Living in Germany involves adapting to many rules, and one of the most important is the insurance system. Some are compulsory, while others can be a great help in case of unforeseen events.
In this guide, we explain the main types of insurance in Germany and how to choose the right ones.
Table of contents
Liability insurance (Haftpflichtversicherung)
This is one of the most important and affordable insurance policies in Germany. It protects you if you cause accidental damage to other people or their property.
For example, if you spill coffee on someone's laptop or if your bicycle collides with a parked car, this insurance will cover the costs.
💰 Approximate cost: From €5 per month.
📌 Compulsory? No, but highly recommended.
Household insurance (Hausratversicherung)
Covers damage to furniture and belongings inside your home in the event of fire, burglary or water leaks. It is especially useful if you live in a furnished flat or if you have valuables.
This insurance will also be very useful when you want to rent a flat, as it is a plus for the tenant if you have this insurance.
💰 Approximate cost: From €5-10 per month.
📌 Compulsory? No, but recommended.
Health Insurance (Krankenversicherung)
In Germany, health insurance is compulsory. You can choose between public health insurance (Gesetzliche Krankenversicherung, GKV) and private (Private Krankenversicherung, PKV).
Public insurance: Recommended for employees with a salary of less than €69,300 per year (2024). The contribution is calculated based on your salary.
Private insurance: It may be more beneficial for the self-employed, civil servants or high-income earners.
We have an article dedicated to this type of insurance. You can see it here: «Guide: Compulsory Health Insurance in Germany».»
💰 Approximate cost: From 14% of your gross salary (public) or from €200 (private).
📌 Compulsory? Yes.
Legal insurance (Rechtsschutzversicherung)
Covers the costs of lawyers and legal proceedings in case of legal disputes.
Example: You rent a flat and the landlord refuses to return your deposit for no reason. This insurance would help you cover the legal costs to get your money back.
💰 Approximate cost: From €15 per month.
📌 Compulsory? No.
Pet insurance
If you have a dog, you may need specific liability insurance.
It can be useful for example if your dog bites someone in the park and you need to cover the other person's medical costs.
💰 Approximate cost: From 5-20€ per month.
Bicycle insurance
Covers theft and damage to your bike, especially useful in cities with a high theft rate.
You leave your bike outside somewhere and, when you leave, you discover that it has been stolen. This insurance would help you to replace it.
💰 Approximate cost: From €5-15 per month, depending on the value of the bike.
Dental insurance
Covers dental treatment not covered by public health insurance, such as implants or orthodontics.
You need expensive dental treatment that is not fully covered by public insurance. This insurance could save you hundreds of euros.
💰 Approximate cost: From 10-30€ per month.
Disability insurance (Berufsunfähigkeitsversicherung)
If for some reason you are unable to continue working due to illness or accident, this insurance provides you with a monthly income. It is recommended for the self-employed or those who depend on their salary to live.
💰 Approximate cost: Depending on age and profession, from €20 per month.
📌 Compulsory? No, but recommended.
Motor insurance (Kfz-Versicherung)
If you have a car in Germany, you need this insurance. There are three types:
Civil liability (compulsory): Covers damage to third parties in the event of an accident.
Partially comprehensive: Covers theft, fire and other damage.
Fully sympathetic: Covers all damage, including damage caused by the owner.
💰 Approximate cost: From €100 per year, depending on the type of car and coverage.
📌 Compulsory? If you have a car, yes, at least the liability option.
Which insurances do you really need?
It will depend on your personal situation, but here is a quick guide:
✅ CompulsoryHealth insurance, car insurance (if you have one).
✅ Highly recommendedLiability insurance, home insurance.
✅ Optional depending on your situationLife, disability, legal, bicycle, dental, pet and travel insurance.
Taking the time to choose the right insurance can save you a lot of money and trouble in the future.
Do your research, compare prices and choose according to your needs.
If you have any questions or want to share your experience, leave us a comment.
