Which insurance is mandatory in Germany?
Germany has several legally required insurances. Skip these and you face fines, denied registrations, or worse.
Health insurance (Krankenversicherung)
Mandatory for every resident. You need proof of health insurance to register your address (Anmeldung) and to get or renew a residence permit. Germany has two systems: public (GKV) and private (PKV).
Car liability insurance (KFZ-Haftpflicht)
Required for every registered vehicle. You cannot register a car without an EVB number, your proof of insurance. Applies to cars, motorcycles, mopeds, and e-scooters.
Automatically deducted from salary
Pension insurance (Rentenversicherung), long-term care insurance (Pflegeversicherung), and unemployment insurance (Arbeitslosenversicherung) are deducted automatically if you are employed. Nothing to arrange.
Professional liability (Berufshaftpflicht)
Mandatory for specific professions: doctors, lawyers, architects, tax advisors, and notaries. Dog liability insurance (Hundehaftpflicht) is required in most German states.
Everything else is optional. But some optional insurances are strongly worth getting.
Health insurance: GKV vs PKV
This is the biggest insurance decision you will make in Germany. The two systems work very differently.
Public health insurance (GKV)
Most people in Germany have public health insurance. According to GKV-Spitzenverband, about 75 million people (roughly 89% of the population) are covered by around 93 statutory health insurance funds (Krankenkassen) as of early 2026.
GKV contribution rates 2026
Source: AOK Rechengroessen 2026, zusatzbeitrag.net
If you earn below the annual income threshold (Versicherungspflichtgrenze / JAEG), public insurance is mandatory. In 2026, that threshold is 77,400 euros per year, or 6,450 euros per month (source: PKV Verband). Up from 73,800 euros in 2025.
GKV covers doctor visits, hospital stays, prescription medications, basic dental care, mental health treatment, maternity care, and preventive checkups. Family members without income can be covered for free through Familienversicherung. That is a big advantage over private insurance.
Private health insurance (PKV)
An option if you earn above 77,400 euros per year, if you are self-employed, or if you are a civil servant (Beamter).
PKV costs 2026
Source: PKV Verband, Verivox 2026
PKV can make sense if you are young, healthy, earn well, and do not plan to have a family in Germany. Coverage is often better: shorter waiting times, private hospital rooms, broader dental coverage.
Think twice if you plan to have children (each child needs a separate PKV policy), if you might earn less in the future, or if you plan to stay in Germany long-term. GKV premiums scale with income and include free family coverage. PKV premiums scale with age and health status.
Car insurance: the three levels
If you own or register a car in Germany, you need car insurance. There are three levels, and only the first one is mandatory.
| Level | What it covers | Required? |
|---|---|---|
| Haftpflicht (liability) | Damage you cause to other people and their property | Yes, mandatory |
| Teilkasko (partial) | Theft, storm, hail, fire, glass breakage, animal collisions | No |
| Vollkasko (full) | Everything above plus damage to your own car in accidents, vandalism | No |
According to Statista, the average annual premium for KFZ-Haftpflicht was about 256 euros in 2023. The Statistisches Bundesamt reported a 10.9% increase in car insurance premiums in 2025. Expect to pay somewhere in the range of 280 to 320 euros per year in 2026, depending on your profile.
Your price depends on your claims-free class (Schadenfreiheitsklasse), your car's type class (Typklasse), your regional class (Regionalklasse), your age and driving experience. New drivers without a German history get placed in the worst classes. Some insurers accept foreign no-claims bonuses, but not all.
Liability insurance: the best deal in German insurance
Personal liability insurance (Privathaftpflicht) is not legally required. But ask any German, and they will tell you it is the most important voluntary insurance you can get.
In Germany, you are personally liable for damage you cause, with no upper limit. Accidentally damage someone's property? Bump into a cyclist who breaks their arm? Flooding in your apartment that damages the flat below? You pay. Out of your own pocket. The full amount.
Liability insurance costs 2026
Source: Finanztip 2026
Many landlords in Germany require tenants to have liability insurance. Even if yours does not, get it anyway. You can find affordable personal liability insurance from about €3/month. The online application takes about 5 minutes. If you are an expat, see our dedicated guide to liability insurance for expats in Germany.
