13 Types of Insurance in Germany Every Expat Needs

With over 90,000 customers, we’ve advised our share fair of expats on the most important types of insurance in Germany.

Here is what you will learn in this article:

• Which insurance are mandatory
• Which insurance we highly recommend
• The 3 insurances that cover the rest of your bases.
• As well as two bonus insurances for pet owners

Let’s get started. 

Which insurance types are mandatory in Germany?

There are 3 insurances legally required for German residents. These are:

• Health insurance
• Statutory pension insurance
• Car insurance (for those who want to drive)

Health insurance

Health insurance is mandatory. Not having health insurance can result in back payments, where you must pay for the months you spent uninsured. 

You have multiple health insurance options: usually, it’s either private or public. In some cases, you might want to sign up for expat health insurance.

Here’s a quick breakdown of these options:

Public health insurance

Public health insurance is mandatory for everyone earning less than €69,300 gross per year (in 2024). 

It offers good coverage for all standard treatments:

• Doctor visits
• Hospital stays
• Medication
• Preventive care
• Maternity care
• Sick pay

The average cost for employees is around €350 to €450 a month, while freelancers pay approximately €700 to €900. However, the exact contributions are based on income (between 9.0% to 10.2% for employees).

You can use our public health insurance calculator to estimate your own contributions.     

Private health insurance

Private health insurance is only possible for freelancers and students earning more than €30,000 annually, while employees must earn more than €69,300 to be eligible.

Here is how private health insurance compares to public:

• It offers better coverage (especially in some areas like dental or vision).
• You access care much faster.
• It’s more affordable than public insurance if you’re under 45≈ and healthy.

The cost of private health insurance ranges from 350 to 550 for a standard plan, but varies from person to person based on risk factors like age, health condition, and desired coverage. 

You can use our private health insurance calculator to better understand how much you’d save compared to public health insurance.  

Expat health insurance

If you’re not eligible for neither private or public health insurance, then this expat health insurance is for you. It’s perfect if you’re looking to obtain a visa or residence permit (there’s some caveats, check out our expat health insurance guide for the details)

Starting at €72 per month, our Basic Plan covers essential healthcare needs, including accidents, emergencies, and new illnesses.

For more comprehensive coverage, our Premium Plan begins at €134 per month and includes additional benefits such as dental and eye checkups, cancer screenings, and pregnancy exams and deliveries.

Car insurance

To drive in Germany, you need third-party liability insurance. You won’t be able to register your vehicle without it. 

If you come from an EU/EFTA country, your insurance is valid in Germany. If you don’t, you must sign up for a German insurance policy.

Car insurance usually covers:

• Damages caused by fire, lightning, and natural events like storms and floods
• Theft and robbery. 
• Broken glass and damage to the car’s wiring. 
• Third-party car liability
  

The cost will range from 100€ to 1,000€ per year, depending on which policy you choose, your age, and your car.

Statutory pension insurance

All employees are required to participate in the German state pension scheme. 

The state pension covers old age pensions, disability pensions, and survivor benefits. 

Technically, you won’t need to sign up for it; your employer will do it. You’re already covered!

However, opting for a private pension is a good idea to supplement your income during retirement.

5 insurances that should be mandatory (but aren’t)

Yes, we know… Of course, we’d say these insurances are really important. But they are. 

Liability, household, legal, dental, and bike insurance may not be legally required, but they are essential for financial and legal protection.

Let’s find out why.

Liability insurance

In Germany, you’re legally liable for damages caused to others or their property. 

For example:

While at the park, you accidentally bump into someone playing with their phone, causing them to drop and damage it. Your liability insurance will cover the costs of repairs.

Or worse… You accidentally hit someone while on your bike, they fall, hurt themselves, and can never work again. You’d be liable for all the costs related to their recovery, but also the loss of salary, for the rest of their life. This amounts to millions. 

Plus, liability insurance will defend you from baseless claims made against you.

Private liability insurance costs usually between €3.30 to €6.30 a month, but can cover you up to tens of millions.

Home contents insurance

Household contents insurance covers personal items in your home against certain damages. 

Household insurance is highly recommended for homeowners and renters because it covers:

• Water damage from pipes and containers
• Fires
• Vandalism
• And more

It usually costs less than €15 a month (but it can save you tens of thousands), with Feather insurance starting at €2.50 monthly. 

Legal insurance

Legal insurance protects you from expenses that arise from legal disputes. 

Here’s what it usually covers:

• Disputes about personal contracts
• Disputes after traffic accidents
• Professional disputes, like wrongful terminations, warnings, or unfair assessments
• And much more, but the details vary widely between insurers.

It usually costs around €10 to €40 a month. Since lawyers in Germany tend to charge €200 per hour or more, a legal battle might cost you dearly without one.

Dental insurance

Public health plans cover basic dental treatments but not much beyond that. 

If you want the best treatment available, have a poor dental health history, or prefer treatments with pleasing aesthetics, you should opt for supplemental dental insurance. 

Here’s what it covers:

• Preventative treatments like sensitivity treatments
• Tooth replacement, which can cost up to €3100! 
• High-quality fillings (public insurance will only cover amalgam fillings, which has a metallic silver color)
• And more… But, once again, the details vary between providers. 

Dental insurance typically costs between €8.80 and €10.90 per month and usually includes coverage for one or two annual teeth cleanings (which, in Berlin, can cost more than €125 per session). You can quickly recover the insurance cost by taking advantage of this benefit.

Bike insurance

With more than 600,000 bikes stolen yearly in Germany (and only 1 out of 10 recovered), having bike insurance makes sense for almost every bicycle owner.

