What you really need, what you can skip — and why Germany is a country of over-insured people.
The Problem
Germany is "over-insured but under-protected." Many pay for phone insurance and burial insurance while missing truly important coverage.
Insurance Categories
Commonly Recommended
| Insurance | What It Covers | Cost/Year |
|---|
| Privathaftpflicht | Damages to third parties (up to millions €) | €40-80 |
| Berufsunfähigkeit (BU) | Income if you become unable to work | €500-1,500 |
Depends on Situation
| Insurance | Useful when... | Cost/Year |
|---|
| Hausratversicherung | Valuable belongings, burglary risk | €50-150 |
| Rechtsschutz | Potential legal disputes | €150-300 |
| Auslandskranken | Travel outside EU | €10-20 |
Debatable Value
| Insurance | Arguments Against | Alternative |
|---|
| Handyversicherung | High price, many exclusions | Save for replacement |
| Sterbegeld | Low returns | ETF savings plan |
| Glasbruch | Rare cases, low costs | Pay yourself |
| Reisegepäck | Often covered by Hausrat | Check your coverage |
Things to Consider
| Common Approach | Alternative Approach |
|---|
| Postpone BU until later | Earlier signup = lower premiums |
| Get each insurance separately | Bundle deals may be cheaper |
| Low coverage amounts | Haftpflicht: typically €10 million recommended |
| Insure small things | Higher deductible = lower premium |
Section Topics
Key Numbers
- 1 in 4 becomes disabled before retirement (German statistics)
- €10 million — typical recommendation for Haftpflicht coverage
- €40-80 — price range for Privathaftpflicht per year
- ~3% of net income — guideline for BU premiums
Where You Might Start
- Check if you have Privathaftpflicht — one of the most affordable insurances
- Explore BU options — premiums depend on age and health
- Review current policies — some coverage may overlap