Household and building insurance
Household insurance (Hausratversicherung)
Covers your belongings inside your home against theft, fire, water damage, and storms. Does not cover the building itself, just furniture, electronics, clothing, and other possessions.
According to CHECK24, an 80 square meter apartment costs roughly 25 to 54 euros per year to insure, depending on the city. Munich tends to be cheaper (around 21 euros per year for basic coverage), while Hamburg and Berlin run higher at around 43 euros per year.
Worth it if you have valuables and electronics. Less necessary if you are in a furnished student room with minimal belongings.
Building insurance (Wohngebaeudeversicherung)
For property owners only. Protects the physical structure against fire, storm, water damage. Most mortgage lenders require it. If you are renting, your landlord carries this.
Compare building insuranceLife and pension insurance
Term life insurance
Pays a lump sum to your family if you die during the policy term. Makes sense if you have dependents. Compare rates in our term life insurance comparison for expats, or if you need fast approval, see our guide to getting life insurance quickly.
CompareDisability insurance (BU)
Pays monthly benefits if you cannot work due to illness or accident. Important for physical jobs. Expect 50 to 150 EUR/month.
ComparePension insurance
Options include Riester-Rente (up to 475 EUR annual subsidy for employees), Ruerup-Rente (tax-deductible for self-employed), and private plans.
CompareInsurance by life situation
Not everyone needs the same coverage. Here is a practical breakdown.
Just arrived
- Health insurance - needed for Anmeldung
- Liability insurance - costs almost nothing
- Car insurance - only if buying a car
Everything else can wait a few weeks. Once settled, also consider accident insurance for expats to cover leisure-time accident risks not included in statutory insurance.
Student
- Health insurance (mandatory): GKV student tariff ~110 to 120 EUR/month
- Liability: 20 to 30 EUR/year
- Household: optional
Skip life, disability, and pension insurance.
Employee
- Health: auto-enrolled via employer
- Liability: strongly recommended
- Household: recommended
- BU disability: worth considering under 35
Family with children
- Health: GKV gives free family coverage
- Liability: family policy, 50 to 100 EUR/year
- Term life: recommended for main earner
- Household: recommended
How to compare and switch providers
German insurance can be compared online. Most comparison tools are in German, but checkalle.de offers comparisons in English for the main insurance types.
Switching health insurance
You can switch your GKV provider with two months notice, usually at the end of any month. Minimum membership period is 12 months. Switching from PKV back to GKV is much harder. If you are over 55, it is practically impossible.
Switching car insurance
Most contracts run January to December. The cancellation deadline is November 30 (Stichtag). If your insurer raises your premium, you get a special cancellation right (Sonderkuendigungsrecht) for one month after the notice.
Switching other insurance
Most liability, household, and other contracts can be cancelled with three months notice before the contract anniversary.
German insurance terms you should know
| English | German | What it means |
|---|---|---|
| Liability insurance | Haftpflichtversicherung | Covers damage you cause to others |
| Car insurance | KFZ-Versicherung | Vehicle insurance (all types) |
| Health insurance (public) | Gesetzliche Krankenversicherung (GKV) | Statutory health insurance |
| Health insurance (private) | Private Krankenversicherung (PKV) | Private health insurance |
| Supplementary contribution | Zusatzbeitrag | Extra charge by your Krankenkasse |
| Income threshold | Versicherungspflichtgrenze (JAEG) | Income level above which you can choose PKV |
| Household insurance | Hausratversicherung | Covers your belongings at home |
| Claims-free class | Schadenfreiheitsklasse (SF-Klasse) | Bonus for accident-free years |
| EVB number | Elektronische Versicherungsbestaetigung | Digital proof of car insurance |
| Deductible | Selbstbeteiligung | Amount you pay before insurance kicks in |
| Cancellation | Kuendigung | Ending your insurance contract |
| Special cancellation right | Sonderkuendigungsrecht | Right to cancel after premium increase |