Lithuania (LT)
Lithuania is the largest and most southerly of the three Baltic states, a semi-presidential EU republic celebrated for its remarkably preserved Baroque capital Vilnius (UNESCO World Heritage), dramatic coastal dunes at Neringa (also UNESCO), vibrant startup and fintech ecosystem (home of Revolut HQ, Vinted, Nord Security, and Hostinger), rapidly rising living standards, and a resilient population with deep cultural roots stretching back to one of the last pagan civilisations in Europe to adopt Christianity.
Insurance Guide
Which insurances you actually need in Lithuania, prioritised.
Insurance in Lithuania is a mix of mandatory state-administered social insurance (via Sodra) and private voluntary insurance. The compulsory elements are: PSD (health insurance contributions) and sodros (social insurance) through employment. Private insurance market is growing rapidly and products are affordable by Western European standards. Key private insurers include Lietuvos draudimas, Ergo, Compensa, BTA, PZU, AAS Gjensidige, and Swedbank Draudimas.
Legally Mandatory
- - PSD (privalomasis sveikatos draudimas) — compulsory health insurance: paid through employment/Sodra (6.98% combined rate)
- - Valstybinis socialinis draudimas — state social insurance: paid through Sodra with every employer
- - TPVCA (transporto priemonių valdytojų civilinės atsakomybės draudimas) — compulsory third-party motor liability insurance for all vehicle owners
Compulsory vehicle third-party insurance (TPVCA)
Third-party motor liability insurance — covers damage you cause to others with your vehicle. Mandatory for all registered vehicles.
Who needs it: Every vehicle owner in Lithuania
Annual cost: €80–200/year (depending on car age, engine size, driver's record)
Compare online at draudimas.lt or through insurance comparison sites. The TPVCA sticker must be displayed in the vehicle. Driving without TPVCA results in fines. EU visitors: your home country TPVCA is valid in Lithuania — check Green Card coverage.
Health Insurance Top-up
Private health insurance supplementing PSDF coverage — enables faster access to private specialists, dental, physiotherapy, and optical care
Who needs it: Anyone who wants to avoid public sector waiting times or access services not covered by PSDF (dental, physio, optical)
Annual cost: €200–600/year individual; many employers provide as a benefit in IT and multinational companies
Group employer plans are the most affordable. Individual plans vary widely in coverage. Always read what dental coverage is included — adult dental is a key gap in the public system.
Comprehensive vehicle insurance (KASKO)
Full vehicle insurance covering your own vehicle damage, theft, weather damage, and accidents regardless of fault.
Who needs it: New or high-value car owners, those with bank-financed vehicles (often required by lender)
Annual cost: €300–1,200/year (depending on vehicle value and driver profile)
If your car is financed with a bank loan (lizingas/paskola), full KASKO coverage is typically required by the lender. For older vehicles, KASKO may not be cost-effective — TPVCA alone may suffice.
Home contents insurance
Covers loss or damage to personal belongings and furnishings in your rented or owned property. Often includes personal liability (civilinė atsakomybė).
Who needs it: All renters and homeowners
Annual cost: €50–200/year
Some rental contracts require home contents insurance. Liability extension is important — covers accidental flooding of a downstairs neighbour's apartment, a common liability issue in Lithuanian apartment blocks.
Travel insurance
Medical expenses, trip cancellation, baggage loss, and emergency repatriation for travel outside Lithuania.
Who needs it: Anyone travelling outside Lithuania — the EHIC covers EU travel for emergency care but travel insurance is strongly recommended for non-EU travel or to cover trip cancellation, baggage, and full private medical costs.
Annual cost: €30–120/year (annual multi-trip policy); €10–30 per trip for single-trip policies
Annual multi-trip policies are cost-effective for frequent travellers. Check whether your credit card includes travel insurance. Revolut Premium/Metal includes travel insurance.
Life insurance
Term or whole-of-life insurance paying a lump sum to beneficiaries on death, and often including critical illness or disability cover.
Who needs it: Those with dependants, mortgage holders, primary earners in a household
Annual cost: €200–1,000+/year (depending on sum insured and type)
Life insurance premiums are deductible from GPM (income tax) up to the lesser of €2,000/year or 25% of taxable income — a significant tax benefit. Combined life + pension savings products (investicinis gyvybės draudimas) are very popular in Lithuania for tax-efficient long-term savings.
Third pillar pension (investment life insurance)
Tax-advantaged long-term savings and life insurance product combining investment with death/disability cover.
Who needs it: Anyone wanting to supplement state and 2nd-pillar pension with additional voluntary savings
Annual cost: You choose the contribution amount — minimum typically €50–100/month
Contributions to investicinis gyvybės draudimas (investment life insurance) are GPM-deductible up to €2,000/year. This makes it very tax-efficient for higher earners. Returns depend on investment performance. Compare charges carefully — some products have high annual management fees.
Comparison sites
TPVCA (third-party vehicle insurance) is mandatory and easily obtained online — compare prices at Manramu (manramu.lt) or direct from Lietuvos draudimas (ld.lt) before purchasing.
Life insurance and investicinis gyvybės draudimas (investment life insurance) contributions are GPM-deductible — always consider this when calculating real cost.
Employer health insurance is a significant workplace benefit in Lithuania's IT and finance sector — check your employment package before buying separately.
Building insurance (for apartment in owner-occupied building) is often managed through the building management company (namų valdytojas) as a collective policy.
Home contents insurance premiums in Lithuania are very affordable — few excuses not to have it.
Insurance
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