Main types of insurance in Germany & how essential they are

Thinking about insurance in Germany ist not the most exciting topic to address, but it is important to plan ahead some coverage. You never know what life has planned for you so a good coverage makes sure you are not left penniless after something happens.

Although some types of policies may differ from what you know, most will be similar. This is an overview to the types of insurances you can subscribe to in Germany, ranked by how essential they are.

Feel free to ask questions in the comments section. I answer each question personally.

Overview for Germany- which insurances are mandatory, recommended or optional?

This guide gives details about each type of policy, but here is an overview:

Health insurance (Krankenversicherung) mandatory and essential

Proper health insurance is compulsory for all German residents. The German system is split between public & private insurance companies.

• 90% of German residents have public health insurance; costs are set by your income.
• If your earn more than a certain level, if you are not eligible to public, you can go for private, where costs are set by your health profile.
• Most public should stay with public as going with private has serious life consequences.
• Visa applicants can signup for special policies for a cheaper rate, but cannot renew a visa without local insurance.

It’s a difficult topic to approach. This is why you can read a detailed guide on health insurance in Germany here.

Liability insurance (Haftpflichtversicherung) – highly recommended

Personal liability insurance protects you against damages made to third-party property, persons or income, when involved in an accident.

• Next to health insurance, this type of insurance in Germany is highly necessary. Accidents happen everyday with damages sometimes costing millions of euros.
• In most EU countries, liability insurance is actually compulsory, not in Germany. However, the vast majority of Germans have one (83%).
• As parents or pet owners, you are also responsible for your pets or kids too.
• It only costs a few euros per month, it’s worth it.

I have written a dedicated post about liability insurance in Germany this way.  There are now trusworthy english-speaking providers to consider.

Home contents insurance (Hausratversicherung) – Recommended for renters and homeowners

Home contents or household insurance is covering damages & theft made to your movable items at home. We are talking about furniture, appliances, jewelry, clothes, etc.

• It covers your belongings in case of fire, water damages and theft happening at home.
• Some policies cover bikes or computer too, but make sure to read the fine prints.
• Most Germans have this (76%).
• Household insurance does not cover the actual walls, doors, windows or roof in your home. That is something else: Gebäudeversicherung, something we cover later in this post.
• It only costs a few euros per month, so it makes sense.

I have written a detailed guide about home contents insurance for Germany (sometimes known as house insurance or household insurance). It includes tips on how to pick a good policy, recommendations with English-speaking providers.

Dental insurance (Zahnzusatzversicherung) – recommended for better dental care coverage

Dental care is one of the more costly aspect of health care.

• Standard coverage offered by public health insurance is sometimes not enough when you have high dental care needs, preconditions, etc.
• It’s a good idea to sign-up for it if you plan to have implants, if your lifestyle is damaging your teeth a lot, if you will need parodontologie, or crowns a lot.
• A lot of Germans have complementary dental insurance.

You can read whether or not you really need one in this good overview post on dental insurance in Germany.

Broken glass insurance (Glasversicherung) – optional, only necessary for specific cases

Covers the cost of repairing or replacing broken glass in windows, doors, glass furniture (e.g., tables, mirrors), and sometimes even ceramic stovetops. It’s useful for homes with large glass surfaces, skylights, or winter gardens, as standard household insurance (Hausratversicherung) typically does not cover glass breakage.

• Price: €2–€10/month, depending on property size and type of glass covered.
• Who it is for: Homeowners and renters with large windows, glass doors, or expensive glass fixtures. Less necessary for standard apartments without significant glass elements.

Car insurance (Kfz-Versicherung) – mandatory for car owners

Anybody owning & driving a vehicle in Germany must have adequate insurance.

• There are 3 types of car insurance in Germany: Haftpflicht (third-party coverage), Vollkasko (comprehensive coverage) & Teilkasko (partial coverage).
• Haftpflicht only covers damages made onto other vehicles than yours in case of an accident. That’s the legal minimum.
• Teilkasko includes Hafplticht as well as damages from theft , fire, broken glass, extreme weather & wilde animals. This type of policy is often picked for used cars.
• Vollkasko includes Teilkasko as well as damages made to you or your vehicle even if the accident was your fault, as well as vandalism & hit-and-runs. This type of policy is often picked for new or leased cars.

This detailed post about car insurance in Germany gives you a lot more insights into this topic. It will help you decide which insurance is best for you and give you tips on how to get the best deal to save money. We also show you how to use your past driving record in your home country to get an even better price for your policy.

Accident (Unfallversicherung) – useful for high-risk jobs or activities

Your accident insurance in Germany. This makes sure that you have enough financial means in case you become handicapped after a grave accident.

• It usually comes with a one-off lump sum, as a way to cover immediate costs associated with adapting your home & lifestyle to your temporary or permanent handicap.
• Psychological side effects (PTSD, burnout, depression etc) are not covered.
• Price: €10–€30/month.
• Who it is for: Self-employed, active individuals (e.g., sports enthusiasts), and people without disability insurance.

