German Insurance System

Some types of insurance in Germany are compulsory, such as health and vehicles insurance. However, third-party private liability insurance is the most important type of insurance. It basically means that the third party (insurance agency) will be responsible if you cause any losses due to negligence.

Casual carelessness can be defined as any act that causes an accident, such as breaking a glass in cafes, or even provoking one. You must insure your pet (e.g. a dog or horse) separately so that you can get compensation from an insurance company in the event of trouble. Third-party private insurance provides protection for people who engage in different activities, such as driving, sailing, and so on. It does not cover hunting for which other insurance policies are required.

Third-party private liability insurance usually lasts three to five years. You cannot cancel your contract prior to the end of the term. It is better to have annual insurance. This allows you to extend or cancel your contract at any time and gives you more options.

A household policy is another type of insurance that can be useful. It will pay for any damage or loss to your property. This covers almost everything, including household appliances, clothes and dishes, as well as windows, doors, windows, and so on. If you are the owner of property that is located on your household’s territory, then it must be insured.

Your insurance policy will pay you if your possessions are damaged by water/fire accidents, burglary or hooliganism. If you plan to leave your home for longer than 60 days, you must inform your insurance company.

You should remember that you will not be reimbursed by your household insurance if you rent a flat or house.

Complex insurance policies can be used if you have expensive items. It covers multiple types of damage.

Bicyclists in Germany are almost required to have insurance due to the high number of bike thefts. If you own more than one bicycle, it is a good idea to have insurance. Bicycle insurance may be included in some insurance policies, but not all. Sometimes you will need to purchase it separately.

The only way to insure your working equipment if you are self-employed is to insure it yourself. Usually, this is done by an employer. You cannot cancel your contract before it expires. It is better to have an annual policy to allow you to cancel if necessary.

Legal assistance insurance is a very valuable insurance policy for foreigners living in Germany. Foreigners often find themselves in a variety of situations, including conflicts with their employers, neighbors, and road accidents. These situations are often different to those that can be handled in their home countries. You can get legal assistance insurance to cover all court costs. Trials in Germany can be expensive. All fees must be paid in advance. The amount of the fees charged depends on the amount that is being disputed. If the amount is 10 000 euros, fees could be as high as 9 000 euros. If you have legal assistance insurance, the company will cover your expenses. This insurance typically covers loss of driving licence, damages due to conflicts with tax authorities, landlords, and inheritance advices. Family issues are not covered.

Insurance may also be available for disability and death. Although people try to avoid thinking about it, it is obvious that it is important to consider it. Your annual income is five to six times greater than the amount you pay to your family for your death or serious injury.

For injuries such as the loss of finger, compensation is equal to 30% of your annual income. For the loss of a leg, it’s fifty percent. Total blindness, on the other hand, is 100%.

Term life insurance can also be used. It provides compensation for your family after your death. Any cause of death is eligible for compensation. Insurance isn’t expensive. You will need to give the insurance company your medical history in order to obtain it.

Annual travel insurance is very useful if you are a frequent traveler. You get comprehensive insurance for every journey. There are no restrictions as to where you can travel or how often. Your insurance company will need to be notified if your trip is expected to last more than forty-two consecutive days.

If you are unable to complete your trip on time, the annual travel insurance will reimburse you. The insurance company will pay you back if your trip is more expensive than 500 euro. However, such services are not very common.

You may also be reimbursed by your insurance company if your baggage is lost or stolen.

There are many services that insurance companies can offer. You can contact them directly for more information.