Frankfurt

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Insurance

General information about mandatory and optional insurance policies, such as health, liability, and car insurance.

Sections

1. Types of Insurance in Germany (and Frankfurt)

Germany has a robust insurance system, and the types of insurance can be broadly categorized into mandatory insurance and optional insurance. Here’s a breakdown:

Mandatory Insurance

These are legally required for residents and workers in Germany:

  1. Health Insurance (Krankenversicherung)

    • Legal Requirement: Health insurance is mandatory for everyone living or working in Germany, including visitors staying long-term (over 90 days) and immigrants.
    • Types:
      • Public Health Insurance (Gesetzliche Krankenversicherung - GKV): Covers basic healthcare needs, including doctor visits, hospital stays, and medications.
      • Private Health Insurance (Private Krankenversicherung - PKV): Available for higher earners (above €66,600/year in 2023) or self-employed individuals. Offers more comprehensive coverage and shorter waiting times.
    • Costs:
      • Public: Around 14.6% of your gross income (split between employer and employee), with an additional surcharge of 1-2%.
      • Private: Costs vary based on age, health, and coverage but typically range from €300–€800/month.
    • Procedure:
      • For public insurance, register with a provider like TK, AOK, or Barmer.
      • For private insurance, compare providers like Allianz, AXA, or Debeka.
    • Local Consideration: Many expats in Frankfurt opt for public insurance due to its affordability and comprehensive coverage.

  2. Pension Insurance (Rentenversicherung)

    • Legal Requirement: Mandatory for employees. Contributions are deducted from your salary.
    • Costs: 18.6% of gross income (split between employer and employee).
    • Local Consideration: If you leave Germany, you may be eligible for a refund of contributions under certain conditions.

  3. Unemployment Insurance (Arbeitslosenversicherung)

    • Legal Requirement: Mandatory for employees.
    • Costs: 2.5% of gross income (split between employer and employee).
    • Local Consideration: Provides financial support if you lose your job and meet eligibility criteria.

  4. Nursing Care Insurance (Pflegeversicherung)

    • Legal Requirement: Covers long-term care needs.
    • Costs: Around 3.05% of gross income (split between employer and employee). Childless individuals pay an additional 0.35%.

  5. Car Insurance (Kfz-Versicherung)

    • Legal Requirement: If you own a car, liability insurance is mandatory.
    • Costs: €300–€1,000/year, depending on the car, driver’s history, and coverage.
    • Local Consideration: Frankfurt has a high volume of traffic, so comprehensive coverage (including theft and damage) is recommended.

Optional Insurance

These are not legally required but are highly recommended for financial security:

  1. Personal Liability Insurance (Haftpflichtversicherung)

    • Why It’s Important: Covers damages you cause to others or their property. This is one of the most common and recommended insurances in Germany.
    • Costs: €50–€150/year.
    • Local Consideration: Many landlords in Frankfurt require tenants to have liability insurance.

  2. Household Contents Insurance (Hausratversicherung)

    • Why It’s Important: Covers damage or theft of personal belongings in your home.
    • Costs: €50–€200/year, depending on the size of your apartment and coverage.
    • Local Consideration: Useful in Frankfurt due to the high cost of living and potential risks like theft.

  3. Legal Insurance (Rechtsschutzversicherung)

    • Why It’s Important: Covers legal fees in case of disputes (e.g., with landlords or employers).
    • Costs: €150–€400/year.
    • Local Consideration: Frankfurt’s competitive housing market can lead to disputes, making this insurance valuable.

  4. Travel Insurance (Reiseversicherung)

    • Why It’s Important: Covers medical emergencies, trip cancellations, or lost luggage during travel.
    • Costs: €10–€50 per trip or €100–€200/year for annual coverage.
    • Local Consideration: Useful for frequent travelers, especially given Frankfurt’s status as a major travel hub.

  5. Accident Insurance (Unfallversicherung)

    • Why It’s Important: Covers accidents outside of work (workplace accidents are covered by employers).
    • Costs: €100–€300/year.

  6. Private Pension Insurance (Private Rentenversicherung)

    • Why It’s Important: Supplements the state pension for long-term financial security.
    • Costs: Varies based on contributions and provider.

2. Procedures for Obtaining Insurance

  1. Research and Compare Providers

    • Use comparison websites like Check24 or Verivox to find the best insurance deals.
    • For health insurance, public providers like TK and AOK are popular, while private providers include Allianz and AXA.

  2. Gather Required Documents

    • Common documents include:
      • Passport or ID
      • Proof of residence (Anmeldung)
      • Employment contract (for health and pension insurance)
      • Bank account details (IBAN)

  3. Apply Online or In-Person

    • Many providers allow online applications, but you can also visit their offices in Frankfurt for assistance.

  4. Sign the Contract

    • Read the terms carefully before signing. Contracts are typically annual and renew automatically unless canceled.

  5. Receive Confirmation

    • Once approved, you’ll receive a policy document (Versicherungsschein) outlining your coverage.

3. Legal and Local Considerations

  1. Registration (Anmeldung)

    • You must register your address in Frankfurt (at the Bürgeramt) to access most insurance services.

  2. Bank Account

    • A German bank account is often required for premium payments.

  3. Language Barrier

    • Many insurance providers offer services in English, especially in Frankfurt, which has a large expat community. However, contracts are often in German, so consider seeking translation assistance.

  4. Cultural Tip

    • Germans take insurance seriously, and having the right coverage is seen as a sign of responsibility. Personal liability insurance, in particular, is considered essential.

  5. Cancellation Policies

    • Most insurance contracts have a notice period (e.g., 3 months before renewal). Be aware of these terms to avoid automatic renewals.

4. Costs and Budgeting

  • Health Insurance: €300–€800/month
  • Liability Insurance: €50–€150/year
  • Household Insurance: €50–€200/year
  • Car Insurance: €300–€1,000/year
  • Legal Insurance: €150–€400/year

For a single person, budgeting around €400–€600/month for mandatory and essential optional insurance is reasonable.

5. Practical Tips for Frankfurt

  1. Expats and International Insurance

    • If you’re new to Germany, some international health insurance plans may be accepted temporarily, but you’ll need German health insurance for long-term stays.

  2. Public Transport

    • If you don’t own a car, you can skip car insurance. Frankfurt’s public transport system (RMV) is excellent.

  3. Housing

    • When renting in Frankfurt, landlords may ask for proof of liability insurance. Be prepared to provide this.

  4. Community Support

    • Join expat groups in Frankfurt (e.g., on Facebook or Meetup) for recommendations on insurance providers and brokers.

By understanding the insurance landscape in Frankfurt, you can ensure financial security and compliance with German laws. If you need further assistance, feel free to ask!