Insurance in Hungary

Insurance in Hungary

Insurance in Hungary promises nothing less than making life convenient and comfortable for all whether living or just visiting the country. It’s common not to plan for the good experiences in Hungary yet mostly miss out on giving enough thoughts about risks. Of course nobody wishes that things go wrong when in Hungary but at the same time, shit just happens . Nobody ever wishes  to find self in an accident, sick, lose a property or any such things yet they still happen.

In Hungary, taking insurance is important since it protects the residents from financial loss.  Also, taking any form of insurance is a form of security.  In most cases, there is a fear of a sudden loss; thus, taking insurance covers any sudden loss.  The other importance of taking insurance in Hungary is spreading risk, encouraging savings, and source for collecting funds.

Health Insurance Hungary

Health insurance is free for all Hungarian citizens.  It is publicly funded, and the coverage is also extended to the non-Hungarian citizens insured through National Health Insurance Fund.  The public hospitals in the nation provide a high standard of care.

The EU citizens are entitled to healthcare through European Health Insurance Card.  It means that they get the same medical treatment as Hungarian citizens.  However, when one wants to avoid overcrowding and bureaucracy in public hospitals, they may take private health insurance.  The reason is that the private facilities are normally well prepared.

As for the foreigners in Hungary, who are from countries that are non-EU, they can get free emergency health services.  They are supposed to take health insurance for the period that they will stay in Hungary.  The following are the medical services given to Hungary citizens free.

  • Dental treatment is free up to 18 years of age.
  • Treatment at home in reducing public healthcare system burden
  • Outpatient care
  • Preventative testing and early detection
  • Impatient care

Unemployment Insurance

There are two types of unemployment benefits in Hungary, including job seeker benefit and job seeker aid before pension.  To receive the benefits, the required conditions include working at least 360 days in 3 years before being jobless.  The maximum benefit entitlement for job seekers is about 90 days, while the minimum is 36 days.  A job seeker is also paid 60% of the previous amount earned.

The job seeker aid before the pension can be given to an individual who:

  • Has enough retirement contribution period
  • Is within 5 years of reaching retirement age
  • Does not receive benefits before the retirement age
  • Has been getting job seeker benefit
  • shall reach retirement age in not more than 5 years, within 3 years of the termination of the job-seeker benefit

In Hungary, the unemployment benefit may stop before reaching 90 days.  It can stop:

  • When the beneficiary requests so
  • If the beneficiary dies
  • When the beneficiary registers as a full-time student
  • At the end of the entitlement period
  • In case the beneficiary gets income from other activities
  • If the beneficiary gets benefits related to individuals with changed working capacity

Car Insurance

The vehicle insurance does vary from one company to the other.  Also, the factors considered in getting the cost of vehicle insurance include:

  • Registration place of the car
  • Age of the driver and driving history
  • Make and model of the vehicle
  • In case there are small children in the family

The two main types of insurance in Hungary include Third-party liability insurance and comprehensive insurance.  Third-party insurance is mandatory, and it covers a person against loss caused to third parties.  The things indemnified in the insurance include damages to property, damages to vehicles, death, and physical injuries.

Comprehensive car insurance helps in paying for the repair or replacement of the vehicle in case of damage or theft.  It also covers damage from falling objects, vandalism, and fire.  Unfortunately, it does not cover collision.

Home Insurance

Home insurance in Hungary ensures that the residents are protected in case something happens.  In most cases, it is a requirement when one needs a mortgage.  If one does not take this type of insurance, then they will pay for the repairs and replacements if something happens.

Home insurance is important to the Hungarians as it enhances financial protection in case one’s home is stolen or damaged.  Moreover, it provides alternative accommodation when something happens to your home, and you need shelter.  The insurance is also good for home emergencies and covers accidents such as spills on carpet.

Life Insurance

The future is unknown.  Thus, life insurance helps in protecting one as well as the family by leaving them with a non-taxable amount in case of death.  Also, in some instances, the insurance covers personal loans as well as mortgages.

Life insurance is something that one should think about when they are still young.  They should not reach old age to commence thinking it over.  The reason is that when one takes it early, there are high chances of better deals.  Apart from death, the insurance covers terminal and chronic illnesses.

Travel Insurance

Any person living outside the Schengen area with no visa-free arrangements need a Schengen visa as well as travel insurance.  It helps in moving through Hungary and Europe with freedom.  Additionally, Hungarian residents travelling outside the nation need travel insurance.  Currently, because of Coronavirus, most of the insurance firms provide medical costs, including Covid-19, as long as one travels according to the World Health Organization guidelines.

The travel insurance also covers personal possessions as well as luggage.  The cover is provided in case of damage, theft, and loss of a bag.  Moreover, there is provision for personal accident and activity cover, cancellation cover, and legal expenses.

Pet Insurance

While in Hungary, it is important to take insurance for pets.  The insurance covers some of the health conditions, including hypothyroidism, hip dysplasia, epilepsy, blood clotting disorders, and eye disorders.  Basically, it reduces the cost of veterinary expenses.

Public Liability Insurance

Public liability insurance is important in Hungary as it protects people from third-party claims against loss, injury, death and negligence.  Also, it can protect one against economic or financial loss and damage of property.

Popular insurance companies in Hungary

  • Vienna Insurance Group
  • European Travel Insurance Company
  • Association of Hungarian Insurance Companies
  • Vértes Autó
  • Grantis Hungary
  • Berta – Vadász Autócentrum
  • Mkb Nyugdíjpénztárt És Egészségpénztárt Kiszolgáló
  • Rollet
  • MNG International Investments
  • Euler Hermes
  • AEGON Magyarország Általános Biztosító