How does insurance work in Germany?
Insurance in Germany works in the same way as most developed nations
Customers purchase policies for fixed terms with specific benefits. They then pay for these policies via regular premiums. Some forms of insurance can feature flexible premiums, such as life insurance, while others are more rigid.
Health insurance is slightly different to many other nations. All residents of Germany must be enrolled in health insurance schemes, which can be either state provided (gesetzliche Krankenversicherung, GKV) or private (private Krankenversicherung, PKV).
If you are employed and earn less than €60,000, you will only be eligible for state-provided insurance options. Those earning above that threshold can purchase private policies, as can all self-employed residents. This may deliver savings for healthy individuals. Find out more about health insurance on our German Health Insurance page.
Which types of insurance in Germany are really necessary?
Every person coming to or living in Germany will require their own mix of insurance policies, and as you can see, there are plenty of different forms. If you intend to pursue a medical trade, legal assistance and liability insurance will be essential.
Accident insurance may be advantageous for active sportsmen or drivers, while those who want to explore Europe will benefit from extensive travel insurance policies. Just buy the policies that make sense for your own unique needs.