Insurance in Germany: Mandatory and Useful Types for Relocating

In Germany, some types of insurance are required by law or are practically necessary for living in the country, while others are voluntary but help cover major everyday risks. For newcomers, the most important things to figure out are health insurance, long-term care insurance (Pflegeversicherung), auto insurance if you own a car, pension contributions for employees, and voluntary policies such as personal liability insurance (Privathaftpflicht) and supplemental dental insurance (Zahnzusatzversicherung).

In Short: What’s Mandatory and What’s Optional

Type of Insurance	Status	Who It’s Especially Important For
Krankenversicherung, health insurance	Mandatory for residents of Germany	Everyone: employees, students, self-employed individuals, family members
Long-term care insurance (Pflegeversicherung)	Usually included with health insurance	For everyone insured under the Krankenversicherung system
Kfz-Haftpflichtversicherung	Required for vehicle registration	For owners of cars and trailers
Statutory Pension Insurance	Mandatory for most employees	Employees; separate rules apply to some self-employed individuals
Privathaftpflichtversicherung	Voluntary, but very useful	Almost all adults and families
Zahnzusatzversicherung	Voluntary	For those who want to reduce their out-of-pocket costs for dental care and dentures

Health Insurance: GKV or PKV

Health insurance is mandatory in Germany. The main choice is usually between the public system, gesetzliche Krankenversicherung (GKV), and the private system, 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 expenses.

In the GKV, contributions are calculated based on beitragspflichtige Einnahmen—the income subject to contributions—but only up to the Beitragsbemessungsgrenze. In 2026, the total statutory Beitragssatz is 14.6% plus the Zusatzbeitrag set by the specific health insurance fund. The average additional contribution for 2026 is set at 2.9%, but the actual rate depends on the health insurance provider you choose.

For employees, contributions to the GKV, including the Zusatzbeitrag, are usually split between the employee and the employer. Self-employed individuals, those with voluntary insurance, and certain other groups are subject to separate rules, so it’s important for them to check the terms and conditions with their Krankenkasse.

What GKV generally covers:

• doctor visits and basic outpatient treatment;
• hospitalization when medically necessary;
• laboratory and diagnostic tests as medically indicated;
• many prescription medications with set copayments;
• preventive checkups and some dental services;
• Sick pay (Krankengeld) for those who are eligible.

PKV may offer a broader or different range of services, but the premium depends not on current income, but on the plan, age, health status, and the selected coverage. Before switching to PKV, it’s 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 event that long-term care is needed. It does not cover “treatment for serious illnesses” in the usual sense; medical insurance is required for such treatment. Pflegeversicherung provides assistance when a person requires regular care due to their health condition and has been assigned a Pflegegrad (care level).

In 2026, the basic contribution rate (Beitragssatz) for social long-term care insurance (Pflegeversicherung) is 3.6% of income subject to contributions (beitragspflichtige Einnahmen). A surcharge (Zuschlag) applies to insured individuals over the age of 23 without children, so the total contribution for them is 4.2%. For parents with several children under the age of 25, reductions may apply; the details depend on the family situation and must be documented.

For employees, the basic portion of the contribution is usually split between the employee and the employer, but the Zuschlag for childless employees is paid by the employee alone. In Saxony, a special distribution of shares applies.

Auto 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 against unfounded claims.

It is important to distinguish between:

• Kfz-Haftpflicht - mandatory third-party liability insurance;
• Teilkasko - voluntary coverage for specific risks related to your own car, such as theft, glass damage, and certain types of weather-related damage;
• Vollkasko - voluntary, more comprehensive coverage, including certain driver errors and vandalism, subject to the terms of the contract.

The cost depends on the car, the region, the no-claims class, mileage, the drivers’ ages, the parking location, and the selected plan. Therefore, there is no one-size-fits-all price.

Pension Contributions

For most employees, contributions to the gesetzliche Rentenversicherung are automatically deducted from their paychecks. In 2026, the Beitragssatz for the general pension insurance is 18.6% of gross income within the Beitragsbemessungsgrenze; typically, half is paid by the employee and half by the employer.

The rules for the self-employed vary. Some professions may be required to pay contributions, while others may opt for voluntary insurance or use private pension solutions. Therefore, entrepreneurs and freelancers should check their status separately with the Deutsche Rentenversicherung or a tax advisor.

