Insurance in Germany: Mandatory, Essential and Additional Policies

Insurance in Germany falls into three groups: policies required by law, policies that are practically necessary in everyday life, and additional policies for specific risks. A newcomer does not need to arrange everything at once. The important thing is to understand what is indispensable for living or working, which insurance protects against major financial losses, and which policies only make sense in a particular situation.

The prices below are indicative for 2026. The actual premium depends on age, occupation, health, place of residence, excess, insured amount, family composition, and the terms of the particular contract.

Which insurance policies should come first

Priority	Insurance	Who needs it
Mandatory	GKV or PKV health insurance	Everyone living in Germany
Mandatory	KFZ-Haftpflichtversicherung	Owners of cars and motorcycles
Mandatory for employees	State pension insurance	Most employees
Very important	Privathaftpflichtversicherung	Almost all adults and families
Often useful	Hausratversicherung	Tenants and homeowners with valuable belongings
Situation-dependent	Berufsunfähigkeitsversicherung, Rechtsschutz, Zahnzusatz, Reisekrankenversicherung	Depends on income, family, health, occupation, and plans

Mandatory insurance

Health insurance: GKV or PKV

Health insurance covers doctor visits, hospital treatment, and a substantial part of medication costs. Germany has two main options:

• Statutory health insurance — Gesetzliche Krankenversicherung (GKV). Most residents choose it. Contributions depend on income rather than age or diagnosis. A non-working spouse and children can be included in Familienversicherung without a separate contribution if the conditions are met.
• Private health insurance — Private Krankenversicherung (PKV). It is more often relevant to self-employed people, civil servants, and employees with income above the Versicherungspflichtgrenze. In 2026, this threshold for employees is €77,400 gross per year or €6,450 per month.

In 2026, the total GKV rate is 14.6% plus the Zusatzbeitrag charged by the chosen fund. The average Zusatzbeitrag is 2.9%. Pflegeversicherung is added separately: the basic rate is 3.6%, and 4.2% for people over 23 without children. For employees, contributions are generally split between the employee and employer.

PKV is calculated differently: the price depends on age, health, the selected tariff, and the scope of cover. Private insurance can be expensive for a family because each person is insured separately.

Motor insurance

KFZ-Haftpflichtversicherung is mandatory for car and motorcycle owners. Without it, a vehicle cannot be registered and number plates will not be issued.

The mandatory part covers damage the driver causes to other people, vehicles, or property. It does not repair the at-fault driver’s own car. For that, voluntary options are added:

• Teilkasko — partial comprehensive cover, for example against theft, hail, fire, or collisions with animals;
• Vollkasko — fully comprehensive cover, including many cases of damage to your own vehicle.

The price depends on the region, vehicle, driving experience, Schadenfreiheitsklasse, annual mileage, parking location, and excess.

Pension insurance

For most employees, contributions to statutory pension insurance are deducted automatically from salary. The rate is 18.6%, with the employee and employer generally paying half each.

Self-employed people in some professions may be required to pay pension contributions, while in other cases they do so voluntarily. Since the state pension often does not cover every need in retirement, many people also use private pension products. Choose them carefully: fees, tax rules, and the policy term strongly affect the outcome.

Insurance policies often worth taking out

Personal liability — Privathaftpflichtversicherung

Privathaftpflichtversicherung (PHV) covers damage you accidentally cause to other people or their property. It is one of the most useful voluntary insurance policies in Germany because civil liability can be very expensive.

Examples include:

• damaging someone else’s phone or laptop;
• a child scratching a neighbour’s bicycle or car;
• flooding the flat below;
• breaking an item in rented accommodation or a hotel;
• accidentally injuring someone.

A standard family policy often costs around €5–15 per month. Check whether the contract covers Mietsachschäden, keys, children, a partner, volunteering, and damage caused by pets. Broken glass often requires a separate Glasversicherung option.

Dental insurance — Zahnzusatzversicherung

Basic GKV covers necessary treatment from a dentist, but expensive materials, implants, prosthetics, cosmetic services, and professional cleaning are often paid for partly or entirely out of pocket.

Zahnzusatzversicherung may cover:

• professional cleaning;
• more expensive fillings and inlays;
• crowns, bridges, and implants;
• orthodontics under the policy terms.

A policy for an adult without a serious treatment history can cost from several tens of euros per month. The older a person is and the more known dental issues they already have, the more expensive or restricted the contract can be. Illnesses and treatment that began before the policy was taken out are often not covered.

Home and belongings: Hausrat and Wohngebäude

Hausratversicherung protects movable belongings in a flat or house: furniture, electronics, clothing, bicycles, and personal items. It typically covers fire, water damage, burglary, storms, and other contractual risks. For a tenant, it is one of the clearest policies: if the home is damaged, insurance may cover belongings and temporary accommodation.

The price depends on the floor area, address, insured amount, bicycle, excess, and additional options. For a standard flat, this is often around €5–20 per month, but an exact calculation requires the address and terms.

Wohngebäudeversicherung is needed by homeowners and is often required by a bank for a mortgage. It covers the building itself, not the furniture inside. For a flat in an apartment building, building insurance is usually arranged for the entire building through the Eigentümergemeinschaft.

