Insurance

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

Article	What You'll Learn
Privathaftpflicht	How it works, what to look for
Berufsunfähigkeit	Income protection if unable to work
Krankenversicherung	Comparing GKV and PKV
Other insurance	Overview of additional insurance types

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

1. Check if you have Privathaftpflicht — one of the most affordable insurances
2. Explore BU options — premiums depend on age and health
3. Review current policies — some coverage may overlap