The state pension is the foundation of the system, not a guarantee of your previous income level. That’s why people in Germany often supplement it with private or corporate pension plans, but choosing such products is a matter of financial planning.

Privathaftpflicht: Voluntary, but Almost Essential

Privathaftpflichtversicherung isn’t mandatory for everyone, but it’s considered one of the most useful types of personal insurance. It covers damage that you, as a private individual, accidentally cause to others—for example, damaging someone else’s property, flooding your neighbors’ home, or causing an injury.

Before purchasing a policy, it’s worth checking the coverage amount, family coverage, coverage for keys to a rental apartment, damage to rental property, coverage for children who are or are not liable for damages, as well as the terms for travel abroad. Dog owners in some states may need separate pet owner liability insurance (Tierhalterhaftpflicht).

Zahnzusatzversicherung: Supplemental Dental Insurance

Public health insurance does not fully cover dental care. For medically necessary dental prosthetics (Zahnersatz), the insurance provider pays a diagnosis-based fixed subsidy (befundbezogener Festzuschuss) toward standard coverage (Regelversorgung). With a Bonusheft, the subsidy may increase after regular preventive checkups, but expensive materials, implants, and treatments beyond standard coverage often result in a high out-of-pocket cost (Eigenanteil).

Zahnzusatzversicherung can reduce your out-of-pocket costs for dentures, crowns, implants, professional cleanings, or other services, provided they are covered under the plan. But this isn’t a one-size-fits-all solution: policies often have waiting periods, restrictions in the first few years, exclusions for treatment already underway, and varying reimbursement rates.

Before signing a contract, check the following:

• what exactly is covered: dental prosthetics, dental treatment, preventive care;
• whether the reimbursement percentage is calculated together with the GKV payment or on top of it;
• Are there any waiting periods (Wartezeit) or coverage limits (Summenbegrenzung) during the first few years?
• Are implants, bone grafts, ceramics, and inlays covered?
• What happens if treatment has already been recommended by a dentist?

How to Choose Insurance After Moving

1. First, make sure you have the mandatory coverage: health insurance, long-term care insurance (Pflegeversicherung), and, if necessary, auto liability insurance (Kfz-Haftpflicht).
2. Check which contributions are already being deducted from your paycheck: Krankenversicherung, Pflegeversicherung, Rentenversicherung, and Arbeitslosenversicherung.
3. Assess your everyday risks: a rental apartment, children, a bicycle, pets, and frequent trips.
4. When comparing voluntary insurance policies, consider not only the price but also the exclusions, deductibles, coverage limits, and policy terms.
5. Keep your insurance policy (Versicherungsschein), the terms of the contract, correspondence, and payment confirmations.
6. Do not sign up for package deals if you do not understand what risks are actually covered.

Common Mistakes

• assuming that health insurance automatically covers all dental expenses;
• confusing Pflegeversicherung with medical treatment;
• buying the cheapest policy without checking the exclusions;
• failing to notify the insurer of important changes: address, marital status, vehicle, income, or the start of self-employment;
• choosing private health insurance (PKV) solely because of the low initial premium, without considering the long-term costs;
• submitting an application through an intermediary without understanding who the insurer is and what the terms of the contract are.

FAQ

Is it possible to live in Germany without health insurance?

No, health insurance is mandatory. The question is usually not whether you need it, but which system is right for your status: GKV, PKV, or a special solution for a transitional period, for example, until you start studying or working.

Which to Choose: GKV or PKV?

For most newcomers, GKV is simpler and easier to understand. PKV may be advantageous or convenient in certain situations, but it requires an analysis of eligibility, future premiums, family situation, age, and the possibility of returning to GKV.

Do students need Privathaftpflicht?

Often, yes. Sometimes students are still covered under their parents’ family policy, but this depends on their age, place of residence, family agreement, and student status. If there is no family coverage, a separate Privathaftpflicht policy is usually one of the first things to look into.

Does GKV cover dental implants?

GKV typically covers standard care (Regelversorgung) and a fixed subsidy (Festzuschuss). Implants and more expensive treatments often result in a significant out-of-pocket cost (Eigenanteil). Before treatment, you’ll need a treatment and cost plan (Heil- und Kostenplan), which must be approved by your health insurance provider (Krankenkasse).

Is Teilkasko or Vollkasko mandatory?

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