Clara - MW Expat

How Car Modifications Affect Your Car Insurance in Germany

Posted on June 13, 2025June 13, 2025 by Clara

Germany has a rich automotive culture, and car tuning has become an increasingly popular hobby among enthusiasts. From turbocharged engines to custom paint jobs, personalization is a form of expression and performance enhancement.

But before you start transforming your car, it’s important to understand how car modifications affect your car insurance in Germany and the legal and insurance implications to avoid trouble.

What Are Mandatory Car Insurance Requirements in Germany?

Before learning how car modifications affect your car insurance in Germany, you should understand the basics of car insurance in the country. Car insurance in Germany is mandatory and consists of three main types:

Haftpflicht (third-party liability). Required by law and covers damage you cause to others.
Teilkasko (partial cover). Adds protection against things like theft, vandalism, or natural disasters.
Vollkasko (comprehensive): Covers everything in Haftpflicht and Teilkasko, plus damage to your own vehicle—even if you’re at fault.

For a comprehensive breakdown, you can check out our complete guide about car insurance here.

What Counts as a Car Modification?

According to German Law (StVZO), a car modification is any change that deviates from your vehicle’s original factory setup. That includes:

Performance tuning. Turbochargers, engine remaps, or sports exhausts.
Visual upgrades. Custom paint jobs, decals, spoilers.
Structural changes. Suspension kits, non-standard rims.
Interior modifications. New infotainment systems, racing seats.
Lighting. Underglow, LED strips, or other non-TÜV-approved lighting.

Knowing what counts as car modification is key to understand how car modifications affect your car insurance in Germany.

How Do Insurers View Car Modifications?

1. Risk assessment process

When it comes to insurance, modifications can significantly change how insurers assess your vehicle’s risk profile. Any changes from the original factory setup raise questions: Will the car be driven more aggressively? Does it attract more attention from thieves? Could the new parts affect the car’s safety or reliability?

Insurers use this risk analysis to determine whether they want to insure your car at all, and at what cost.

2. Impact on premiums and policy eligibility

Because modified vehicles are often seen as higher-risk, insurance companies may raise your premium to reflect that. The more extensive the modifications, the higher the potential increase. In some cases, if the mods are considered too extreme or make the car non-compliant with road safety standards, your insurer may choose not to offer coverage at all. Some companies have stricter rules than others. While one insurer might accept a lowered suspension with a TÜV certificate, another might reject the same car outright. It really depends on how car modifications affect your car insurance in Germany based on the insurer’s specific guidelines.

3. Categories of Modifications and Their Impact

Performance enhancements. Modifications such as turbochargers, sports exhausts, or ECU tuning can significantly raise premiums due to increased accident risk.
Body kits, spoilers, rims, and paint jobs. These modifications may impact theft risk or the vehicle’s safety profile, resulting in higher premiums.
Interior upgrades. Custom infotainment systems, racing seats, or steering wheels can impact the valuation and safety of the vehicle.
Lighting and underglow modifications. These may be considered illegal under German road laws if not TÜV-approved and can void your insurance if undeclared.

What Are the Legal Requirements of Car Modifications?

In Germany, any modification that affects the safety, performance, or appearance of your car usually needs to be approved by the TÜV. Some parts come with an ABE (Allgemeine Betriebserlaubnis), which serves as a kind of blanket approval, but not everything does.

If your mod isn’t approved and you get pulled over, you could face fines. And if you’re in an accident, your insurer may refuse to pay out because the vehicle was technically illegal on the road.

How Do Modifications Affect Your Insurance Premiums?

Another reason how car modifications affect your car insurance in Germany is that they alter the very risk profile insurers base pricing on. Increased risk factors mean increased premiums. More powerful or flashy cars are statistically more prone to accidents or theft, leading to higher premiums. If you’re looking to save on insurance costs, check out our article with 12 practical tips to lower your car insurance premiums in Germany.

What are Alternative Insurance Options for Modified Cars?

If you’ve tuned your car or own a vintage model, there are insurance options designed just for you. Some insurers offer specialized policies tailored for modified vehicles. These plans often come with broader coverage but may have higher premiums to match the increased risk.

For classic cars or heavily customized rides, niche policies through specialized brokers can provide the right balance of protection and flexibility that standard insurance might not offer. This is another angle on how car modifications affect your car insurance in Germany: you may need to explore alternative providers or policy types.

Tips to Get the Best Insurance as a Modified Car Owner

1. Compare multiple quotes. Always shop around and get at least three quotes. Be upfront about your modifications so insurers can give you accurate pricing based on your specific vehicle.

