Insurance in Germany: Mandatory and Useful Types for Moving

In Germany, some types of insurance are mandatory by law or effectively necessary for living in the country, while others are voluntary but help cover major everyday risks. For newcomers, the most important things are to understand health insurance, Pflegeversicherung, car insurance if you own a car, pension contributions for employees, and voluntary policies such as Privathaftpflicht and Zahnzusatzversicherung.

In brief: what is mandatory and what is voluntary

Type of insurance	Status	Especially important for
Krankenversicherung, health insurance	Mandatory for German residents	Everyone: employees, students, self-employed people, and family members
Pflegeversicherung, long-term care insurance	Usually comes with health insurance	Everyone insured through the Krankenversicherung system
Kfz-Haftpflichtversicherung	Mandatory to register a vehicle	Owners of cars and trailers
Gesetzliche Rentenversicherung	Mandatory for most employees	Employees; separate rules apply to some self-employed people
Privathaftpflichtversicherung	Voluntary, but very useful	Almost all adults and families
Zahnzusatzversicherung	Voluntary	People who want to reduce their own dental and denture costs

Health insurance: GKV or PKV

Health insurance in Germany is mandatory. The main choice is usually between the public gesetzliche Krankenversicherung (GKV) system and private Krankenversicherung (PKV). For most employees, students, and family members, GKV is the standard option; PKV is not available to everyone and requires a separate assessment of income, status, age, health, and long-term costs.

In GKV, the contribution is calculated from beitragspflichtige Einnahmen—income subject to contributions—only up to the Beitragsbemessungsgrenze. In 2026, the statutory general Beitragssatz is 14.6%, plus the Zusatzbeitrag charged by the individual Krankenkasse. The average Zusatzbeitrag for 2026 is stated as 2.9%, but the actual rate depends on the fund you choose.

For employees, GKV contributions, including the Zusatzbeitrag, are usually split between employee and employer. Self-employed people, voluntarily insured people, and some other groups are assessed under separate rules, so it is important for them to check the terms with their Krankenkasse.

What GKV generally covers:

doctor visits and basic outpatient treatment;
hospital treatment when medically necessary;
laboratory and diagnostic examinations when indicated;
many prescription medicines with statutory co-payments;
preventive check-ups and some dental services;
Krankengeld for people who have the relevant entitlement.

PKV may provide a broader or different range of benefits, but the premium depends not on current income but on the tariff, age, health status, and selected cover. Before switching to PKV, it is important to understand the rules for returning to GKV and the long-term cost of insurance.

Pflegeversicherung: long-term care insurance

Pflegeversicherung is mandatory insurance for the need for long-term care. It does not cover “treatment for serious illnesses” in the usual sense; health insurance is needed for treatment. Pflegeversicherung helps when a person needs regular care because of their health and has been assigned a Pflegegrad.

In 2026, the basic Beitragssatz for social Pflegeversicherung is 3.6% of beitragspflichtige Einnahmen. A Zuschlag applies to insured people over 23 without children, making their total contribution 4.2%. Parents with several children under 25 may receive reductions; the details depend on the family situation and must be documented.

For employees, the basic part of the contribution is usually shared between employee and employer, but employees without children pay the Zuschlag themselves. Saxony has a special allocation of contribution shares.

Car insurance

If you want to register a car in Germany, you cannot do so without Kfz-Haftpflichtversicherung. This insurance covers damage your car causes to other people, their property, or their financial interests. It also protects you from unjustified claims.

It is important to distinguish between:

Kfz-Haftpflicht — mandatory third-party liability cover;
Teilkasko — voluntary cover for selected risks to your own car, such as theft, glass damage, and certain weather damage;
Vollkasko — voluntary, broader cover, including certain driver-caused damage and vandalism under the policy terms.

The cost depends on the vehicle, region, Schadenfreiheitsklasse, mileage, drivers’ ages, parking location, and selected tariff. There is therefore no universal price.

Pension contributions

For most employees, contributions to gesetzliche Rentenversicherung are automatically deducted from their salary. In 2026, the Beitragssatz for general pension insurance is 18.6% of gross income up to the Beitragsbemessungsgrenze; the employee and employer usually each pay half.

