Guide · 2026
Only a few types of insurance are required by law in Germany – above all health insurance. Others are voluntary but protect you against losses that can follow you for a lifetime. This guide explains both, sets out the legal basis and deadlines and shows newcomers what matters in the first weeks.
Compulsory means the law requires the cover. Without it, you may face back payments, surcharges or even penalties, depending on the case. Which obligations apply to you depends on your residence, employment, vehicle and profession.
Compulsory for everyone resident in Germany – either statutory (§ 5 SGB V) or private (§ 193(3) VVG). Employees are usually covered by statutory health insurance. Only when their regular annual salary exceeds the compulsory insurance threshold – €77,400 in 2026 (€6,450 a month) – can they switch to private health insurance. Spouses and children with no or low income of their own are often covered free of charge through statutory family insurance.
It follows your health insurance: members of statutory health insurance are automatically covered by social long-term care insurance, while the privately insured need compulsory private long-term care insurance (SGB XI). It pays according to your care level (Pflegegrad) – but only part of the actual costs.
If you keep a car, motorbike or trailer that is used on public roads, you need motor liability insurance (Compulsory Insurance Act, PflVG). You cannot register a vehicle without an electronic insurance confirmation (eVB); instead of registration, e-scooters need an insurance sticker and mopeds an insurance plate. The legal minimum cover is €7.5 million for personal injury, €1.3 million for property damage and €50,000 for pure financial loss. Partial and fully comprehensive cover for your own vehicle are optional.
As an employee you are automatically covered by pension, unemployment and accident insurance; your employer registers you and pays the contributions. Statutory accident insurance applies at work, on the way to and from work and for occupational diseases – not in your free time. Most self-employed people are not covered by compulsory pension insurance and need to make their own provision; some professions are exceptions.
Several federal states require dog owners to have liability insurance – for all dogs in some states, only for certain dogs in others. Anyone flying a drone also needs liability insurance. Some professions must carry professional liability insurance, for example doctors, lawyers, tax advisers and insurance intermediaries.
No law requires the following cover, but it protects you against risks that could threaten your financial existence. Which of them you need depends on your family, housing, income and assets.
Even slight negligence can make you liable for damage to others – without any upper limit and, if necessary, with your assets and future income (§ 823 BGB). Personal liability insurance pays justified claims and defends you against unjustified ones. Consumer advocates consider it essential and recommend cover of at least €10 million; tenants should also check that damage to the rented home is included.
If illness or injury stops you from working, the statutory pension insurance pays at most a reduced earning capacity pension – usually only after five years of insurance. It is usually well below your previous income. What counts is not whether you can still work in your own profession, but how many hours a day you can still do any job on the general labour market. Private occupational disability insurance (BU) can close this gap. Premiums and acceptance depend mainly on your occupation, age at entry and health.
Replaces furniture, clothing, electronics and other movable belongings in your home after fire, escape of water, burglary, storm or hail – usually at replacement value. It makes sense if you could not replace your furnishings out of your own pocket after a total loss.
For owners of houses; for flats in a jointly owned building, the owners' association usually takes it out. It pays after fire, escape of water, storm and hail, and banks usually require it for a mortgage. Cover for natural hazards such as flooding or heavy rain is often a separate module – check it specifically.
Pays an agreed sum if the insured person dies during the term. Important for families and couples who depend on one income and to secure a property loan.
Statutory health insurance pays only to a limited extent abroad: in the EU and some other countries only within the local statutory system, in many other countries not at all – and never for repatriation to Germany. Travel health insurance closes this gap. If you travel to your country of origin, check that your policy covers it: some policies exclude countries whose citizenship you hold.
Rule of thumb: insure above all the risks that would overwhelm you financially. Small losses you could pay from savings do not need insuring – over the years you often pay more in premiums than you receive in benefits.
Not every point applies to everyone – skip what does not concern you. The order reflects urgency.
The key rules are set out in the Insurance Contract Act (VVG); your policy terms also apply.
If your insurer refuses to pay or you feel treated unfairly, first ask for the decision to be explained in writing and talk to the insurer or your broker. After that, independent bodies can help:
Ask questions if terminology or consequences are unclear. Our insurance glossary explains key German terms in plain English. Translated content is for guidance only; the documents provided and the agreed contract language are decisive for the policy.
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
Owner and insurance broker authorised under section 34d(1) of the German Trade Regulation Act · Register number D-H3YB-K7WLO-18.
For everyone resident in Germany: health insurance and, with it, long-term care insurance. Vehicle keepers need motor liability insurance. Employees are also automatically covered by pension, unemployment and accident insurance. Further obligations apply to dog owners in some federal states, to drones and to certain professions.
No, it is voluntary. But because you are liable without limit for damage you cause to others, it is considered one of the most important types of insurance.
Employees only once their regular annual salary exceeds the compulsory insurance threshold (2026: €77,400). If your first job in Germany already pays more than that, you can join statutory health insurance voluntarily within three months. The self-employed and civil servants can generally take out private insurance; whether they can join a statutory fund voluntarily depends, among other things, on previous insurance periods. Returning from private to statutory insurance is only possible under certain conditions and hardly at all from age 55.
By letter, fax or email, stating your policy number and the desired date – older policies may require a signed cancellation. Watch the deadline and ask for confirmation of receipt. Only cancel important cover once the new policy has been accepted.
Not automatically. Website translations are for guidance only. The specific policy documents and agreements are decisive.
Next step
Send a short request without health or contract details. We will contact you to agree on the next step.
