As you might expect, there are many different types of insurance in Germany. In fact, the Germans have something of a reputation for being big fans of insurance! Some types of insurance are universal in Germany, meaning that it is compulsory to take out cover, although you are given a certain amount of control to choose your own provider.
Below is an overview of some of the kinds of insurance expats in Germany might encounter. While some are compulsory and must be taken out by everyone, others are optional. Before taking out any kind of insurance, it would be wise to compare different policies, premiums and excesses to help you choose an insurance provider.
Health insurance is universal in Germany, meaning that, by law, everyone needs to take out cover. If you are working in Germany, you will normally be signed up to a statutory health insurance scheme, to which your employer will contribute 50 percent of your premiums. If you are self-employed or a high-earner, you can opt for private health insurance.
The German social security system is comprised of various forms of compulsory insurance. Everyone who is a waged employee in Germany makes mandatory contributions to these insurance schemes, which include:
In return, your contributions qualify you for an assortment of benefits and allowances in the case of inability to work due to accident, illness or old age.
Anyone who drives a car in Germany is obliged to purchase at least minimal car insurance coverage. These kinds of policies will pay out in the case of you or your car causing damage to other people, cars or property. You can also choose more comprehensive cover that protects you in the case of accidental damage, theft and fire.
Although not compulsory to have, personal liability insurance is one of the most commonly-held types of private insurance in Germany. It protects the policyholder from lawsuits or other claims if you unintentionally harm another person or their belongings.
To ensure their dependents do not face financial difficulties in the event of their death, many people choose to take out life insurance. This type of insurance policy will pay out a pre-agreed lump sum of money to your named beneficiaries, should you die unexpectedly.
While the German dental care system offers high quality care, the coverage provided by public health insurance is quite limited, and many people find themselves paying out of pocket for treatments that go beyond basic care. To cover the gap, you can take out dental insurance.
Protect yourself from legal disputes and feel confident asserting your legal rights, no matter the cost, with legal insurance. Legal insurance in Germany provides cover should you need legal advice or representation in court during a dispute with your neighbour, employer, a business, or someone else.
Medical bills for pets can quickly add up. On top of this, pet owners are liable with their personal assets for any damage their pets cause. For this reason, many people in Germany choose to take out pet insurance for their four-legged friends.
Plenty of renters and homeowners in Germany also choose to take out home insurance, which protects you in unfortunate situations like house fires, extreme weather, theft and burglaries.
Income protection insurance provides you with a regular monthly salary if you can no longer work for health reasons like burnout, chronic back pain or illness. Packages can be tailored to suit your exact needs.
If for any reason you are unable to work for six months or more, whether due to illness, injury or some other health reason, occupational disability insurance (Berufsunfähigkeitsversicherung or BU-Versicherung) will step in to provide a monthly disability pension for as long as you are out of work. The occupational disability pension (Berufsunfähigkeitsrente) supplements the income you might receive from the state, which is known as a reduced earning capacity pension (Erwerbsminderung).
Disability insurance isn't mandatory, but many people in Germany choose to take it out as a precaution, since not being able to work not only means a reduction in your income, but also leaves you unable to save for retirement.
Occupational disability insurance can be added onto an existing health insurance or pension insurance scheme, or taken out as a separate private insurance plan. Certain private health insurance companies sometimes combine occupational disability insurance policies with private long-term care insurance, on the basis that inability to work and the need for care are sometimes issues that go hand in hand.
Going on holiday? Make sure you are covered abroad! Purchasing travel insurance means you are covered in the case of missed or cancelled flights, accidents and other unexpected expenses. You can also purchase policies that cover your luggage against theft. Barmenia provides a travel insurance in Germany.
Accident insurance covers you and your family members in the case of either accident or death.
Do you own a bicycle in Germany? Bike thefts are common, so having insurance is a good idea:
Protect your electronic valuables from accident, theft or loss with electronics insurance! Most policies cover liquid damage, cracked screens and even accidental drops as well.
Funeral insurance covers all the arrangements for your loved one’s send-off, so you don’t have to worry about cost. As an expat, it can also cover the costs of repatriation for those who wish to be buried in their homeland.
If you own a house in Germany and are letting it out, you should consider taking out rent guarantee insurance to cover you in the event that your tenants are unable to pay their rent.
Constructions insurance is a legal requirement for most kinds of construction work. There are different types of policies, which can provide coverage for construction materials, employees, guard against risks and protect you in the case of natural disasters. See Grundeigentümer Versicherung to find out more.