Insurances in Germany

This section will introduce you to the most important types of insurances. While some insurances are mandatory (car = Kfz-Haftpflichtversicherung, health = Krankenversicherung, professional liability [for chambered professions] =  Vermögenschadenhaftpflichtversicherung, etc.), most of them are voluntary.


The wording "social security (= soziale Sicherheit)" is not common in Germany. Germans would not really mention or speak of Sozialverischerung in day-to-day discussions. In other words, when referring to old-age pensions Germans speak of "Rentenversicherung" or relating to precaution for old-age pensions "Rentenvorsorge".

People employed in Germany have to contribute to four principal social insurance schemes. The contribution is generally paid half by the employer and half by the employee. This also includes trainees and members of the armed forces and civil service. The exact contributions are:

1. Rentenversicherung (old-age pension insurance): 18.7%
2. Arbeitslosenversicherung (unemployment insurance: 3.0%
3.1. Pflegeversicherung (nursing care insurance:
true for persons under 23 or if older with kids on the tax card
3.2. Pflegeversicherung (nursing care insurance:
for everybody else
4. Krankenversicherung (health insurance): 14.6%
Fine, with all that. But disregarding the mandatory insurance is there not something that you can recommend that is seriously needed?

A "must" is private liability insurance to cover the risk of slipping on a banana peel. It costs a penny's worth and covers millions. Otherwise, legal insurances are nice to have, if you are somewhat shaky with your nerves when a lawyer is needed or when a matter is to go to court.

Tagged under: Taxes Private,