German insurance terms explained: a glossary of insurance and contract words
By Ali Alawihee · Updated 5 November 2026
Police, Selbstbeteiligung, eVB number: German insurance paperwork is full of hard words, even for native speakers. This glossary explains the key terms by topic, each with an English equivalent and a one-line explanation. It is general information, not individual advice.
General contract terms
You will find these terms in almost every insurance contract. The rules are mainly set out in the Insurance Contract Act (VVG) and in your policy's general terms and conditions (AVB).
- Versicherungsnehmer – policyholder – the person who signs the contract and pays the premium; the insured person can be someone else.
- Versicherungsschein (Police) – policy document – sets out the key contract details; the insurer must issue it in text form.
- Beitrag (Prämie) – premium – what you pay for cover, for example monthly or annually.
- Laufzeit – contract term – contracts of more than three years can be cancelled at the end of year three with three months' notice (§ 11 VVG).
- Kündigungsfrist – notice period – how far ahead of the end date your cancellation must reach the insurer, usually one to three months.
- Sonderkündigungsrecht – special right of cancellation – lets you cancel early, for example after a claim or a premium increase without extra cover (§ 40 VVG).
- Widerruf – right of withdrawal – 14 days to withdraw from a new contract in text form without giving reasons; 30 days for life insurance (§§ 8, 152 VVG).
- Selbstbeteiligung – excess – the part of a claim you pay yourself; a higher excess usually means a lower premium.
- Obliegenheit – policyholder's obligation – duties such as reporting a claim promptly; breaching them can reduce the payout (§ 28 VVG).
- Deckungssumme (Versicherungssumme) – sum insured – the maximum the insurer pays per claim or per year.
- Wartezeit – waiting period – an initial period without benefits, common in dental or legal expenses insurance.
Car insurance terms
Third-party liability cover is compulsory for every registered vehicle (§ 1 Compulsory Insurance Act, PflVG). Comprehensive cover for your own car is optional.
- Kfz-Haftpflicht – motor third-party liability – pays for damage you cause to others; without it a car cannot be registered or driven on public roads.
- Teilkasko – partial comprehensive cover – damage to your own car from theft, fire, storm, hail, broken glass and, depending on the policy, animal collisions.
- Vollkasko – fully comprehensive cover – Teilkasko plus accident damage to your own car that you caused, and vandalism.
- Schadenfreiheitsklasse (SF-Klasse) – no-claims class – more claim-free years usually mean a lower premium; a claim moves you down.
- Typklasse – vehicle type class – rating of your car model by claims and repair costs, recalculated annually by the insurers' association GDV.
- Regionalklasse – regional class – rating of your registration district by its claims record, also set annually by the GDV.
- eVB-Nummer – electronic insurance confirmation number – a free seven-character code from your insurer that the registration office needs as proof of cover.
- Werkstattbindung – approved repairer clause – comprehensive claims are repaired at a garage chosen by the insurer, often for a lower premium.
- Stichtag 30. November – 30 November deadline – if your insurance year ends on 31 December, your cancellation must arrive by 30 November.
Health insurance terms
Everyone in Germany must have health insurance, either statutory or private. Even with statutory cover, you often pay part of the cost of dentures and some other services yourself.
- Gesetzliche Krankenversicherung (GKV) – statutory health insurance – cover through a public fund (Krankenkasse); contributions depend on income.
- Private Krankenversicherung (PKV) – private health insurance – premiums depend on age, health and tariff; employees can usually only join above the compulsory insurance threshold.
- Familienversicherung – family insurance – statutory cover for spouses, civil partners and children without their own contribution, if certain conditions are met.
- Zusatzbeitrag – additional contribution – set by each fund itself; if it rises, you have a special right to switch.
- Zusatzversicherung – supplementary insurance – private top-up cover for people with statutory insurance, for example for dental work, glasses or hospital stays.
- Eigenanteil – patient's share – what you pay yourself after the fund's contribution, typically for dentures.
- Festzuschuss – fixed subsidy – the fund pays 60 per cent of the cost of standard denture treatment (Regelversorgung), more with a Bonusheft.
- Bonusheft – dental check-up booklet – proves yearly check-ups; the subsidy rises to 70 per cent after five years and 75 per cent after ten.
- Krankengeld – sickness benefit – paid by the fund during longer illness, usually after six weeks of continued pay from your employer.
