The Four Types of Insurance in Switzerland That Are Compulsory

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Swiss residents and everyone that desires to relocate to Switzerland either as a student, permanent resident or on a work permit want to know the types of insurance in Switzerland that are compulsory.

What happens if you fail to purchase these mandatory forms of insurance in Switzerland? Simple. If you fail to purchase health insurance in Switzerland your local authority will sign you up for a plan. This will result in a higher health insurance premium.

Below are the four types of insurance that are compulsory for everyone living in Switzerland.

  • Basic health insurance
  • Accident insurance
  • Motor vehicle insurance for vehicle owners
  • Buildings liability insurance for homeowners

Is there a mandatory form of insurance for employees in Switzerland?

As an employee in a company located in Switzerland, you are expected to contribute to three forms of compulsory insurance known as social security.

These three compulsory forms of insurance that you must contribute to as an employee are state pension (AHV/AVS contribution), accident insurance (IV/AI contribution) and disability insurance (ALV/AC contribution). 

Social security contributions are automatically deducted from the employee’s salary.


The four must-have forms of insurance by all Swiss residents

1. Basic health insurance

In Switzerland, basic health insurance covers the costs of treatment of sickness, maternity services and accidents.

You are expected to purchase your health insurance policy within your first three months of moving to Switzerland, otherwise, the local authority will force one on you at a higher premium. Basic health insurance in Switzerland is not negotiable so long as you are staying for more than three months.

The government doesn’t allow citizens to spend more than 10% of their salary on basic health insurance. And as a result, they subsidize it for those who are either earning low or no salary at all. The limit of your policy is determined by your salary.

2. Accident insurance

If an insured person is involved in an accident or suffers any form of occupational illness, accident insurance covers the damages incurred. 

What are the benefits of accident insurance? It covers the cost of medical treatment and financial support. The premiums for insurance for occupational accidents and illnesses are paid by the employer. The premiums for insurance for non-occupational accidents are paid by the employee.

If for any reason you are not in any employment, you are required by law to take out accident cover from your basic health insurance.

3. Motor vehicle insurance

In Switzerland, basic motor vehicle insurance also known as a third-party cover is compulsory for all drivers. It covers for damages caused to others.

On the contrary, comprehensive or semi-comprehensive motor vehicle insurance will cover both damages to others and to the insured. You can get both the third-party vehicle liability insurance and the complete motor insurance from any of the Swiss insurance companies.

Before you can receive Swiss license plates from the Swiss vehicle authorities, you will be required to present evidence of your third-party vehicle liability insurance contract. 

What is the average cost of motor vehicle insurance in Switzerland? In Switzerland, insurers charge an average of CHF2,150 per annum.

4. Buildings insurance in Switzerland

Buildings insurance is a type of insurance in Switzerland that covers damages to buildings. It’s compulsory for all Swiss property owners.

What do buildings insurance cover? It covers the risks of fire, explosions and natural disasters. If you need more protection as a tenant for your belongings like your television, refrigerator, furniture, etc., consider purchasing a household contents insurance policy. The average cost of household contents insurance is between CHF 150 and 300 per annum.


What else if I already have these mandatory forms of insurance in Switzerland?

Mandatory forms of insurance in Switzerland

These mandatory insurance policies we mentioned earlier fulfill all legal requirements in Switzerland. However, if you want to enjoy all-round protection, getting additional coverage is the right thing to do. 

Typical examples of additional insurance cover that are not mandatory in Switzerland are household insurance and third-party liability insurance.

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