It’s got great coverage for things like:

• Repair costs from usage, production errors, and getting into an accident. 
• Bicycle loss from theft, burglary, and robbery.
• The bicycle’s damaged or stolen parts.
• Damage from vandalism.
• And it even covers theft, damage, and wear and tear of your e-bike’s battery. 

The cost for this policy ranges from €4.50 to €20 monthly. 

Plus, with Feather, you can even choose to include your bike’s accessories in the coverage—meaning you won’t have to uninstall or carry your child seats indoors if you leave the bike outside.

3 insurances for forward-thinking expats.

Planning for the future can feel daunting, but it doesn’t have to be. 

You can safeguard yourself and your loved ones against life’s unexpected twists with the right protection. 

Whether traveling abroad, securing your family’s financial future, or protecting your income, these insurances can help:

Travel insurance

Travel insurance protects you from incurring out-of-pocket expenses for unexpected situations, such as trip cancellations or medical emergencies when traveling outside of Germany.

With some days seeing up to 5,000 flights cancellations, having travel insurance ensures you won’t face both the disappointment and the financial burden of a disrupted trip.

Here’s what travel insurance typically covers:

• Medical treatment
• Lost or damaged luggage
• Return expenses (Costs for an emergency return to Germany).
• Unused travel days
• Cancellation and rebooking fees

You’ll usually pay from €8.40 to €59.60 annually for your own policy, and if you want to cover your family, the cost can vary from €18.60 to €155 annually.

Lower-priced plans typically only cover medical expenses, while higher-end policies include comprehensive coverage for medical and travel-related expenses.

Life insurance 

If you have people who depend on your income—such as children, a partner, or even parents—life insurance is a good idea. It ensures they’re not left with financial burdens if something happens to you.

There are two main types: term life and whole life (also called capital life).

• Term life insurance: This covers you for a specific period, like 10, 20, or 30 years. If you pass away during this time, your dependents get a payout. But if the term ends while you’re still alive, there’s no payout.
• Whole life insurance: This covers you for your entire life, no matter when you pass away. It’s more expensive, but your dependents will always get a payout

The payout from life insurance can help with:

• Debts
• Lost income
• Childcare and education
• Final expenses

The cost of life insurance depends on a few things, which, in insurance, is called your risk profile:

• Your age
• Your health
• Your lifestyle
• The payout amount

Disability insurance

Disability insurance, also called income protection insurance, helps you financially if you can’t work for more than six months due to illness or injury. 

It provides a monthly payment to help cover your living costs while you’re unable to earn. 

You might wonder: What is the point when you already have health and pension insurance?

Here’s the key difference… 

Health insurance typically covers your medical bills and sick pay, but only for a limited time—usually up to 72 weeks. 

After that, you won’t receive any income from it. 

Pension insurance, on the other hand, kicks in only once you reach retirement age, which doesn’t help if you lose your ability to work before that time. 

Disability insurance fills this gap, ensuring you still have money coming in if you can’t work for an extended period.

Disability insurance is especially important for self-employed people who rely on their income to support themselves. If they can’t work, they lose their main source of income. 

But it’s also useful for anyone who depends on a steady paycheck, like those with family responsibilities, mortgages, or ongoing bills.

The cost of disability insurance varies based on your risk profile, made up of factors like:

• Age
• Job
• Health

For example, if you have a more dangerous job or if you’re older, it might be more expensive. Some policies, like Feather’s, start at around €20 per month, but the final price will depend on your individual circumstances.

Bonus: 2 types of insurance for pet owners

When it comes to being a responsible pet owner, two types of insurance can help protect both your pet and your finances. Let’s take a quick look at how these insurance options work and what they cover.

Dog liability insurance. 

Dog liability insurance is a type of coverage protecting dog owners from any harm you dog might cause.

This insurance is mandatory in several German states: Hamburg, Berlin, Lower Saxony, Schleswig-Holstein, Saxony-Anhalt, and Thuringia.

Here’s what it usually covers:

• Medical injuries to others
• Property damage, such as if your dog breaks something that belongs to someone else.
• Damage to rented apartments, for example, if your dog chews the furniture in a rental.
• Financial loss due to dog bites, which can include costs that the injured person faces, such as missed work.

The price depends on your dog’s age, breed, and size. Typically, you can expect to pay between 2.40 and 5.75 euros per month for coverage.

Pet health insurance. 

Pet health insurance is a way for pet owners to help manage the costs of taking care of their animals when it comes to medical needs. For example, an ACL knee surgery for a dog can cost between €1,000 and €3,000.

In Germany, this type of insurance is mainly for older pets, as they may need more medical attention, and insurance helps cover the costs. However, if you sign up early, then you can expect to pay lower premiums.

Pet health insurance usually covers several important services, including:

• Vet visits and medication
• Sterilization
• Dental care
• Operations (this is usually customisable, you can choose to include it for a slightly higher cost)
• Physiotherapy
• Preventative treatments

The cost of pet insurance depends on several factors like the type, age, and breed of your pet, as well as the level of coverage you choose. 

On average, prices range from €15 to €80 per month. The higher the coverage or the more specific your pet’s needs, the more expensive the monthly premium may be.

Conclusion

Now that you know all about the types of insurance in Germany, which one do you need immediately, and which one is in your long-term plan? 

Let us know in the comments!

Feather’s recommendation tool can help you narrow down your choices if you are having trouble deciding between multiple options.

Otherwise, we’d be happy to answer any questions in a call.