German insurance terms from A to Z

AnzeigepflichtDuty of disclosure

The duty to answer all of the insurer's questions before the contract is concluded – for example about your health or previous claims – completely and truthfully (§ 19 VVG). Breaches can cost you your cover.

Beitrag (Prämie)Premium

The price of your cover, payable monthly, quarterly, half-yearly or annually. In German insurance law it is also called Prämie.

BeitragsbemessungsgrenzeContribution assessment ceiling

The income limit up to which social insurance contributions are calculated; no further contributions are due on income above it. In 2026 it is €5,812.50 a month for health and long-term care insurance. Not to be confused with the compulsory insurance threshold.

BeratungsdokumentationRecord of advice

A written summary of the advice session with your wishes and needs and the reasons for the recommendation. Intermediaries generally have to hand it over before the contract is concluded (§§ 61, 62 VVG).

BerufsunfähigkeitOccupational disability

Applies when, for health reasons, you can no longer work in your last occupation – in many policies if this is expected to last at least six months to a degree of at least 50%. The definition in your policy is decisive.

DeckungssummeLimit of cover

The maximum amount the insurer pays per claim or per insurance year; in property and life insurance it is usually called Versicherungssumme. If it is too low, you pay the rest yourself.

ElementarschadenNatural hazard damage

Damage caused by natural hazards such as flooding, heavy rain, earthquakes, landslides, snow load or avalanches. Buildings and contents policies often cover it only through an add-on.

ErstinformationInitial information

Information that insurance intermediaries must provide in text form at the first business contact: who they are, whether they act as a broker or an agent and their number in the intermediary register (§ 15 VersVermV).

ErwerbsminderungsrenteReduced earning capacity pension

A statutory pension paid if, for health reasons, you can work less than six hours a day on the general labour market (partial) or less than three hours (full). Your previous occupation does not matter. As a rule, you need at least five years of insurance, including three years of compulsory contributions within the last five years.

eVB-NummerElectronic insurance confirmation (eVB)

A seven-character code with which the motor insurer confirms cover to the vehicle registration office. A vehicle cannot be registered without it.

FamilienversicherungFamily insurance

In statutory health insurance, spouses, registered partners and children with no or low income of their own are covered free of charge under certain conditions if they live in Germany. In private health insurance, every insured person pays their own premium.

Gesetzliche Krankenversicherung (GKV)Statutory health insurance

Solidarity-based health insurance provided by the Krankenkassen. Contributions depend on income – the general rate plus the fund's additional contribution – not on age or health.

GliedertaxeLimb schedule

A table in private accident insurance that sets fixed degrees of disability for the loss or loss of function of body parts and sensory organs, such as a hand or an eye.

HaftpflichtLiability

The legal obligation to compensate for damage you have caused to someone else. Liability insurance checks such claims, pays justified ones and defends you against unjustified ones.

HausratHousehold contents

All movable items in a household, such as furniture, clothing, electronics, books and valuables. They are covered by household contents insurance; the building itself is covered by residential building insurance.

Kfz-HaftpflichtMotor third-party liability

Compulsory insurance for vehicle keepers. It pays for damage you cause to others with your vehicle – but not for damage to your own vehicle.

KrankenkasseStatutory health insurance fund

An institution providing statutory health and long-term care insurance, such as an AOK or a substitute, company or guild fund. Most funds are open to everyone; their benefits are largely set by law.

KündigungsfristNotice period

The minimum time between the insurer receiving your cancellation and the end of the insurance year – usually three months, and usually one month for car insurance.

LeistungsausschlussExclusion

Events or causes that the policy expressly does not cover, for example damage caused intentionally. Exclusions are set out in the policy terms and can also be agreed individually.

NeuwertReplacement value (new for old)

The amount needed to buy a new item of the same kind and quality. Household contents insurance usually pays the replacement value, without deduction for age or wear.

ObliegenheitPolicyholder's obligation

A rule of conduct for the policyholder before or after a loss, such as reporting damage promptly, limiting the loss or following safety rules. Breaching it can reduce your benefit or even leave you with no payout (§ 28 VVG).

OmbudsmannOmbudsman

An independent dispute resolution body, free of charge for consumers, for disputes with an insurer: the Versicherungsombudsmann for most types of insurance and the PKV-Ombudsmann for private health and long-term care insurance.

PflegegradCare level

An assessment of care needs on a scale from 1 to 5, made after an evaluation by an assessor. Long-term care insurance benefits depend on the care level.

