A guide to insurances in Germany for international students

Insurance rules and regulations vary in different companies. For instance, in Germany some insurances are mandatory. Therefore not getting these insurances may cause expensive situations. The following blog will provide information regarding the different things about German insurance. 

Mandatory Insurance

Health Insurance

Health insurance in Germany is known as Krankenversicherung and is compulsory for anyone living in Germany. There are two types of health insurance present in Germany, these are private and public.  These insurances work in different ways and therefore it is important to understand the working of both the insurances to select the best one.  

Public Health Insurance (gesetzliche Krankenversicherung or GKV): There are different types of public health insurance (Krankenkassen). These insurances are considered non-profit funds although they are provided by the government. 

• Cost: The cost is based on the salary (14.6 percent of the total income, or capped at 769 Euros per month. In case the applicant is employed, then the amount of the health insurance is automatically deducted from the salary every month and the employer is bound to pay the half amount. However, in case the candidate is unemployed in that case they can make use of the parent's or spouse's insurance. 
• Coverage: All the required healthcare services are covered in the insurance such as income protection during sickness and maturity. The insurance covers the cost of treatments, visitations, and prescriptions. In case the treatment is not covered for instance cleaning of a tooth, then the doctor will provide prior information. 
• Advantages: It covers all the dependents. As the insurance is covered by the income of the candidate, the cost of insurance is low in case of a low salary.  Also, the insurance is very easy to use. The candidate is only required to show their insurance card. The doctors perform all the activities related to claiming bills. 
• Disadvantages: The major disadvantage of public health insurance is that people don't get good quality services.  As private patients give large amounts of money they get quick appointments when compared to publicly insured patients. Health professionals are willing to get rid of publicly assured patients. Also, public health insurance is more expensive for young professionals. The candidates are required to receive higher premiums, in case they have a high-paying job and have less number of dependents.

Private Health Insurance (privat Krankenversicherung or PKV): The candidates are allowed to have private health insurance in case they are unemployed, or have an earning of more than 58,000 Euros per month. 

• Cost: The cost of private health insurance depends on the age and health of the individual. In case the candidate is young and free from any type of medical condition, in that case, the cost of insurance is around 200 euros per month. The cost increases dramatically with age, dependents and health conditions. 
• Coverage: You have different types of options, such as adding dental, and special treatment for a fee. However, nursing care is not included in the insurance.
• Advantages: It provides better treatment services when compared to public health insurance. Candidates with private health insurance receive quick appointments with a wider range of specialists such as dermatologists. Also, private insurance is cheaper when you are young and have jobs. Also, private insurance companies provide services in the English language for international clients.
• Disadvantages: The candidate has to claim the insurance on their own. The doctors only provide the bill and the candidates are required to complete the paperwork of filling out the claim form, with the insurance provider. Also, the cost of the insurance is higher, in case the candidate is older and has more health problems. The cost of the insurance can reach up to 1500 Euros per month. Also, some of the private insurance companies reject the applications in case the candidate has any existing health condition.  Also, private health insurance comes with the risk of expensive treatment, as the doctors are not liable to explain the treatment cost to the insurance companies. The doctors can add up to 100 Euros for check-ups and other different types of items to the bill. Also, the kids and departments are not covered by the insurance and the candidates are required to pay extra for them. 

Also, you may be wondering why you get private insurance when you are young and switch to old when you are old.  However, it is a one-way street and can switch back to public insurance when being insured by a private insurance company.

Therefore the question is which insurance you should select. Although as a student private insurance is the best option. However in case you belong to the age group of 30 and thinking of bringing up a family in Germany while studying, then in that care public insurance is the best option. 

Work-related insurance

Work-related insurances are social security contributions (Sozialversicherungsbeiträge). It's generally deducted automatically from the salary and the candidate is not required to do anything extra regarding it.  A quick summary of work-related insurance are:

Unemployment Insurance (arbeitslosenversicherung)

In case you lose your job at any point, you will receive half of your salary to a certain limit from the state. The state of Germany provides state pensions known as the rentenversicherung. The government also covers the treatment costs related to work-related accidents known as the unfallversicherung.

Vehicle insurance

 In case you own a vehicle, in that case, you are required to carry automotive insurance known as Kfz versicherung or autoversicherung in Germany.  The insurance requires a registration of the car in Germany. There are three types of car insurance in Germany. These are:

• Third-party liability (haftpflicht): It is the minimum legal requirement covering all the damage to this party and other vehicles in case of an accident.  It does not take into consideration any damage caused to your vehicle if the accident was your fault. 
• Partial coverage (teilkasko): It covers the third part along with damage caused to your vehicles due to events such as theft, storm damage, and fire damage. 
• Comprehensive Coverage (vollkasko): The following insurance covers all the above-mentioned damages along with your vehicle in cases where the accident is caused because of you.

Optional Insurance in Germany

Liability insurance (Haftplichtversicherung)

It covers the damages that occurred to someone else or their property. The insurance is very cheap and amounts to less than 100 euros in a year and saves in different types of trouble.

Household items Insurance (hausratversicherung) 

This insurance is required in rental contracts in some cases. The insurance is only useful if you have valuable items in the home.

Conclusion

Although there are many different types of insurance present in Germany, these are the insurances that are required to be taken by the candidate as they move to Germany.