The flip side of having so many types of possible insurance in a risk-averse country like Germany is that it can be complicated to figure out what’s covered and when. This is particularly true if you have an accident that leaves you unable to work – either temporarily or permanently.
If you’re employed in Germany and covered through a public insurer like TK or AoK, you will typically already be covered for any accidents that may happen in the course of your duties. In addition to your health insurer, your employer will also typically have to have accident insurance that covers all employees if something happens to them while at work. This insurance usually covers employees on their way to and from work as well – with coverage lasting from the time they leave their home for work to the moment they return.
This occupational insurance will also typically cover workplace illnesses as well, should there be any.
But what happens if you have an accident in your private time, and thus it’s not covered by your workplace-related insurance? This can be particularly relevant for people who drive a lot outside work or take part in extreme sports.
If an accident like that happens, your health insurance will cover the medical treatments you need for acute injuries. But you may end up being on the hook for other costs. These can include the need to make your home accessible or benefit payments if the accident is expected to leave you off work, either for a long period of time or even permanently.
If you’re left unable to work, private accident insurance will typically pay you daily allowances so that you can continue to support yourself financially. If you’re left permanently unable to work, you will typically receive an invalidity benefit.
Depending on what the accident involves, you may also be on the hook for the cost of search and rescue operations or even plastic or dental surgery.
Private accident insurance – or Unfallversicherung – can step in to cover these costs if you’ve taken out a policy. If you happen to die in the accident, it will also pay out a death benefit to your loved ones to help fund funeral costs, for example.
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What if I’m not able to work due to illness and not an accident?
A more comprehensive – and typically more expensive - version of accident insurance is Berufsunfähigkeitversicherung, which replaces the income of someone who becomes completely unable to practice their profession. People in higher-risk professions like builders or doctors may have this type of insurance. If they become unable to work anymore, this insurance will pay out their salaries until they reach retirement age.
However, this type of insurance also covers someone if they become unable to work due to illness as well as accidents. Accident insurance, by contrast, will only pay out daily allowances or invalidity benefits if you become unable to work due to an accident, rather than an illness.
Although Berufsunfähigkeitversicherung is more comprehensive, it’s also a lot more expensive. It’s difficult to get a premium for less that about €25 a month, and the income replacement rates are very low. Policies with higher payout rates in the event of being unable to work anymore can run you over €100 per month.
By contrast, many accident insurance plans are available for a base rate of around €9.50 a month. Many more comprehensive plans with a high degree of protection are available for €15-€20 per month.
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