2. Work with experienced brokers. Insurance brokers who know the ins and outs of modified cars can help you find better deals and make sure your coverage meets German legal requirements. If you need personalized assistance, you can book a call with one of our insurance experts here.

Modifying your car can be a rewarding hobby, but it’s important to understand how car modifications affect your car insurance in Germany. Always follow legal requirements and keep your insurer informed to ensure your coverage stays valid and your vehicle remains protected. Responsible modification means peace of mind on the road.

We’re here to help and support you in understanding your choices. We also have a live chat feature available on every page! If you have any questions, just click to start a conversation, and our team will be happy to assist you shortly.

FAQs

1. Do all modifications need to be declared?

Yes, it’s crucial to inform your insurer before and after modifying your car. Not doing so can be considered a breach of contract. Failure to disclose modifications can lead to denial of claims, especially in the event of an accident involving the modified parts.

2. Will small mods like new rims affect my insurance?

Possibly. If the rims are not OEM and significantly change the vehicle’s look or performance, insurers may adjust your premium.

3. What happens if I don’t inform my insurer about a modification?

Your claim may be denied, and your policy could be voided.

4. Are there insurers in Germany that specialize in modified cars?

Yes, some insurers cater specifically to tuning enthusiasts. A broker can help you find the right one.

5. Can I revert modifications to lower my premium again?

Yes, but you must inform your insurer and potentially undergo a new TÜV check to reflect the changes.

What our clients say about our services

I have had an incredible experience with Dabar Reimer. She is very well experienced and was able to provide solutions for multiple scenarios. I am very thank full to her and highly recommend having a discussion with Dabar before choosing your next insurance policy.

They have been so patient and thorough with helping during every step. I couldn’t imagine doing this on my own!

My agent, Anja Lampert is super friendly and helpful throughout the entire process. Excellent service provided.

The support I have received from Dabar was outstanding. She was always available to answer all my questions, and helped me out through the whole process. Thank you so much!

I have appointed with Alex as the to-go person for all matters. Honestly he is providing the best service someone can get in Germany, solving problems literally in minutes! Highly recommend MW Expat Solution!

It was a brilliant experience with MW expat. Right from filling up my details online, receiving a prompt call to book an appointment for detailed discussions of my needs to finally having a zoom call to talk to an advisor face to face was quick efficient, and re-assuring. I had the privilege to talk to Adriana Gonzalez, who was nothing short of brilliant. She was extremely composed, utterly professional, and very helpful.

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Riester Rente in Germany: Is It a Good Option for Expats?

Posted on June 4, 2025June 4, 2025 by Clara

If you’re an expat living and working in Germany, planning for retirement can be confusing. The Riester Rente in Germany can be a good option to consider, since it offers government bonuses and tax benefits to help you build a more secure financial future.

In this guide, we break down how the Riester Rente in Germany works, what benefits and drawbacks it brings, and whether it’s a smart choice depending on your income level, family situation, and long-term plans.

What Is Riester Rente in Germany and Who Is Eligible?

The Riester Rente is a government-subsidized private pension plan launched in 2002 to supplement the statutory German pension system. Every year, the government provides a basic allowance of €175 per adult as part of these subsidies, which helps boost your retirement savings.

You’re eligible if you’re:

Paying into the German state pension system.
A non-working spouse of an eligible participant (contribution minimum: €60/year).
An EU or non-EU expat with valid employment and pension contributions.

Is Riester Rente in Germany Worth It for Expats?

Whether the Riester Rente in Germany is a good fit for you as an expat depends largely on how long you plan to stay in the country and where you intend to retire.

Here are the main advantages you will have:

Annual government bonuses. You can receive a bonus of €175 per adult annually. If you have children, you also receive €300 per child born in 2008 or later, and €185 for those born before 2008.

Tax benefits. You can deduct up to €2,100 per year from your taxable income, potentially reducing the amount of income tax you owe.
Guaranteed capital. The amount you pay into the plan is protected. That means you won’t lose your contributions, even if the financial markets fluctuate.

However, there are potential drawbacks to consider:

Loss of government subsidies if you leave the EU. If you move to a non-EU country, you may have to repay the government bonuses you’ve received.
Long commitment required. To avoid penalties and benefit fully, your contract must run for at least 12 years.
Taxation on payouts. While the money you receive in retirement is usually taxed at a lower rate, it is still subject to income tax, and therefore Riester Rente in Germany is taxable during retirement.

All in all, if you’re in Germany long-term and plan to retire within the EU, riester rente can be very beneficial. If you’re here for a short-term assignment or plan to retire outside the EU, it might not be worth it.