Legal expenses cover — Rechtsschutzversicherung

Rechtsschutzversicherung covers a lawyer, court costs, and part of the related expenses within the policy limits. It can be useful in disputes with an employer, landlord, other road users, sellers, or public authorities.

Before taking it out, review the modules: Privat, Beruf, Verkehr, and Wohnen. Many contracts have a waiting period, excess, and exclusions. The price often starts at around €15–30 per month, but a full family package can cost more.

Disability insurance — Berufsunfähigkeitsversicherung

Berufsunfähigkeitsversicherung (BU) pays a monthly amount if someone can no longer work in their occupation because of illness or injury. This is especially important if a family depends on one income, there is a mortgage, or the occupation requires high qualifications.

The price depends on age, health, occupation, benefit amount, and policy term. The earlier BU is arranged and the lower the occupational risk, the easier it is to obtain reasonable terms. The health questionnaire must be completed very accurately: errors can lead to a refusal to pay.

Life insurance — Risikolebensversicherung

Risikolebensversicherung (RLV) pays money to a family or other recipient if the insured person dies during the policy term. It is not savings insurance but protection against financial risk.

RLV is especially appropriate where there are children, a mortgage, a joint loan, or one main breadwinner. The premium depends on age, health, smoking, occupation, term, and insured amount.

Insurance depending on your situation

Travel insurance — Reisekrankenversicherung

Reisekrankenversicherung covers medical expenses abroad and often medical transport back to Germany. German GKV in the EU generally works through the EHIC only within the local system, while private bills and repatriation are often not covered.

An annual travel policy is usually inexpensive, often around €10–30 per year per person or more for a family. Before buying, check the maximum duration of a single trip, exclusions for chronic illnesses, and cover outside Europe.

Accident insurance — Unfallversicherung

Unfallversicherung pays an amount for disability or serious consequences of an accident according to the policy table. It does not replace BU, because many cases of incapacity for work are caused by illness rather than accidents.

The policy can be useful for children, people with hazardous hobbies, or people who cannot obtain BU. Standard tariffs are often in the range of €10–25 per month, but much depends on the insured amount and benefit progression.

Bicycle insurance — Fahrradversicherung

Fahrradversicherung can make sense for an expensive bicycle or e-bike. It may cover theft, accident repairs, vandalism, the battery, and roadside assistance.

The price depends on the bicycle’s value, the city, lock, storage, excess, and package of options. For an inexpensive bicycle, Hausratversicherung with a bicycle option may be enough; an e-bike often needs a separate contract.

Insurance for animals

Hundehaftpflichtversicherung covers damage a dog causes to other people or property. In some federal states it is mandatory for all dogs; in others it is mandatory only for certain breeds or situations. Conditions must be checked with the state and municipality.

Tierkrankenversicherung or OP-Versicherung covers veterinary costs. Full medical insurance for an animal can be expensive, especially for older animals or breeds with risks. It is often more advantageous to compare stand-alone surgery insurance with a full tariff.

What can usually wait

Not all policies are equally necessary. Insurance for luggage, mobile phones, glasses, individual gadgets, musical instruments, sports equipment, trip cancellation, or private unemployment can be useful, but should be taken out only after assessing the risk and price.

In Germany, you also encounter:

• Reiserücktrittskostenversicherung — trip cancellation;
• Reisegepäckversicherung — luggage;
• Tauchgepäckversicherung — diving equipment;
• Pferdekrankenversicherung — horse treatment;
• Tierlebensversicherung — animal life insurance;
• Jagd- und Sportwaffenversicherung — hunting and sporting weapons;
• Golfversicherung — golf equipment;
• Musikinstrumentenversicherung — musical instruments;
• Handyversicherung — mobile phone;
• Brillenversicherung — glasses;
• Private Arbeitslosenversicherung — private protection against job loss.

How to choose policies without overpaying

1. First cover the mandatory items: health insurance, motor insurance if you have a car, and pension contributions when working.
2. Then protect major risks: Privathaftpflicht, capacity to work, housing, family, loans.
3. Check for overlap: for example, a bicycle may be partly covered by Hausrat, while legal disputes may be covered only in the necessary Rechtsschutz module.
4. Compare not only the price, but also the insured amount, excess, exclusions, waiting periods, and cancellation process.
5. Do not conceal medical facts in PKV, BU, Zahnzusatz, life, and animal insurance contracts. Incorrect answers in a questionnaire can lead to a refusal to pay.

FAQ

Which insurance policies are mandatory for everyone?

Health insurance is mandatory for residents of Germany. Motor insurance is mandatory for vehicle owners. Pension insurance is mandatory for most employees and some self-employed professions.

Which voluntary insurance is the most important?

For most people, Privathaftpflichtversicherung is the first voluntary policy. It is comparatively inexpensive but protects against substantial claims for accidental damage to others.

Do I need to buy all insurance policies immediately after moving?

No. After health insurance and mandatory policies, proceed by risk: liability, income, housing, family, vehicle, animals, and travel. Additional policies should be arranged only where the potential loss is genuinely substantial.

Can I rely on average prices from the internet?

Only as a rough guide. Insurance tariffs are calculated individually, and a cheap contract may have low limits, major exclusions, or an inconvenient excess.