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 before making a final choice on your insurance provider.
German health insurance
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:
- Pension insurance
- Long-term care insurance
- Occupational accident insurance
- Unemployment insurance
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.
Vehicle insurance in Germany
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.
German private insurance
While having other types of insurance cover is optional, it is a good way to arm yourself against any mishaps that life might throw your way. Different types of private insurance are available and cover a range of different situations, including life insurance, contents insurance, travel insurance, insurance for pets and liability insurance.