from the financial consequences if, in daily life, you cause damage to other people or their property: a fragile vase while visiting, water damage in a rented flat, a bicycle accident with personal injury.
Without private liability insurance, you are liable with all your assets, without limit. An annual premium of €40 to €80 for single people or €60 to €100 for families makes this the best value for money on the German insurance market.
Household contents insurance (Hausratversicherung)
Household contents insurance protects your household contents (furniture, electronics, clothing, bicycles and so on) against damage from burglary, fire, tap water, storm and hail. It also makes sense for tenants, because the landlord's buildings insurance does not cover your personal belongings.
Legal expenses insurance (Rechtsschutzversicherung)
Legal disputes can quickly become expensive in Germany. Legal expenses insurance pays lawyer and court costs in disputes over employment, traffic or tenancy law. For employees in particular, the employment legal expenses cover (Arbeitsrechtsschutz) is of great value, for example after dismissal or in pay disputes.
Occupational disability insurance (Berufsunfähigkeitsversicherung, BU)
Anyone who can no longer work receives only a small reduced-earning-capacity pension (Erwerbsminderungsrente) from the state. Occupational disability insurance protects your income if you can no longer work in your profession for health reasons. The younger you are when you take it out, the lower the premium.
For families and households with children
Term life insurance (Risikolebensversicherung)
If your family depends on your income, term life insurance provides, in the event of death, financial security for surviving dependants. Premiums are very low at a young age.
Children's accident insurance (Kinderunfallversicherung)
Statutory accident insurance covers children only on the way to school and at school. All other accidents are not covered. Private children's accident insurance closes this gap.
How do you find the right insurance?
With many years of experience, we advise individuals and families in Germany in Turkish, German and English in person and matched to your individual situation. Together we analyse the cover you actually need and find the right tariffs.
For a free initial consultation you can reach us at any time via WhatsApp or the contact form. The first conversation is non-binding and free of charge.