Germans are, by European standards, heavily insured people. This is not solely cultural: some insurance is legally mandatory (health, liability for vehicles), some is de facto required by landlords or employers, and some is very strongly recommended given German liability law. Expats who arrive without understanding the landscape frequently discover gaps after they've needed the coverage.

Here is the vocabulary for the German insurance system: the mandatory policies, the strongly recommended ones, and the system in which they operate.

Health Insurance (Mandatory)

Krankenversicherung — health insurance. Mandatory for everyone in Germany. The system is split:

Gesetzliche Krankenversicherung (GKV) — statutory / public health insurance. The default for employees earning below the Versicherungspflichtgrenze (income threshold, currently ~€73,800 gross/year in 2026). Contributions are around 14–17% of gross salary, split roughly equally between employer and employee.

Krankenkasse — the specific public health insurer you are registered with. There are multiple competing Krankenkassen (e.g., TK, AOK, Barmer, DAK). They offer the same statutory coverage but differ in supplementary services and premium health programmes.

Private Krankenversicherung (PKV) — private health insurance. An option for employees above the income threshold, self-employed, and civil servants. Often better coverage and faster access, but premiums rise with age and health status.

Beitragsbemessungsgrundlage — the assessment basis for contributions.

Selbstbeteiligung — deductible (in private insurance plans).

Krankengeld — sick pay from the Krankenkasse from the 7th week of illness.

Privathaftpflichtversicherung — personal liability insurance. Among the most important policies in Germany and one of the cheapest. Covers damage or injury you cause to third parties in everyday life — accidentally breaking a friend's phone, causing a cycling accident, flooding a neighbour's apartment by leaving a tap running. Without it, personal liability in Germany is unlimited. Typically costs €40–100 per year. Non-negotiable for most expats.

Haftpflicht — liability. "Ich bin haftpflichtig versichert." — I have personal liability insurance.

Schaden — damage, claim.

Schadensmeldung — a damage claim report.

Household Insurance

Hausratversicherung — contents insurance (covering your household contents against theft, fire, water damage, etc.). Not mandatory but very common; often required or expected by landlords. Covers belongings within your home.

Wohngebäudeversicherung — building insurance (covering the structure of the building against fire, water, storm, etc.). If you own property, this is mandatory (in most German states) and required by mortgage lenders.

Einbruchdiebstahl — burglary. Covered under most Hausratversicherung policies.

Leitungswasserschäden — water pipe damage. A standard component of Hausrat and Gebäude insurance.

Elementarschäden — natural hazards (flooding, earthquake, landslide). Not automatically included in standard policies; you may need to add Elementarschadenversicherung separately, especially in flood-prone areas.

Vehicle Insurance (Mandatory)

Kfz-Haftpflichtversicherung — mandatory vehicle liability insurance. Required by law before a vehicle can be registered or driven. Covers damage you cause to others.

Teilkaskoversicherung — partial comprehensive insurance. Covers theft, fire, hailstorm, glass damage, and animal strikes. A supplement to basic Haftpflicht.

Vollkaskoversicherung — full comprehensive insurance. Covers all Teilkasko events plus own damage (accident caused by you). Higher premium; usually required by leasing companies and recommended for new cars.

Typklasse — vehicle rating class, based on claims history for your specific vehicle model. Affects your premium.

Schadenfreiheitsklasse / SF-Klasse — no-claims bonus class. Your discount level for claim-free driving years. Accumulates over years and is transferable between insurers.

Other Common Policies

Rechtsschutzversicherung — legal expenses insurance. Covers legal fees if you need to enforce your rights or defend yourself in legal proceedings. Very relevant for employment disputes, landlord conflicts, and contract disagreements. Germans use it heavily; it significantly reduces the financial risk of litigation.

Berufsunfähigkeitsversicherung (BU) — occupational disability insurance. Pays a monthly benefit if you can no longer work in your profession due to illness or injury. Considered essential by most German financial advisers; state disability provision alone is rarely sufficient.

Lebensversicherung — life insurance.

Risikolebensversicherung — term life insurance (without investment component; pure risk cover). Common requirement for mortgage lenders.

Rentenversicherung — pension / retirement insurance. Statutory contributions via Deutsche Rentenversicherung are mandatory for employees. Additional private Rentenversicherung is commonly recommended to supplement state provision.

Pflegeversicherung — long-term care insurance. Mandatory alongside Krankenversicherung; entitles you to care benefits if you require sustained personal care.

Key Vocabulary for Claims

Versicherungspolice — insurance policy document.

Versicherungsnehmer — policyholder.

Versicherungssumme — insured sum / coverage amount.

Beitrag / Prämie — premium (the amount you pay for coverage).

Schadenfall — a claim event.

Schadensersatz — compensation for damages.

Kulanzleistung — a goodwill payment (beyond the strict policy terms).

Kündigung — cancellation of the policy. Note German policies' notice periods (Kündigungsfristen) and automatic renewal clauses.

Understanding the German insurance landscape is an early-arrival priority. The Haftpflicht takes an afternoon to set up and can prevent catastrophic financial exposure. Get it right from the start.

German insurance vocabulary is essential knowledge for expats. Vokabulo helps you understand exactly what you have, what you need, and what your policy says. Available on iPhone and iPad.