How Government Subsidies and Taxes Affect You

One of the biggest advantages of the Riester Rente in Germany is the combination of government subsidies and tax benefits, but you have to meet certain requirements to unlock the full value.

To receive the maximum government bonus each year:

You must contribute 4% of your gross annual income, up to a maximum of €2,100.
The good news is that any government subsidies you receive count toward this amount. That means your personal contribution may be lower than 4%, depending on how much support you’re eligible for.

What are the Tax Benefits of Riester Rente in Germany?

Your annual Riester contributions are tax-deductible, up to €2,100 per year. This can lower your taxable income and reduce your tax bill while you’re working in Germany.

When you retire and start getting money from your Riester plan, payouts from your Riester plan are taxable income, which means you have to pay tax on it. But because most people earn less money in retirement, they usually pay less tax on these payments than they did while working.

What Happens to Your Riester Rente If You Leave Germany?

One of the main concerns for expats is what happens to your Riester Rente in Germany if you move away. The outcome depends heavily on where you move to.

If you relocate within the EU or European Economic Area (EEA), you can continue your Riester Rente plan without losing government subsidies or tax benefits.
If you move outside the EU/EEA, your Riester account becomes non-contributory, meaning you can no longer pay into it, and you may be required to repay all the government subsidies and tax advantages you’ve received so far.

You’re still entitled to receive retirement payouts later in life, but strict rules apply. If you decide to cancel your plan early, you’ll likely face:

Repayment of all government bonuses.
Back-payment of taxes on previous deductions.
Reduced returns, since early cancellation often leads to penalties and administrative costs.

What Are the Alternatives to Riester Rente in Germany?

Riester Rente isn’t the only option for expats in Germany. If it doesn’t align with your long-term plans or lifestyle, you might consider one of the following:

Private pension plans. These are often more flexible and internationally portable. They don’t come with subsidies, but they allow more control and can be tailored to your global career path.
Company pension schemes (bAV – betriebliche Altersvorsorge). If your employer offers this, take a close look. It often includes employer contributions and can offer tax-deferred savings. You can find further information about bAV on this article.
ETF-based investment portfolios. This option is ideal for expats who are comfortable managing their finances and want flexibility. These can be tailored to your risk profile and moved across borders more easily.

How to Maximize Your Riester Rente Plan as an Expat

If Riester Rente in Germany fits your needs, there are several strategies you can use to get the most value:

Contribute early in the year to ensure you receive the full annual bonus.
File your taxes properly every year to claim the full tax deductions.
Coordinate with your spouse. If only one of you qualifies, the other may still be able to receive benefits through a linked contract.
Combine with other pension options for a diversified retirement plan that balances security and growth potential.

All in all, with guaranteed capital, annual subsidies, and tax benefits, Riester Riente in Germany offers a solid foundation for long-term financial planning, especially if you plan to stay in Germany or within the EU.

However, it’s not for everyone. Before signing up, think about how long you’ll stay, where you plan to retire, and whether the rules and limitations fit your situation. For many expats, exploring alternatives like private pensions or company plans may provide more flexibility. If you need personalized assistance, feel free to book a call with one of our pension experts here. We’re here to help and support you in understanding your choices. We also have a live chat feature available on every page! If you have any questions, just click to start a conversation, and our team will be happy to assist you shortly.

FAQs

1. Can I keep my Riester Riente plan if I leave Germany?

Yes, you can keep your Riester Riente plan, but only if you stay within the EU or EEA. You can continue the plan and retain your benefits.

2. What’s the minimum investment?

You must contribute 4% of your gross income annually to receive full subsidies with Riester Riente in Germany. For non-working spouses, a minimum of €60 per year is required.

3. Is Riester Rente in Germany taxable?

Yes, but only during retirement. Payouts are taxed as income, though usually at a lower rate than when you were working.

4. Are freelancers eligible for Riester Rente in Germany?

Only if you’re voluntarily paying into the German public pension system (gesetzliche Rentenversicherung). Without that, you won’t qualify for the government subsidies.

5. Can I transfer my Riester Rente to another country?

No, you generally cannot transfer your Riester contract to a pension plan outside Germany. If you move abroad, especially outside the EU, the plan usually stays in Germany and may lose government bonuses.

What our clients say about our services

They have been so patient and thorough with helping during every step. I couldn’t imagine doing this on my own!

My agent, Anja Lampert is super friendly and helpful throughout the entire process. Excellent service provided.

The support I have received from Dabar was outstanding. She was always available to answer all my questions, and helped me out through the whole process. Thank you so much!

