Insurance in Germany- A complete guide


Written by Germany Simplified

February 22, 2021

People in Germany take insurance very seriously. Whenever someone is moving to Germany, the first thing they must think of is probably getting their insurance sorted. Germans have an insurance for almost any thing and everything. They make sure insurance is taken up with utmost care and responsibility because they are one of the most developed nations in the world. Insurance in Germany is a wide aspect and covers a lot of insurances that we will talk about in this article.

Moving to Germany is a great decision to make. The one thing you must focus on before heading to Germany is that you need to consider what insurances you want to opt for in Germany. At the end of it, you might either be over insured or absolutely under insured. This is why, be alert while you are looking for insurance options in Germany.

The Federal Financial Supervisory Authority (BaFin) regulates the German insurance market. Most companies belong to the German Insurance Association (Die Deutschen Versicherer – GDV), which has around 460 members. Keep an eye on the media, insurance-related websites, as well as consumer guides. Check consumer comparison tools to make sure you are getting the best deal.

There are several insurances you might have to take before heading to Germany. You have to be on your toes while shopping for insurances in Germany because it is too much of a task. You might have a lot of questions in your head before applying for German insurances. Right? Questions like, is healthcare in Germany free? Which insurance companies in Germany are good? Is private insurance in Germany available? In this article, we have tried to answer a lot of these questions. Read further to know more.

Compulsory Insurance

Health Insurance

Health Insurance is a compulsory insurance in Germany whether you are someone who is living or working there. You need to have a health insurance in Germany in order to get entry in Germany. The German health insurance is a very useful thing as well. They cover most of the health ailments under it and help expats as well as German citizens to get their health treatment done at much cheaper prices than what have actually been asked for.
If you are wondering, is healthcare in Germany free? We would like to tell you that yes, healthcare in Germany is free but only to a certain extent.

The health insurance system works in a dual manner. The minute you enter Germany, you are automatically covered under the state health insurance which is the gesetzliche krankenversicherung – GKV. You are only eligible for this insurance if you work in Germany and get paid €4,950 and €59,400 a year before tax.

You can opt for a private insurance in Germany too. The private health insurance option is a little more expensive than the state insurance but comes with a lot of perks as well. People who are entitled and can afford the private insurance usually go in for a private health insurance plan.

Vehicle Insurance

A vehicle insurance in Germany is another compulsory insurance you need to have if you own a vehicle in Germany. You cannot have a vehicle without an insurance and you are not even advised to have one if there is a need. An insurance s the ideal way of getting saved from maximum number of damages that could happen to your car. Vehicle insurances in Germany cover most car related issues that could probably happen. There are three kinds of vehicle insurances that your car can fall under. They are: –

  • Third Party Liability (haftpflicht)- The third party liability vehicle insurance covers damages that are caused by accident to your car. In case the accident was your fault and the car was damaged because you were rash driving, the insurance does not cover the damages. This is the basic legal requirement insurance that your vehicle needs to have in Germany.
  • Partial Coverage (teilkasko) – Partial coverage vehicle insurance includes third party liability insurance plus damages that have been caused by theft, fire, or any natural calamities.
  • Comprehensive Coverage (vollkasko)- The comprehensive coverage insurance is one insurance that most Germans opt for. This insurance incudes any kind of damages to your vehicle. Whether it happened by accident or it was your fault. All kinds of damages are covered in the Comprehensive coverage insurance.

Work Insurance

Working in Germany requires you to have a work insurance in Germany. There are many insurance companies in Germany that offer work insurance.

 When you are working in Germany, you automatically pay towards a few additional forms of insurance besides health insurance through social security contributions (sozialversicherungsbeiträge). These consist of:

  • Unemployment insurance (arbeitslosenversicherung) – In this kind of an insurance, payments split between employer and employee. This entitles you to unemployment benefits if you are out of work and meet certain criteria. The unemployment insurance helps you in the days when you are unemployed.
  • Statutory pension insurance (rentenversicherung) – German state pension. The German state pension is an insurance which expects you to pay money for your pension during the years you are working in the German work force. You can redeem it when you are retired and live on the pension you earned.
  • Statutory accident insurance (gesetzliche unfallversicherung) – This is completely paid by the employer and covers treatment costs after work-related accidents or illnesses. If you hurt yourself on the job, this insurance makes sure your employer pays for your treatment entirely.


Optional Insurance

Accident Insurance

The state pays accident insurance to the workers in Germany. It is a compulsion for the state to pay this insurance and it covers most of the accidents. This insurance is however only limited to that accidents that occur during or from work. If people want accident insurance beyond this, they can always opt for a private accident insurance in Germany.

This ensures that, in the event of a personal accident that limits your abilities long-term, all costs caused by the accident are covered. Whatever the hospital bill and medical cost may be, it is entirely covered in the accident insurance.

Life Insurance

You can get access to the best life insurances in Germany. Life insurance in Germany covers all your family members after your death. They get a huge chunk of your insurance money once you are gone. If you do not want your life insurance money to go to your family, you can make a few changes and have the name of the person written down to whom you want your life insurance money to go after you are gone. The money is usually paid out in a lump sum and will take care of those financially dependent on you as well as cover outstanding payments such as loans and house mortgage.

Property Insurance

Buying or owning a home in Germany requires you to have a property insurance for the space you own. It is advisable to have a property insurance for your house in Germany if you are shifting in Germany for good. It will cover all house damages which will normally cost you a bomb for the repairs. The property insurance covers property against damage from occurrences such as fire, water, storms or vandalism. If you are renting property, this insurance should be taken out by the landlord.

Taking out building insurance involves providing the insurer with a lot of information on things such as building measurements, the date your home was built and what building materials were used.

Personal Liability Insurance

The Personal liability insurance is an important insurance to have in Germany. It takes care of a lot of things such as injury or damage to other people or their property. You have a choice to make while opting for the personal liability insurance. You can either get a single person coverage or choose to cover additional members of your family.

This insurance does not cover damages caused by your car. You are expected to take out a separate vehicle insurance for this.

The German law states that there is no limit on the sum of money someone can claim against you if the insurance norms as hampered. Personal liability insurance helps you avoid the risk of getting into a bad incident causing great financial harm.


The insurance system in Germany is extensive. We hope this German insurance guide can help you with choosing your insurances in Germany.

Read here to know about Health Insurance System in Germany.


advertisement advertisement

Join us NOW


advertisement advertisement


You May Also Like…

Top 10 sports in Germany

Top 10 sports in Germany

Is there any country which loves sports more than Germany? We don’t think so. Germans just love sports and most of...


Submit a Comment

Before you leave...
Before you leave...

Stay updated on our blogs and new developments, all to support you. 

You have successfully submitted the information. Thank you.