Rules for self-employed people vary. Some professions may be required to make contributions, while others can insure voluntarily or use private pension arrangements. Entrepreneurs and freelancers should therefore check their status separately with Deutsche Rentenversicherung or a tax adviser.

The state pension is a basic part of the system, not a guarantee of your previous income level. For this reason, private or company pension products are also commonly used in Germany, though choosing such products is already a matter of financial planning.

Privathaftpflicht: voluntary but almost essential

Privathaftpflichtversicherung is not mandatory for everyone, but it is considered one of the most useful types of everyday insurance. It covers damage that you, as a private individual, accidentally cause to others: for example, damaging someone else’s property, flooding a neighbour’s home, or causing an injury.

Before buying a policy, check the insured sum, family cover, keys to a rented flat, damage in rented accommodation, liability of children with and without legal capacity, and terms for travel abroad. Dog owners in some federal states may need separate Tierhalterhaftpflicht insurance.

Zahnzusatzversicherung: supplementary dental insurance

Public health insurance does not fully cover dental treatment. For medically necessary Zahnersatz, the fund pays a befundbezogener Festzuschuss—a fixed Zuschuss toward Regelversorgung. With a Bonusheft, the Zuschuss may increase after regular preventive check-ups, but expensive materials, implants, and treatment beyond Regelversorgung often leave a high Eigenanteil.

Zahnzusatzversicherung can reduce out-of-pocket costs for dentures, crowns, implants, professional cleaning, or other services if they are included in the tariff. But it is not a universal solution: policies may have waiting periods, limits in the first years, exclusions for treatment that has already begun, and different reimbursement percentages.

Before signing a contract, check:

exactly what is covered: Zahnersatz, Zahnbehandlung, and Prophylaxe;
whether the reimbursement percentage is calculated together with the GKV payment or in addition to it;
whether there is a Wartezeit and Summenbegrenzung in the first years;
whether implants, bone grafting, ceramic, and inlays are covered;
what happens if a dentist has already recommended treatment.

How to choose insurance after moving

First, arrange what is mandatory: health insurance, Pflegeversicherung, and Kfz-Haftpflicht if needed.
Check which contributions are already deducted from your salary: Krankenversicherung, Pflegeversicherung, Rentenversicherung, and Arbeitslosenversicherung.
Assess everyday risks: a rented flat, children, a bicycle, pets, and frequent travel.
For voluntary policies, compare not only the price but also exclusions, deductibles, limits, and duration.
Keep your Versicherungsschein, policy terms, correspondence, and proof of payment.
Do not sign package offers if you do not understand which risks they actually cover.

Common mistakes

assuming health insurance automatically covers every dental expense;
confusing Pflegeversicherung with treatment for illnesses;
buying the cheapest policy without checking exclusions;
failing to tell the insurer about important changes: address, family status, car, income, or beginning self-employment;
choosing PKV only because of a low initial premium without considering the long term;
applying through an intermediary without understanding who the insurer is and which policy terms apply.

FAQ

Can you live in Germany without health insurance?

No, health insurance is mandatory. The question is usually not whether you need it, but which system suits your status: GKV, PKV, or a special transitional solution, for example before starting studies or work.

Which should you choose: GKV or PKV?

For most newcomers, GKV is simpler and easier to understand. PKV can be beneficial or convenient in certain situations, but it requires an assessment of eligibility, future contributions, family, age, and the possibility of returning to GKV.

Does a student need Privathaftpflicht?

Often, yes. Students may still be included in their parents’ family policy, but this depends on age, place of residence, the family contract, and study status. If family cover is unavailable, a separate Privathaftpflicht is usually one of the first policies worth considering.

Does GKV cover dental implants?

GKV usually focuses on Regelversorgung and a Festzuschuss. Implants and more expensive options often result in a substantial Eigenanteil. Before treatment, you need a Heil- und Kostenplan, which should be agreed with the Krankenkasse.

Is Teilkasko or Vollkasko mandatory?

No. Kfz-Haftpflicht is mandatory. Teilkasko and Vollkasko are voluntary and protect your own vehicle if that risk is financially significant to you.