Secure your future abroad with tailored insurance & pension plans

Get expert advice on the best solutions for expats – personalized to fit your unique needs. Start planning today!

12 Smart Tips to Lower your Car Insurance Premiums in Germany

Posted on May 22, 2025June 4, 2025 by Clara

Car insurance is a necessary expense for every driver in Germany, but that doesn’t mean you should settle for the first offer or end up overpaying. With a bit of knowledge and a few smart choices, it’s possible to reduce your premiums without sacrificing essential coverage. And over time, those savings can really add up. In this article, we’ll walk you through 8 practical tips to lower your car insurance premiums in Germany. These insights can help you make informed decisions, optimize your coverage, and keep more money in your pocket.

Car Insurance in Germany

Understanding car insurance as an expat in Germany can be confusing, with new terms, coverage types, and legal requirements to understand. Knowing what you’re signing up for is crucial, whether you’re switching providers or registering your first vehicle.

If you’re still learning the basics, we recommend starting with our in-depth guide, where we explain everything you need to know about car insurance in Germany, from the different types of coverage to the registration process and average costs.

12 Tips to Lower your Car Insurance Premiums in Germany

1. Increase Your Voluntary Deductible

One of the most effective tips to lower your car insurance premiums in Germany is raising your voluntary deductible (that is, the amount you pay out of pocket in the event of a claim). Just make sure it’s an amount you’d be comfortable covering in case of an accident. For safe drivers, this often leads to noticeable savings.

2. Bundle Insurance Policies

Many insurers offer discounts if you combine multiple policies—like car, home, or liability insurance—with the same provider. This not only simplifies your paperwork but is also one of the easiest tips to lower your car insurance premiums in Germany.

Drive a Car That’s Cheap to Insure

Your choice of vehicle affects your insurance rate. Cars with high safety ratings, anti-theft systems, and modest engine power usually come with lower premiums. On the other hand, high-performance or luxury cars tend to cost more to insure.

4. Maintain a Clean Driving Record

Safe driving pays off. Insurance companies reward drivers with no history of accidents or traffic violations. Some providers also offer discounts for completing defensive driving courses or using safe-driving apps that monitor behavior. Therefore, maintaining a clean driving history is not just common sense, it’s one of the most consistent tips to lower your car insurance premiums in Germany over the long term.

5. Reduce Your Annual Mileage

Many insurers offer low-mileage discounts to drivers who drive less. If you work from home or use public transport often, inform your insurer and provide odometer readings to qualify for these savings.

6. Improve Your Credit Score

In Germany, your financial responsibility can play a role in how insurers assess your risk. A strong credit score might help you secure better rates. Paying bills on time and checking your credit report regularly can go a long way. Improving your score is a longer-term strategy, but still one of the more impactful tips to lower your car insurance premiums in Germany.

7. Opt for Usage-Based Insurance (UBI)

Usage-Based Insurance programs use telematics devices or mobile apps to track your driving habits. Safe and low-mileage drivers often benefit from substantial discounts. This option is ideal if you rarely use your car or drive conservatively.

8. Pay Annually Instead of Monthly

Monthly payments can seem more manageable, but they often come with added fees or interest. If you’re able to pay your annual premium upfront, paying your premium annually can help you avoid those costs, an often overlooked but effective tip to lower your car insurance premiums in Germany.

9. Install Safety and Anti-Theft Devices

Features like car alarms, immobilizers, dash cams, or GPS tracking can lower your risk profile in the eyes of your insurer. Many providers offer discounts for vehicles equipped with these types of security measures.

10. Avoid Unnecessary Coverage

Reevaluate your coverage regularly. If your car is older, consider dropping collision or comprehensive coverage. Also, check whether you really need add-ons like rental reimbursement or roadside assistance if they’re not being used.

11. Choose Your Coverage Wisely

Make sure your policy matches your actual needs. In addition to applying our tips to lower your car insurance premiums in Germany, something you should always take into account is that over-insuring can cost more than it’s worth. Consider your vehicle’s age, how often you drive, and your budget to find the right balance of liability, collision, and comprehensive coverage.

12. Join an Affinity Group or Professional Organization

Some insurers offer group discounts through alumni associations, unions, or professional organizations. Ask your HR department or association leaders if such partnerships exist and take advantage of the savings, as group discounts are a surprisingly effective way to reduce costs—yet another of the many tips to lower your car insurance premiums in Germany.