Home and liability terms
At home, two questions matter: what happens to your belongings and the building if something goes wrong, and what happens if you damage someone else's property?
- Hausratversicherung – home contents insurance – covers your belongings against, for example, fire, escaping water, burglary, storm and hail.
- Wohngebäudeversicherung – buildings insurance – covers the house itself; a matter for owners, not tenants.
- Privathaftpflicht – personal liability insurance – pays for damage you cause to others in everyday life and rejects unjustified claims.
- Mietsachschaden – damage to rented property – damage to the rented flat itself; often included in personal liability cover, with exclusions depending on the policy.
- Elementarschaden – natural hazard damage – heavy rain, flooding, sewage backflow, landslides or snow load; usually only covered by an add-on.
- Neuwert – new-for-old value – what equivalent new items cost today; contents insurance usually pays on this basis.
- Zeitwert – current value – an item's value after age and wear, usually below the new-for-old value.
- Unterversicherung – underinsurance – if the sum insured is below the actual value, the insurer pays only a proportional share (§ 75 VVG).
- Grobe Fahrlässigkeit – gross negligence – very careless behaviour; the insurer may reduce the payout, though some policies waive this (§ 81 VVG).
- Fahrraddiebstahl – bicycle theft – theft outside your home, for example from the street, is often only covered by a contents insurance add-on.
Energy and internet terms
Electricity, gas and internet contracts are not insurance, but they work in a similar way: term, notice period and price matter most. You will see these terms in offers and on your bill.
- Grundversorgung – default supply – supply by the company with the most household customers in the grid area; cancellable with two weeks' notice.
- Abschlag – monthly instalment – an advance payment based on your estimated consumption.
- Jahresabrechnung – annual bill – settles your actual consumption, leading to a credit or an additional payment.
- Zählerstand – meter reading – the figure on your meter; note it when moving in, moving out and switching supplier.
- Marktlokations-ID (MaLo-ID) – market location ID – the supply point ID on your bill and the most reliable basis for switching.
- Preisgarantie – price guarantee – the price is fixed for a set period, but taxes, levies and surcharges are often excluded.
- Mindestlaufzeit – minimum term – at most 24 months; contracts since March 2022 may then only continue indefinitely with up to one month's notice (§ 309 No. 9 BGB, internet: § 56 TKG).
- Neukundenbonus – new customer bonus – a one-off credit, often paid only after a set supply period; compare the price without it too.
- Preiserhöhung – price increase – after a unilateral price increase you can usually cancel without a notice period.
- Kündigungsbutton – cancellation button – companies offering online sign-up must also offer an online cancellation button (§ 312k BGB).
- Lieferantenwechsel – change of supplier – since 6 June 2025 the technical switch for electricity takes 24 hours on working days; notice periods still apply.
Legal terms: intermediaries, register and forms
The person offering you insurance can act in different roles. The role determines who they work for and how they are paid. The rules are mainly in § 34d of the Trade Regulation Act (GewO).
- Versicherungsvermittler – insurance intermediary – umbrella term for agents and brokers, who generally must be listed in the intermediary register.
- Versicherungsvertreter – insurance agent – works on behalf of one or more insurers and arranges their contracts.
- Versicherungsmakler – insurance broker – acts on behalf of the customer, arranges contracts from various insurers and is usually paid commission (Courtage) by the insurer.
- Versicherungsberater – insurance consultant – advises for a fee you pay and may not accept commission from insurers.
- Tippgeber – referrer – only puts you in touch with an intermediary; gives no advice, names no specific products and arranges no contracts, so needs no licence under § 34d GewO.
- Vermittlerregister – intermediary register – the chambers of commerce's free online register (vermittlerregister.info) for checking an intermediary's licence and registration number.
- Erstinformation – initial status information – at first contact, intermediaries must state in text form whether they are an agent, broker or consultant, and give their registration number.
- Textform – text form – a legible declaration naming the person on a durable medium, such as an email, letter or fax; no signature is needed (§ 126b BGB).
- Schriftform – written form – requires a handwritten signature; replaceable by the electronic form with a qualified electronic signature unless the law says otherwise (§§ 126, 126a BGB).
- Ombudsmann – ombudsman – free dispute resolution for consumers in disputes with insurers; private health and long-term care insurance has its own.