These 5 insurance policies are the most important in Germany. According to the Consumer Advice Center, each German pays about 2,000 euros a year in insurance premiums. In fact, it's possible to limit oneself to the most important policies and save money.
1. Personal Liability Insurance
In everyday life, events can happen faster than anticipated. You might get distracted for a moment and accidentally knock a phone out of someone's hand, or open a car door and damage a parked bicycle.
In such cases, the person who caused the damage should be responsible. To avoid unnecessary expenses, personal liability insurance is necessary. When taking out insurance, it is important to pay attention to a high coverage amount. The Association of Insured Persons recommends a sum of at least 15 million euros.
2. Household Contents Insurance
It is equally important to insure your household contents, which, for example, will cover expenses for expensive electrical appliances or furniture in case of fire or burglary with theft. For comprehensive protection, experts also recommend insuring against gross negligence.
To ensure adequate insurance coverage, you can include a so-called "waiver of underinsurance" clause in the contract. This guarantees the policyholder full compensation for the damage, even if the insurance sum is lower.
3. Occupational Disability Insurance
This policy can also be useful for working people. In the event of occupational disability, state protection is very limited. Disability can affect not only people engaged in manual labor but also various diseases can make it impossible to continue working.
Therefore, experts strongly recommend this type of insurance to everyone who relies on their own salary for their livelihood.
The following empirical rule applies: the earlier you take out occupational disability insurance, the cheaper it is.
4. International Medical Insurance
Anyone who travels a lot should consider international medical insurance. This is because many people do not know that even in Europe, the medical insurance company often only pays for standard treatment in the host country, which is usually much more modest than in Germany.
All additional treatment expenses must be borne by the insured person themselves. In some cases, this can be quite costly, especially if the patient due to illness needs to be transported back to Germany.
5. Motor Vehicle Liability Insurance
Anyone who owns a car or plans to buy one must have motor vehicle liability insurance. This is because it's easy to cause significant damage with a car.
For this reason, motor vehicle liability insurance is considered mandatory.
All these 5 insurance policies in Germany are recommended for every citizen of the country.