Reducing your car insurance premium doesn’t require drastic changes, just efficient choices. From avoiding necessary coverage to driving safely, these tips to lower your car insurance premiums in Germany can add up to substantial savings over time. With a little attention to detail and informed choices, you can keep your insurance costs under control. If you need assistance to understand car insurance or how premiums work, you can book a call with one of our insurance experts here. We also have a live chat feature available on every page! If you have any questions, just click to start a conversation, and our team will be happy to assist you shortly.

What our clients say about our services

They have been so patient and thorough with helping during every step. I couldn’t imagine doing this on my own!

My agent, Anja Lampert is super friendly and helpful throughout the entire process. Excellent service provided.

The support I have received from Dabar was outstanding. She was always available to answer all my questions, and helped me out through the whole process. Thank you so much!

Secure your future abroad with tailored insurance & pension plans

Get expert advice on the best solutions for expats – personalized to fit your unique needs. Start planning today!

How to Save Money with Private Health Insurance in Germany

Posted on May 15, 2025May 15, 2025 by Clara

If you’re living and working in Germany, you probably know that you’re legally required to have health insurance. But what many people don’t realize is that the type of insurance you choose can have a big impact on your finances over time. This is especially relevant for expats and freelancers. Knowing the difference between public and private health insurance in Germany can help you not only get better healthcare, but also make smarter decisions with your money.

In this article, we’ll explain how much you could actually save by switching from public to private health insurance in Germany and what would happen if you invested that extra money instead.

The Cost of Public Health Insurance in Germany

In Germany, public health insurance (Gesetzliche Krankenversicherung or GKV) is mandatory by law and based on your income. The total contribution rate is approximately 20.65% of your gross salary, broken down as follows: 14.0% for health insurance, 2.45% as the TK (Techniker Krankenkasse) additional contribution, and 4.2% for long-term care insurance for childless members aged 23 and over. This total contribution is usually split evenly between you and your employer.

However, contributions are capped at around €1,150 per month. For 2025, the income threshold is €73,800 per year, so even if you earn more, you won’t pay more than that maximum of approximately €1,150–€1,173/month for public health insurance. That might seem like a high amount of money and, for some people, especially freelancers who pay the full amount on their own, it can feel like a heavy monthly expense.

What’s the Alternative?

If you earn above a certain income threshold (like the €73,800/year mark), or are self-employed or a freelancer, you’re eligible to choose private health insurance in Germany (Private Krankenversicherung or PKV) instead.

Private health insurance plans are based on your age, health status, and coverage preferences, not your income. Therefore, with private health insurance in Germany, you’ll generally pay less in monthly premiums than you would with public insurance. Have you ever considered taking the amount you would have paid into the public insurance system and invest it instead?

Instead of paying hundreds more each month into the public system, you could take the difference and invest it in a way that fits your life in Germany as an expat. Whether you’re here short-term or planning to stay for the long haul, this simple investment strategy can have a big impact on your financial future and even help you build a retirement fund.

So by making this choice, you’re not just contributing to the system, you’re creating a safety net that actually grows with you.

Why Freelancers Should Especially Pay Attention

As mentioned above, public insurance doesn’t adjust based on your expenses, it just keeps increasing with your income. For freelancers, this means high monthly costs with very little control.

Private health insurance in Germany, however, puts you in control. You can tailor your plan to fit your needs, whether that’s basic coverage at a lower monthly rate or a more comprehensive package. All in all, you decide the level of coverage and what you save on premiums, and you can reinvest that money in something that benefits you, like your business, personal development, or long-term investments for your retirement years.

Real-Life Example: What If You Invested the Difference?

Let’s say you’re a 30-year-old expat working in Germany and currently paying around €1,150 per month for public health insurance (GKV). That might be the case if you’re a freelancer or self-employed, since you’re responsible for the full contribution.

If you switch to private health insurance in Germany (PKV), your monthly premium could drop to around €481. That’s a difference of €669 per month—a significant amount!

Now, if you’re an employee, things look a bit different. Your employer covers half of your public insurance contribution, so your share is likely around €575 per month. In that case, switching to private health insurance in Germany could still save you about €94 per month—and some employers also contribute to your private insurance premiums.

Even after factoring in things like cashback and other benefits, a freelancer could still have around €334 extra in their pocket each month. Now imagine you decide to take just €200 of that and invest it regularly into a long-term fund. So if you are 30, you have 37 years until the official pension age in Germany, meaning 37 years of contributions into the fund. With consistent investing, that could result in a pension of €1,188 per month until you’re 90 years old.

By age 52, that fund alone could already provide you with €397.79 per month until you turn 90, a nice boost alongside your main income or as a supplemental pension. And it all started with the money you saved by switching insurance plans and making no extra efforts, just a smarter way to use money you were already spending.

