Which insurance you actually need in Germany

1. The compulsory one

People resident in Germany need qualifying health coverage, and motor liability insurance is required before a vehicle can be registered. Professional, business, building or animal-related cover can also be compulsory in particular cases or federal states, so there is no accurate nationwide claim that every other policy is optional.

2. Private liability (Haftpflichtversicherung)

This covers damage you accidentally cause to other people or their property. In a country where individuals can be held personally liable for the full cost of the damage they cause, a policy costing a few euros a month against a potentially very large claim is unusually good value.

Many landlords ask whether you have it, and it is the policy German friends will tell you to get first.

3. Worth considering

Household contents insurance covers your belongings against fire, water damage and burglary, and matters more once you own things worth replacing. Legal expenses insurance covers disputes, commonly tenancy and employment. Income protection covers the loss of your ability to work, which is the largest financial risk most working people carry.

• Household contents (Hausrat) — once your possessions are worth insuring
• Legal expenses (Rechtsschutz) — tenancy and employment disputes
• Income protection (Berufsunfähigkeit) — the big one, and cheaper the younger you are
• Car insurance — compulsory before registering a vehicle

4. Buying without being sold to

Insurance in Germany is heavily intermediated and commission-driven. Comparison sites are themselves commercial. Decide which risks you actually want covered before you talk to anyone, and be sceptical of bundles that arrive with urgency attached.