PflegeversicherungLong-term care insurance

Compulsory insurance that pays a care allowance or care services if you need long-term care. It covers only part of the costs; the rest is paid by the person needing care or by supplementary private insurance.

Private Krankenversicherung (PKV)Private health insurance

Health insurance from private insurers, for example for the self-employed, civil servants and employees above the compulsory insurance threshold. Premiums depend on age at entry, health and the chosen plan, not on income.

RisikozuschlagRisk surcharge

An extra premium the insurer charges because of an increased risk, for example a pre-existing condition or a dangerous hobby.

RückstufungDowngrading of the no-claims class

After a claim paid under your motor liability or fully comprehensive cover, you move down to a lower no-claims class and your premium rises. Paying for small damage yourself can therefore be worthwhile.

Schadenfreiheitsklasse (SF-Klasse)No-claims class

A classification in car insurance based on the number of claim-free years. The higher your no-claims class, the lower your premium usually is.

SchadenmeldungClaim notification

Reporting a loss to the insurer. It should be done without undue delay; some policies set fixed deadlines.

SelbstbeteiligungExcess (deductible)

The part of a loss you pay yourself. A higher deductible usually lowers the premium.

SonderkündigungsrechtSpecial right to cancel

The right to end a policy outside the normal notice period, for example after a premium increase without better benefits or after a claim. A one-month deadline usually applies.

TeilkaskoPartial comprehensive cover

Optional cover for your own vehicle, for example against theft, fire, glass breakage, storm, hail, flooding and collisions with game such as deer or wild boar. Accidents you cause yourself are not covered.

UnterversicherungUnderinsurance

Occurs when the sum insured is significantly lower than the insured value – for household contents, the replacement value of everything you own. The insurer may then reduce compensation proportionally – even for small losses (§ 75 VVG). Many household contents policies waive this if a set amount per square metre is agreed.

VersichererInsurer

The insurance company that takes on the risk and pays in the event of a claim. In Germany, insurers are mostly supervised by BaFin.

Versicherte PersonInsured person

The person whose life, health or ability to work is insured. They need not be the policyholder, for example when parents insure their child.

Versicherungsbedingungen (AVB)Policy terms and conditions

The general terms and conditions (AVB) set out what is covered, what is not and which obligations apply. They are part of the contract; unclear clauses are interpreted against the insurer.

VersicherungsmaklerInsurance broker

An intermediary who acts on behalf of the customer and compares offers from several insurers. Brokers need a licence under § 34d(1) GewO and are listed in the intermediary register.

VersicherungsnehmerPolicyholder

The person or company that takes out the policy and owes the premium. They hold the rights under the contract, such as the right to cancel.

VersicherungspflichtgrenzeCompulsory insurance threshold

The income threshold in health insurance, also called Jahresarbeitsentgeltgrenze: €77,400 a year in 2026. Employees whose regular salary exceeds it are no longer subject to compulsory statutory insurance and can take out private insurance.

Versicherungsschein (Police)Policy document

The document confirming the contract with its key details: insured persons and risks, premium, start date, term and applicable terms. If it differs from your application, you can object within one month (§ 5 VVG).

VersicherungsvertreterInsurance agent

An intermediary who works on behalf of one or more insurers and offers their products. Unlike a broker, an agent legally represents the insurer's side.

VollkaskoFully comprehensive cover

Includes partial comprehensive cover plus damage to your own vehicle from accidents you cause and from vandalism. Often useful for new, valuable or financed vehicles.

WartezeitWaiting period

A period after the policy starts during which no or only limited benefits are paid – typical, for example, in dental and legal expenses insurance.

WiderrufsrechtRight of withdrawal

The right to withdraw from a new insurance contract within 14 days without giving reasons, or within 30 days for life and occupational disability insurance (§§ 8, 152, 176 VVG). The period only starts once you have received all contract documents and the withdrawal notice.

ZeitwertCurrent value

Replacement value minus depreciation for age and wear. Some policies pay only the current value, which can be well below the price of a new item.

ZusatzbeitragAdditional contribution

A contribution that each statutory health insurance fund sets in addition to the general contribution rate. If your fund raises it, you have a special right to cancel and can switch to another fund.

This content provides general orientation. Situations and benefits mentioned are examples; the specific need, policy terms and individual advice are decisive. It does not state a price, acceptance or cover decision.

Contact and content responsibility

Mahdi Barzkar

Owner and insurance broker authorised under section 34d(1) of the German Trade Regulation Act · Register number D-H3YB-K7WLO-18.

Legal and register details (German)