Private Health Insurance in Germany: Why Is It A Smarter Way to Secure Your Future?

In conclusion, choosing private health insurance in Germany isn’t just a financial upgrade, it’s a proactive step toward better healthcare, smarter money management and long-term security.

You benefit from:

Lower monthly premiums compared to public plans
Faster, higher-quality healthcare when you need it most
Customized investment opportunities that build a reliable safety net over time

All in all, the decision between public and private health insurance in Germany can shape both your quality of life and your financial freedom. Choosing private health insurance isn’t just about saving money, it’s about building a safety net that grows with you over time. It means getting better healthcare, more control over your finances, and peace of mind for the future.

We highly recommend taking a moment to review your options. If you need assistance to clarify your options, you can book a call with one of our insurance experts here. We’re here to guide and support you in understanding your choices. We also have a live chat feature available on every page! If you have any questions, just click to start a conversation, and our team will be happy to assist you shortly.

What our clients say about our services

They have been so patient and thorough with helping during every step. I couldn’t imagine doing this on my own!

My agent, Anja Lampert is super friendly and helpful throughout the entire process. Excellent service provided.

The support I have received from Dabar was outstanding. She was always available to answer all my questions, and helped me out through the whole process. Thank you so much!

Secure your future abroad with tailored insurance & pension plans

Get expert advice on the best solutions for expats – personalized to fit your unique needs. Start planning today!

Retirement in Germany for Expats: Understanding Pensions and Insurance

Posted on May 10, 2025 by Clara

Germany is becoming an increasingly popular destination for retirees from around the world. With its high-quality healthcare system and strong, stable economy, it offers a compelling environment for those looking to spend their retirement abroad. However, understanding the overall process of retirement in Germany for expats as well as the details of the healthcare and pension systems is essential for a successful transition.

Why Does Germany Appeal to Retirees?

Retirement in Germany for expats has become popular due to its excellent healthcare, stable economy, and high quality of life:

High quality of life. Safe cities, efficient public services, and a strong social welfare system make daily life comfortable and secure for retirees.
Excellent healthcare. Germany’s healthcare system is ranked among the best in the world, offering retirees reliable access to top-tier medical care when they need it most.
Rich culture. From classical music to world-class museums, Germany provides a wealth of enriching cultural experiences.
Efficient infrastructure. With reliable public transport and well-maintained roads, getting around Germany is easy, making mobility convenient and stress-free.

2. Legal Requirements for Retiring in Germany

For Non-EU citizens, there are a few key requirements to fulfill in order to enjoy a smooth retirement in Germany for expats. These include:

Proof of financial self-sufficiency. You’ll need to demonstrate that you can support yourself financially through pensions, savings, or other reliable income sources.
Valid health insurance. Ensuring you have comprehensive health insurance coverage is essential. This could be private or public health insurance, depending on your situation.
Local registration (Anmeldung). Once you arrive in Germany, you’ll need to register with the local authorities within two weeks, a process known as Anmeldung. This is necessary for obtaining your residence permit.

For EU citizens, the process is a bit simpler. You don’t need a specific residence permit to retire in Germany, as you have the right to live and work in the country. However, you’ll still need to ensure you have adequate health insurance and register your address (Anmeldung) upon arrival.

3. Health Insurance Options for Expat Retirees in Germany

In Germany, health insurance is a requirement for all residents, including retirees. When it comes to health coverage, retirees have two main options:

Public health insurance (GKV)

This is often the go-to choice for EU citizens or those who are receiving a pension from a German source. Despite being generally more affordable, public insurance tends to have longer wait times and more limited options for specialized care.

Private health insurance (PKV)

If you’re self-funded in retirement, you can opt for private health insurance. This plan offers more tailored services and faster access to specialists. While premiums can be higher and may increase with age, the added peace of mind and premium services make it a worthwhile investment for many retirees looking for comprehensive and high-quality healthcare.

3.1. Choosing Between Public and Private Insurance

When deciding on the right insurance plan, it’s important to consider your personal needs and circumstances:

Public insurance. While premiums are income-based and include family coverage, public insurance tends to have longer wait times and more limited options for specialized care.
Private insurance. Private insurance offers shorter wait times, broader coverage, and more personalized services, making it the preferred option by most retirees.

3.2. Health Insurance Costs in Retirement

The costs of health insurance in Germany depend on whether you choose public or private coverage:

Public insurance. Typically costs around 14-15% of your pension income. This rate is income-based, meaning the amount you pay will depend on the size of your pension or other earnings.
Private insurance (PKV). Premiums for private insurance generally range between €400 and €800 per month, depending on factors such as age, health status, and the level of coverage you select.

