When I first started in Germany, I always had this confusion which insurances are mandatory, which are good to have, and which are nice to have. I am sure I am not alone! If you are too struggling to understand, I am sure reading this article will give you enough information to choose the right one for your needs.
Germany's great for expats seeking a fulfilling life, stable economy, and vibrant culture. But it also brings responsibilities and risks – like having the right insurance for yourself, family, and the things you own. Insurance is essential, sometimes mandatory, for protection against unexpected events and expenses. This article we list down the 8 must-have insurances for expats in Germany, along with tips for choosing the best options and finding great deals.
Health Insurance
Health insurance (Krankenversicherung) is the most essential and compulsory insurance in Germany. You need to have health insurance to get a visa, a residence permit, or a job in Germany. Health insurance covers most of the medical expenses and treatments in Germany.
There are two types of health insurance in Germany: public (gesetzliche) and private (private). Public health insurance covers most of the medical expenses and treatments, and it is funded by social security contributions from employers and employees. You are eligible for public health insurance if you work in Germany and earn less than €66,600 per year (as of 2023). You can choose from over 100 public health insurance providers, such as Techniker Krankenkasse (TK), AOK, or Barmer.
Private health insurance offers more flexibility and options for medical services and doctors, but it is also more expensive and selective. You can opt for private health insurance if you earn more than €66,600 per year, or if you are self-employed, a freelancer, a student over 30 years old, or a civil servant. You can compare and choose from various private health insurance companies, such as Ottonova, Getsafe, or Feather.
If you are not sure which type of health insurance is best for you, you can consult an independent broker like MW Expat Solutions or use an online comparison tool like Tarifcheck to find the best deal for you. Alternatively, you can also use the recommendation tool provided by Feather Insurance to get a customised plan for you.
Car Insurance
Car insurance (KFZ-Versicherung) is mandatory for anyone who owns or drives a car in Germany. Car insurance covers the damage or injury you cause to other people or their property with your car, as well as the damage or theft of your own car. In Germany, car insurance is divided into three types: liability (Haftpflicht), partial coverage (Teilkasko), and comprehensive coverage (Vollkasko).
Liability insurance is the minimum and compulsory level of car insurance in Germany. It covers the damage or injury you cause to other people or their property with your car, up to a certain limit (usually between €50 million and €100 million). Liability insurance does not cover the damage or theft of your own car.
Partial coverage insurance is an optional and additional level of car insurance in Germany. Teilkasko covers the damage or theft of your own car caused by fire, explosion, storm, hail, flood, lightning, animal collision, or glass breakage. It does not cover the damage of your own car caused by vandalism, collision, or negligence.
Comprehensive coverage insurance is the highest and most expensive level of car insurance in Germany. Vollkasko insurance covers the damage or theft of your own car caused by any event, including vandalism, collision, or negligence. It also includes liability and partial coverage insurance.
The cost of car insurance in Germany depends on different factors, like the type and age of your car, your driving history, your location, and your annual mileage. You can save money on car insurance in Germany by comparing different providers and plans online, and by choosing a higher deductible, a lower annual mileage, or a lower coverage level. Some of the most popular and reliable car insurance providers in Germany are HUK24, ADAC, and Allianz.
Personal Liability Insurance
Personal liability insurance (Private Haftpflichtversicherung) is not mandatory, but it is highly recommended when you live in Germany. This is because in Germany, you are legally liable for any damage or injury you cause to another person or their property, whether intentionally or accidentally. This can result in huge financial claims that can ruin your life. Personal liability insurance protects you from these claims by covering the legal and compensation costs up to a certain limit (usually between €5 million and €50 million).
Personal liability insurance is very affordable, and it covers you, and mostly your spouse, and your children for a wide range of scenarios, such as breaking someone’s glasses, spilling wine on someone’s carpet, or injuring someone in a bike accident.
You can find the best personal liability insurance for expats in Germany by comparing different providers and plans online. Some of the most popular and reliable providers are Getsafe, and Feather.
Dental Insurance
Dental insurance (Zahnzusatzversicherung) is optional and additional insurance that covers the costs of dental treatments and services that are not fully covered by your health insurance. Dental insurance can help you save money on expensive dental procedures, such as implants, crowns, bridges, braces, or veneers.
