There are hundreds of insurances available in Germany in different categories. Being an expat, these numerous types could confuse you. In this article, we detail some useful insurances for you.
Being insured is one of the key elements to consider during our lifetime. In Germany, you’ll have to decide what kind of insurance you will need while living here as the insurance companies offer many varieties of insurance.
The many options of insurance tend to confuse expats generally while thinking about which all insurances should you invest on. The key is that while you should not be over insured, you have to make sure that you are not under insured too.
Thankfully, most of the insurance companies offer packages to expats towards their specific requirements.
Which are the mandatory insurances in Germany?
Krankenversicherung or health insurance is mandatory in Germany no matter if you are a tourist or resident here.
There are both public and private health insurances available. You will be anyway covered by the state health insurance / gesetzliche krankenversicherung – GKV if you work in Germany. However, you should have at least €4950 to €59400 of income per annum (not for self-employed people).
In Germany, the employers usually cover 50% of the health insurance premium.
Private health insurance or private krankenversicherung – PKV is also available for those who are not entitled to GKV or if you prefer to get private insurance.
Few large health insurance companies in Germany are Allianz, AXA, etc.
Arbeitsversicherung or Labor Insurance
Sozialversicherungsbeiträge or social security contributions is something you pay automatically if you work in Germany. This will cover your
Unemployment insurance (arbeitslosenversicherung) – This entitles you to the unemployment benefits if you become jobless and you meet certain criterias. The premium is shared by the employer and the employee.
Statutory pension insurance (rentenversicherung) – This goes to your state pension account.
Statutory accident insurance (gesetzliche unfallversicherung) – this employer paid insurance is to take care of your treatments for any accidents or illness occurred during or related to your work.
Motor insurance or Kfz versicherung or autoversicherung is a mandatory insurance for all drivers in Germany. During the registration process of a motor vehicle, you must present a proof of motor insurance in Germany. Only then the Tüf / motor vehicles department issues a license plate to you.
The premium of the insurance depends on the coverages you opt for. Third-party liability (haftpflicht), Partial coverage (teilkasko) or Comprehensive coverage (vollkasko) are the commonly available options. The premium also depends on the age of the driver, driving experience, driving record, and the depreciation value of your vehicle. AXA, Allianz, and HDI are few front liners in this area.
Use the comparison tools provided by check24.de to have a meaningful comparison.
Good to have insurances
House Insurance or hausratversicherung
House insurance is nice to have if you are living in a rental apartment / house that is furnished; which is a common scenario for expats in Germany. This covers damages to the properties in your house such as fire, water damages, theft, etc.
While the costs may vary depending on the size of the house and the appliances you have in your house, many companies offer a package to expats on a rather cheap cost. Entry level policies should not cost you more than €50 a year.
Personal liability insurance or Private haftpflichtversicherung
It's better to think about this not so expensive insurance if you live in Germany. This is to cover injury or damage to third parties or to their properties.
According to the German laws, there is no limit set for the amount a person can claim against you. The personal liability insurance helps you prevent such unexpected risks and following financial harm!
Usually, personal liability insurance should not cost you 60 - 100 € yearly.
Personal accident insurance
While the mandatory accident insurance is paid by the state in Germany, the coverage is limited to accidents that happen at or on the way to / from the workplace. The insurance covers the injuries that happen out of work. It is a popular insurance in Germany.
This insurance covers the long term disabilities caused by an accident. The costs may include, care charges or modifications to your home or vehicle. However, It doesn’t include loss of job, which is usually covered by the Occupational Disability Insurance.
In this insurance different body parts are valued differently. While the loss of a finger is valued 10% approx. the loss of sight of both the eyes may be valued 100%. This differ by the insurance company and the policy scheme
Occupational disability insurance or berufsunfähigkeit
This covers income loss if you are no longer able to work due to an injury caused by an accident. If you live in Germany for a certain period of time and pay into a pension, you should be able to claim a erwerbsminderungsrente or disability pension.
The insurance companies that offer private occupational disability insurance generally offer more coverage.
The premiums are based on the age, type of work and the risks associated with it.
Legal insurance or rechtsschutzversicherung
Legal insurance covers legal costs such as a lawyer and court fees. In Germany, the court fees and related costs can be very high. This is an insurance you must consider if you like to avoid huge legal bills.
The premiums start from €150 to €300+ per annum for the comprehensive coverage.
Finally, this is Germany and there are many more insurances from pet insurance to gadget insurance. It is your choice to choose the best that suits your requirement. Since, adding the premiums together would be a not so cheap amount from your monthly salary, it's up to you which one you should choose.
On your way to Germany
You can find all the information you need about living and working in Germany at www.expatova.com.
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