Additionally, both systems may involve co-payments for certain services and medications. These are usually capped annually, ensuring you don’t face unlimited costs for frequent treatments.

4. Understanding Pensions in Germany

As an expat retiree in Germany, it’s essential to understand how the pension system works and how it might apply to you:

State pension system (Gesetzliche Rentenversicherung)

If you’ve worked in Germany for a certain number of years, you may be eligible for the state pension. The amount you receive depends on your contributions during your working years. However, expats who haven’t contributed to the German system may need to explore alternatives.

Pension portability

If you’ve accumulated pensions in other countries, Germany has agreements with many nations to prevent double taxation and allow pension transfers. You can find further information on the process of transferring your pension from abroad on this article.

Private and company pensions

Expats may also have access to private pension plans or the German company pension (bAV). While the public pension system might not apply, these alternatives can provide additional financial security in retirement. It’s important to assess these options and consult a financial advisor to ensure you’re maximizing your retirement funds.

5. Taxation for Retired Expats

Germany taxes worldwide income, including pensions. Therefore, a successful retirement in Germany for expats also requires navigating taxation. Here are the key points to keep in mind:

Double taxation agreements. Germany has agreements with countries such as the US, UK, and Canada to prevent double taxation on pensions and other income.
Tax returns. Depending on your income sources, you may be required to file a tax return.
Consulting a tax advisor. It’s highly recommended to consult with a tax advisor familiar with expat taxation to navigate the complexities.

6. Access to Healthcare Services

Healthcare access is a major asset in retirement in Germany for expats. Here are some tips:

Find English-speaking doctors. You can easily find English-speaking doctors through expat networks or through recommendations from your insurer.
Emergency services. Dial 112 for emergency medical services, which are prompt and efficient.
Routine care. Preventive care and routine screenings are well-integrated into the healthcare system, ensuring early detection and health maintenance.

At MW Expat, we can help connect you to these services to ensure smooth access to care. We are here to help, so do not hesitate to reach out to us!

7. Tips for Settling in as a Retiree

Learn basic German. Understanding the language helps with daily tasks, interacting with locals and navigating the bureaucracy.
Join expat clubs, language courses, or volunteer groups. These are great ways to build social connections and integrate into your new community.
Utilize city hall and expat services. These resources can help with permits, documentation, and understanding local regulations.
Consider budgeting for living costs. Make sure you account for rent, health insurance, and everyday expenses when planning your finances in Germany.
Explore tax advantages. Germany offers tax deductions for certain retirement-related expenses and has agreements to prevent double taxation, which may benefit expats.
Look into local discounts. Many places offer senior discounts, from public transport to museums, making life more affordable.

Retirement in Germany for expats can be a fulfilling and enriching experience. With its outstanding healthcare, cultural offerings, and stable environment, Germany remains a top choice for international retirees. From securing health insurance to understanding pensions and taxes, being well-informed is key for a smooth process.

If you need assistance with planning your retirement or advice on choosing the right type of health insurance, feel free to reach out to us here. We also have a live chat feature available on every page! If you have any questions, just click to start a conversation, and our team will be happy to assist you shortly.

What our clients say about our services

They have been so patient and thorough with helping during every step. I couldn’t imagine doing this on my own!

My agent, Anja Lampert is super friendly and helpful throughout the entire process. Excellent service provided.

The support I have received from Dabar was outstanding. She was always available to answer all my questions, and helped me out through the whole process. Thank you so much!

Secure your future abroad with tailored insurance & pension plans

Get expert advice on the best solutions for expats – personalized to fit your unique needs. Start planning today!

Understanding Car Insurance in Germany: A Comprehensive Guide

Posted on April 28, 2025May 2, 2025 by Clara

Whether you’ve just moved to Germany or have been living here for a while, understanding how car insurance works is essential. It’s not only a legal requirement, it’s also key to protecting your finances, your vehicle, and your peace of mind.

In this guide, we will walk you through everything you need to know as an expat, from mandatory third-party coverage to comprehensive plans, and share practical tips to help you save up to 45% on your premiums.

Is Car Insurance Mandatory in Germany?

Yes, having car insurance in Germany is compulsory. According to German law, every car must be covered by at least third-party liability insurance (Haftpflichtversicherung) before it can be driven or even registered. Without it, your car won’t be allowed on the road, and you won’t receive a registration certificate (Zulassungsbescheinigung).

This regulation is designed to protect all road users and ensure that anyone involved in an accident has access to financial compensation.

What Happens If You Drive Without Insurance?

