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Everything you need to know about discrimination in insurance and financial service pricing for newcomers in Germany
Germany’s insurance and financial system is among the most strictly regulated in Europe. Nevertheless, many newcomers – including migrants, refugees and newly arrived residents – face serious obstacles when trying to take out insurance or obtain financial services. Often, this is due to direct or indirect discriminatory practices.
Forms of discrimination in insurance and financial services
1. Refusal to provide services
Some insurers or banks refuse to:
open accounts, or
issue insurance policies
for people who do not have a permanent residence permit or German citizenship.
2. Higher prices or tougher conditions
Offering health insurance or car insurance to newcomers at significantly higher premiums, allegedly due to “higher risk”.
Requiring large deposits or initial balances when opening new bank accounts.
3. Additional documentation requirements
Asking for documents that are not normally required from German citizens, such as:
long-term rental contracts
permanent employment contracts
extensive additional proof of stability
The legal framework that protects you
General Equal Treatment Act (AGG)
The AGG prohibits discrimination in civil-law contracts, including:
Financial contracts, such as bank accounts, loans and credit cards
Insurance contracts of all kinds (car, liability, household, life, health etc.)
Payment Accounts Act (Zahlungskontengesetz – ZKG)
The ZKG guarantees every person who legally resides in Germany the right to a basic bank account (Basiskonto) – regardless of:
nationality
specific residence status (as long as lawful)
social background
A bank may therefore not refuse access to a Basiskonto solely because of your origin or passport.
How are insurance prices calculated?
Insurers generally base their pricing on the principle of individual risk. That means:
Premiums are calculated based on factors such as age, health status, claims history, driving record or occupational risk.
However:
Ethnic origin, nationality or religious affiliation may not be used as criteria for pricing or for accepting or rejecting customers.
If it is discovered that a higher price was charged only because of such characteristics, this may constitute unlawful discrimination, and the customer may be entitled to damages.
What to do if you experience discrimination
1. Ask for a written explanation
Request a written justification from the company (insurer or bank) stating why:
your application was rejected, or
you received significantly higher prices or worse conditions than expected.
2. File a complaint
First, contact:
the company’s customer service, and/or
its internal complaints or compliance department.
Ask for a formal review of your case and a written answer.
3. Contact anti-discrimination and consumer bodies
The Federal Anti-Discrimination Agency (Antidiskriminierungsstelle des Bundes) offers free legal initial advice and helps you assess whether the AGG has been violated.
The consumer advice centres (Verbraucherzentrale) can support you in:
drafting complaints,
checking contractual terms and conditions.
4. Take legal action
If no amicable solution is found, you can bring a civil claim for damages before a court.
You may claim both material damages (e.g. extra costs) and non-material damages (e.g. humiliation or discriminatory harm).
Practical tips for newcomers
Always compare offers from several companies before signing any contract.
Carefully read the general terms and conditions (AGB), especially sections dealing with:
additional premiums,
surcharges,
special clauses for “foreign customers” (if any).
Keep all correspondence and documents (emails, letters, notes of phone calls). They may serve as crucial evidence.
If you suspect discrimination, use the free advisory services of consumer centres or anti-discrimination bodies.
The role of civil society and organisations
Organisations such as Pro Asyl, AWO (Arbeiterwohlfahrt) and Caritas often provide:
legal support,
assistance in drafting complaints and claims,
help with forms and written communication.
They also carry out awareness campaigns to explain newcomers’ rights in the financial and insurance markets.
Conclusion
Discrimination in the insurance and financial sector is not only illegal, it also undermines newcomers’ trust in society and prevents them from building a stable life in Germany.
If you feel you have been discriminated against because of your origin, residence status or other personal characteristics, remember:
You have the right to stand up for yourself and enforce your rights.
German law in this area is clear and strict.
Numerous advisory centres and organisations are available to support and stand by you.
Key German terms
Allgemeines Gleichbehandlungsgesetz (AGG): General Equal Treatment Act protecting against discrimination in employment and civil-law contracts
Basiskonto: basic payment account to which every legally resident person in Germany is entitled
Schadensersatz: financial compensation for material damage
Antidiskriminierungsstelle des Bundes: Federal Anti-Discrimination Agency
Verbraucherzentrale: consumer advice centre, offering support in financial and insurance matters
The editorial team of this website strives to provide reliable information based on thorough research and multiple sources. Nevertheless, errors may occur or some information may be incomplete or not fully verified. Please regard this article as an initial, non-binding guide and always contact the competent authorities or qualified experts for binding, case-specific advice.