Dental insurance in Germany is usually offered as a supplement to your public or private health insurance. You can choose from different levels of dental insurance, depending on the percentage of costs you want to be reimbursed, and the types of treatments and services you want to be covered. In Germany dental insurance usually covers between 50% and 100% of the costs of dental treatments and services, up to a certain limit per year or per treatment.
The cost of dental insurance in Germany depends on the level of coverage, the age and health of the insured person, and the provider. You can find the best dental insurance for expats in Germany by comparing different providers and plans online, and by checking the customer reviews, the waiting periods, and the exclusions. Some of the most popular and reliable private dental insurance providers in Germany are Ottonova, Feather, and Getsafe.
Legal Insurance
With legal protection insurance (Rechtsschutzversicherung), you can get financial support for legal expenses and compensation claims that may arise in Germany. Legal insurance can help you defend your rights and interests in various legal areas, such as work, home, traffic, family, or consumer issues.
Legal protection insurance in Germany covers the costs of legal services, court costs, expert opinions, witness expenses, and compensation payments, up to a certain amount per case or per year. However, it does not cover the costs of criminal offences, fines, or sanctions.
The monthly cost of legal protection insurance depends on different factors, like the extent of legal coverage, the kind of legal disputes, the excess, and the provider.
You can find the best legal protection insurance for expats in Germany by comparing different providers and plans, and by checking the customer ratings, the waiting periods, and the exclusions. Some of the affordable and expat friendly legal protection insurance providers in Germany that provides support in English are Feather, Getsafe, and Allianz.
Personal Accident Insurance
With Personal accident insurance (Unfallschutz), you can get financial support for accident costs in Germany. Accident coverage can help you deal with the financial and emotional impact of an accident, such as medical expenses, rehabilitation expenses, income loss, or reduction of quality of life.
Accident coverage in Germany covers the costs of accidents that happen in your private or professional life, such as slips, burns, sports injuries, or road accidents. However, accident coverage does not cover the costs of accidents that are caused by sickness, war, suicide, or criminal acts.
The monthly cost of accident coverage in Germany depends on different factors, like the extent of accident benefits, the degree of accident disability, the age and occupation of the insured person, and the provider. You can find the best accident coverage for expats in Germany by comparing different providers and plans online, and by checking the customer ratings, the waiting periods, and the exclusions. Some of the personal accident insurance providers in Germany are Allianz, Ergo, and Adam Riese.
Term Life Insurance
Life insurance in Germany provides financial security for your family in the event of your death. Typically, people opt for voluntary life insurance, especially after acquiring a mortgage or starting a family. This is particularly important when one person primarily supports the family financially. The main purpose of life insurance is to prevent leaving your loved ones in financial hardship upon your death.
Life insurance plans vary based on individual circumstances and can be quite complex. Factors such as your age, lifestyle, desired coverage duration, and amount determine the specifics of the policy.
When I bought a life insurance, I was looking for the provider who primarily provides English support and flexibility. Therefore, I choose Feather Insurance as they offer term life insurances particularly designed for expats.
Income Protection Insurance
Income protection insurance, also known as occupational disability insurance (Berufsunfähigkeit) in Germany, is considered a crucial voluntary insurance by local insurance brokers. This insurance shields you from income loss if you're unable to work long-term due to different reasons, such as accidents resulting in physical disabilities or extended recovery periods due to conditions like burn-out. These life events can significantly impact your financial stability.
The income protection insurance is primarily a German insurance product. Although it is less common among expats, it is recommended (only) if you plan to spend most of your work life in Germany.
For expats looking for worldwide coverage, Getsafe offers an income protection insurance. It's user-friendly, entirely digital, and available in English, providing a viable choice for those seeking comprehensive coverage beyond Germany.
Conclusion
Insurance in Germany is a complex and important topic that expats need to understand and consider carefully. Having the right insurance coverage can make a big difference in your quality of life, security, and peace of mind in Germany. However, finding the best insurance options for your needs and budget can be challenging and time-consuming.
That is why we recommend you to do your research, compare different providers and plans, and consult an independent broker or an online comparison tool before you make any decision. We hope this article has given you some useful information and guidance on the 8 must have insurances for expats in Germany.
Frequently asked questions
What are the essential insurances expats need in Germany
Expats in Germany must have health insurance (public or private), and can consider different other insurances such as liability insurance, home contents insurance, personal accident insurance, and possibly other coverages based on individual needs.