Driving without insurance is a serious offense. Penalties include heavy fines, loss of driving privileges, and even criminal charges. Your car can also be impounded.

In short, it’s not worth the risk. Always make sure your vehicle is properly insured before driving, not only to stay on the right side of the law but also to protect yourself and others.

Types of Car Insurance Available in Germany

Germany offers three main types of car insurance, each with different levels of protection. Choosing the right one depends on your car’s value, age, and how much risk you’re comfortable with.

Third-Party Liability (Haftpflichtversicherung)

This is the minimum legal requirement for all drivers in Germany. It covers damage or injury you cause to others, whether it’s to another vehicle, property, or a person. However, it does not cover any damage to your own car.

Third-Party Fire and Theft (Teilkasko)

This mid-level option includes everything covered by third-party insurance, plus additional protection against theft, fire, glass damage, animal collisions, and natural events like storms or floods. It’s a good balance of affordability and coverage, especially for older but still valuable cars.

Fully Comprehensive (Vollkasko)

This is the most extensive coverage available. Along with all the benefits of Teilkasko, it also covers damage to your own car, even if you’re at fault. It also covers vandalism and hit-and-run incidents. This type of insurance is typically recommended for new or high-value vehicles where repair costs can be significant.

If you need further information, check out our article on types of vehicle insurance in Germany here.

What is an EVB Number?

The EVB (Elektronische Versicherungsbestätigung) is a unique digital code issued by your insurance provider. This number confirms you have valid insurance and is required when registering a vehicle.

How to Get an EVB Number From Your Insurer

You can request your EVB code online or over the phone once you finalize your insurance plan. The code is sent immediately and is valid for up to 3 months.

How Are Car Insurance Premiums Calculated?

Role of No-Claim Bonus (Schadenfreiheitsrabatt)

Germany uses a bonus system that rewards claim-free years with reduced premiums. The more accident-free years you have, the lower your rate. Transferring an existing no-claims record can significantly reduce your costs.

Driving Experience and License Duration

If you’ve held a license for less than three years, you’re automatically placed at level 0 (100% premium). After three years of safe driving, you advance to level ½, and then to level 1, reducing your costs annually.

Car Model, Value and Age

Newer or high-performance vehicles typically incur higher premiums. Conversely, older, low-risk cars cost less to insure

Area of Registration and Risk Profile

Urban areas like Berlin or Frankfurt often carry higher risk ratings, while rural zones offer cheaper premiums. Theft rates, accident statistics, and weather risks all affect your insurance regionally.

Required Documentation and Process

To request a no-claim bonus transfer, you’ll need to provide a certificate from your previous insurer confirming the number of accident-free years you’ve had. This document should ideally be officially translated into German or English, depending on the insurer’s requirements.

Once submitted, the German insurer will evaluate the certificate and assign you to the appropriate Schadenfreiheitsklasse (SF class)—such as SF1, SF2, or even SF5, depending on the number of years and their internal policies.

Tips to Get Cheap Car Insurance in Germany

Consider an SF5 Deal for Expats. At MW Expat, we offer an exclusive SF5 plan specifically tailored for expats. With this plan, you pay only 55% of the standard premium, even if you don’t have a formal no-claim record in Germany. If you want to know if the SF5 deal is right for you, do not hesitate to reach out to one of our vehicle insurance experts, we’re here to help you find the best coverage at the best possible rate.

Avoid unnecessary coverage add-ons. Skip roadside assistance or legal coverage if you’re unlikely to use them, especially if your credit card or bank already offers similar services.
Maintain a clean driving record. Safe driving not only protects lives but also keeps your insurance costs low year after year.

Average Cost of Car Insurance in Germany

Premiums typically range from €500 to €3,000 per year depending on coverage type, vehicle, and risk profile. Look out for additional charges like administrative fees, monthly payment surcharges, and deductibles that may apply when filing a claim.

All in all, car insurance is key to protecting yourself, your vehicle, and your finances while living in Germany. Whether you’re new here or have been on the road for a while, having the right coverage will give you peace of mind and keep you moving forward with confidence. If you need personalized assistance, you can arrange a free consultation with one of our vehicle insurance experts here.

What our clients say about our services

They have been so patient and thorough with helping during every step. I couldn’t imagine doing this on my own!

My agent, Anja Lampert is super friendly and helpful throughout the entire process. Excellent service provided.

The support I have received from Dabar was outstanding. She was always available to answer all my questions, and helped me out through the whole process. Thank you so much!

Secure your future abroad with tailored insurance & pension plans

Get expert advice on the best solutions for expats – personalized to fit your unique needs. Start planning today!