Pet insurance (Haftpflicht- & Tierkrankenversicherung)

Pet insurance in Germany is divided into liability insurance (mandatory for dogs in some states) and health insurance (optional but useful for vet costs).

1. Pet liability insurance (Tierhalterhaftpflicht) – nandatory in some states, highly recommended

• Use: Covers damages if your pet injures a person, another animal, or damages property.
• Price: €5–€15/month.
• Target audience:
  • Mandatory for dog owners in Berlin, Hamburg, Lower Saxony, Saxony-Anhalt, and Thuringia.
  • Recommended for all dog owners and horse owners.

2. Pet health insurance (Tierkrankenversicherung) – recommended for costly vet care

• Use: Covers surgeries, treatments, and medications.
  • Surgery insurance (OP-Versicherung): Covers operations (€10–€30/month).
  • Full health insurance: Covers vet visits, treatments, and surgeries (€30–€60/month).
• Target audience:
  • Dog and cat owners, especially those with high-risk breeds.
  • Owners of older pets, as vet costs increase with age.

Legal insurance (Rechtsschutzversicherung) – highly recommended

Covers legal fees in disputes related to rental issues, employment conflicts, contract disagreements, or personal legal matters. This is particularly useful in Germany, where tenant rights are strong, employment contracts are complex, and legal proceedings can be expensive.

• Price: €15–€30/month, depending on coverage (e.g., rental law, work-related issues, traffic incidents, or general personal legal matters). Some policies require waiting periods before full coverage.
• Who is it for: Expats renting apartments, employees unfamiliar with German labor laws, freelancers, and anyone who wants legal protection without high costs.

If you are interested, you can look into it with English-speaking providers like Feather. Read a full guide about legal insurance in Germany this way.

Bike insurance (Fahrradversicherung) – recommended for frequent cyclists

Protects against theft, vandalism, and sometimes damage due to accidents. Given the high number of bicycle thefts in German cities, this insurance is very useful for expensive bikes or e-bikes. Some policies also cover liability if you damage property or injure someone while cycling.

• Price: €5–€15/month, depending on bike value and coverage type. E-bike insurance can be higher. Some household insurance policies (Hausratversicherung) include bike theft coverage, but usually with limitations.
• Who is it for: Daily cyclists, e-bike owners, or those living in theft-prone areas like Berlin, Hamburg, or Cologne (or any big city really…).

Life insurance (Lebensversicherung) – important for families

Provides financial support to dependents in case of death. In Germany, this is especially relevant for families relying on a single income, homeowners with mortgages, or anyone wanting to secure their loved ones’ financial future. There are two main types: term life insurance (Risikolebensversicherung) and whole life insurance (Kapitallebensversicherung), the latter including a savings component.

• Price: Term life insurance starts at around €10–€25/month, depending on age, health, and coverage amount. Whole life insurance is significantly more expensive.
• Who it is for: Parents, couples with financial commitments, or anyone wanting to ensure financial stability for dependents.

Read a full guide about life insurance in Germany here.

Travel insurance (Reiseversicherung) – recommended for frequent travelers

Covers emergency medical expenses, trip cancellations, lost luggage, or delays when traveling. German public health insurance (Gesetzliche Krankenversicherung) usually covers medical costs within the EU but not worldwide. Travel insurance is crucial for non-EU trips and offers peace of mind for unexpected situations.

• Price: Single-trip policies start at €10–€30 per trip, while annual policies range from €50–€150/year, depending on coverage and destination.
• Who it is for: Expats frequently traveling outside the EU, digital nomads, business travelers, or those visiting family abroad.

Occupational disability (Berufsunfähigkeits­versicherung) – important for professionals

Occupational disability insurance is available if you are no longer able to do your current job for at least 50 percent of the time for at least 6 months. It pays you a monthly pension for the duration of your occupational disability. The amount of that pension is set in the contract, at least 80% of your current monthly income.

• This type of policy covers you even if the impairment isn’t the result of an accident.
• It’s worth considering if you can’t do your job remotely or if you rely on the use of your hands for you job. Even developers or surgeons can be at risk there, if they can’t use a computer anymore.
• This is also recommended for freelancers or people with a mortgage.
• Psychological side effects (PTSD, burnout, depression etc) are covered.
• Price: €30–€100/month, depending on age, profession, and health.
• Target audience: Employees, self-employed professionals, and anyone financially dependent on their income.

Building (Wohngebäudeversicherung) – Mandatory for mortgaged homes, highly recommended for homeowners

If you get far enough to buy your own flat, you will need that to cover the actual building where you live in. It covers walls, roofs and basement. This is also important if you rent your flat out. Your tenant’s insurance doesn’t cover the walls he is living in. Covers damage to the physical structure of a property due to fire, storms, water damage (burst pipes), and natural disasters. It is often required if you have a mortgage. Some policies include additional coverage for flooding or vandalism.

• Price: €20–€100/month, depending on property size, location, and coverage level.
• Who it is for: Homeowners, especially those with a mortgage. Renters do not need this, as landlords are responsible.