Compulsory Insurance in GermanyWhat Expats Need to Know
Compulsory insurance (Versicherungspflicht) covers important areas such as health insurance, pension insurance, and long-term care insurance. This guide helps you understand your individual obligations and choose the optimal solution.
Key German Terms
Compulsory Insurance Creates Social Security
The German social insurance system is based on the principle of solidarity. Risks are shared collectively and benefits are distributed fairly. For expats, it is especially important to understand that compulsory insurance covers multiple areas.
Key Takeaways
What you need to know as an expat about compulsory insurance.
Compulsory Insurance
Certain groups are required to insure themselves against life risks.
Mandatory Insurances
Health, pension, unemployment, and long-term care insurance are obligatory.
Exceptions
Civil servants, self-employed, and high earners often have the option for private insurance.
Consequences
Non-compliance can lead to fines and consequences for your residence status.
Legally Required Insurances
The German social insurance system includes various mandatory insurances that protect citizens against existential risks.
Health Insurance
Mandatory for all residents. Covers medical treatments, medications, and hospital stays.
Pension Insurance
Contribution obligation for employees. Secures retirement and disability benefits.
Unemployment Insurance
Mandatory for employees subject to social insurance. Provides financial support in case of job loss.
Accident Insurance
Protection against occupational accidents and diseases. Employer pays the contributions.
Long-term Care Insurance
Coverage for care services. Mandatory for those with statutory health insurance.
Car Liability Insurance
Mandatory for all vehicle owners. Learn more
GKV or PKV: The Dual Insurance Approach
Germany has a unique dual system. While public insurance (GKV) applies to the majority, high earners have the option of private insurance (PKV).
GKV - Public
Statutory Health Insurance
PKV - Private
Private Health Insurance
Income Thresholds 2026
JAEG (Insurance Threshold)
77,400 Euro/year
Above = can choose PKV
BBG (Contribution Ceiling)
66,150 Euro/year
Max. income for GKV contribution
Who is Subject to Compulsory Insurance?
Compulsory insurance affects a variety of groups with different professional and social statuses.
Employees
Full-time and part-time employees are subject to compulsory insurance.
Students
Enrolled students at German universities with special rates.
Unemployed
Recipients of unemployment benefits remain subject to compulsory insurance.
Retirees
Persons with statutory pension insurance.
Trainees
Persons in vocational training.
EU Citizens
Special transitional rules for EU nationals.
Consequences of Violating Compulsory Insurance
Non-compliance with compulsory insurance can lead to significant legal and financial consequences.
| Type of Violation | Financial Risks | Legal Consequences |
|---|---|---|
| No health insurance | High fines and back payments | Restricted medical care |
| Non-payment of contributions | Loss of social benefits | Endangerment of residence status |
| False information when enrolling | Repayment demands | Damage claims |
Important for expats: Ignoring compulsory insurance is not an option - the consequences can be existentially threatening and jeopardize your residence status.
Pro Tip for Newcomers
Inform yourself early and comprehensively about your specific insurance obligations as an expat to avoid legal uncertainties and financial risks. Use our free comparison calculator to find the best health insurance for your situation.
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Frequently Asked Questions
What is compulsory insurance (Versicherungspflicht) in Germany?
Compulsory insurance in Germany means that certain groups of people are legally required to have insurance against various life risks, such as health insurance and pension insurance.
Which groups are subject to compulsory insurance?
Compulsory insurance primarily applies to employees, students, unemployed persons, retirees, and trainees. Voluntarily insured persons may also be included.
Which insurances are legally required in Germany?
Legally required insurances in Germany include health insurance, pension insurance, unemployment insurance, accident insurance, and long-term care insurance.
What are the consequences of violating compulsory insurance requirements?
Violating compulsory insurance requirements can lead to fines, exclusion from benefits, retroactive contribution obligations, and consequences for your residence permit.
We work with partners like CHECK24 and Tarifcheck. This comparison is free and non-binding. Updated: February 2026. This is not legal or financial advice.
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