Many students and expats don’t know about Liability Insurance and its benefits and if its essential or compulsory or not in Germany. Third-party liability insurance is comparatively cheap, despite it being the second most important in Germany after health insurance.

What is Liability Insurance (Haftpflichtversicherung)?

Liability insurance covers costs related to unexpected damages to a person or an object belonging to that person. But it doesn’t cover personal damages. As we know that we cannot control accidents and damages occurring due to those accidents. And once this is happened there is no undo option for such mistakes and we have to pay for that damage from our pocket. but if we have Liability insurance then cost of such damages is paid by Insurance company and you save your money.

Lets explain with an example: If a student is riding bike and accidently hits a person and that persons iPhone gets damaged. Then that student is responsible for paying for that person for repair of iPhone or buying a new iPhone if its unrepairable. In short that student has to pay 300-1500 Euro for damage he has done accidently. But if that student has Liability insurance then that cost is covered by Insurance company and that student don’t have to pay anything from his pocket.

Is Liability insurance mandatory?

By German law its not Mandatory to buy Liability insurance. But its always good to have someone backing you for accidental mistakes you do in your life.

What does it costs and is there any coverage limit?

The cost of purchasing Liability insurance in Germany depends on several elements such as type of liability insurance and the extent of coverage you want. Also cost changes depending upon Insurance company from whom you are buying Liability insurance. On an average Liability insurance starts from 2 Euro/month only. Yes, there is coverage limitations which changes from plan you selected. Its difficult to explain every plan from different Insurance company so always check there website for more details.

Which companies offers Liability insurances?

There are lots of companies who offer Liability insurance, below are few well known and best companies.

What are different types of Liability insurances?

• Getsafe – 4 Euro/Month onwards
• Adam Riese – 2 Euro/Month onwards
• Helden.de – 6 Euro/Month onwards
• Arag – 2 Euro/Month onwards
• Allianz Direct – 4 Euro/Month onwards
• Lemonade – 2 Euro/Month onwards
• Huk-coburg – 2.5 Euro/Month onwards
• Feather – 5 Euro/Month onwards

There are different types of Liability insurances, few are listed below

• Personal Liability insurances
• Dog Liability insurances
• Drone Liability insurances
• Sports Liability insurances
• Equine Liability insurances (Horse)

What is covered and what is Not covered in Liability insurances?

Following things are usually covered but it may vary depending on your Insurance plan.

• Damaged done to rented apartment
• Accidental damaged of any electronics like camera, mobile, etc
• Accidental property damage
• Lost apartment key

Following things are not covered but it may vary depending on your Insurance plan.

• Broken glass of apartment
• Damaged to your own belongings
• Charges of locksmith if you want to break into your apartment in case of losing key
• Any kind of Fines and penalties are also not included

How to claim Liability insurances?

You simply need to submit all appropriate documents or images (photos, police reports, hospital bills, invoices, etc.) to your Liability insurance account. After that, they will process your claim. Once documents are verified your claim gets approved.

Third-party Private Liability Insurance in Germany (Haftpflichtversicherung)

As the name suggests, the third-party private liability insurance is a type of insurance in Germany, which covers you and, in some cases, your family members if any of you are liable of causing damage, unintentional or not, to others.

For example, you might hurt a colleague of yours while practicing your favorite sport and your insurance provider will cover all medical costs. Or you accidentally run into a biker while crossing the road where you are not allowed to, and the biker gets hurt in the process. In this case as well, your insurance provider will take care of the treatment costs of the damaged person.

Current legal basis in Germany does not specify at what upper limit your liability insurance package will cover in case you get hurt during an unwanted situation. The coverage you’re willing to get will largely determine the cost of your third-party private liability insurance. Having in mind that you can never know what can happen and in order to be prepared for everything, it is highly recommended that you give priority to taking the best deal instead of aiming for the cheapest one. An additional factor that is covered by liability insurance and that is not to be underestimated is the defense against unjustified claims of third parties. This means that in case another person files a claim against you, even though you didn’t do anything wrong, the insurance company will take over all costs related to your defense.

Third-party private liability insurance is not mandatory by law in Germany. But there are some circumstances at which you might be obligated to purchase it. For example, if you decide to rent a property it is likely that your renting contract will require you to have this type of insurance, so any possible damage is covered by your insurance provider.

On the other end, liability insurance for your vehicle in Germany is quite expensive. If you aim to get full coverage (Vollkasko) for your car, your annual premium will start from €500 and can be as high as €900.

Frequently Asked Questions

To what degree will my third-party liability insurance cover me in case I accidentally cause damage to others?

The actual law in Germany does not specify an upper level of damage to which your liability insurance will cover the other person to which you have accidentally caused damage. Deciding to get a cheap insurance package might easily turn into a bad idea, so our recommendation is for you to pick a liability insurance offer which would cover damages to a high cost as possible.

Can I switch insurance provider whenever I want?

Unfortunately, no. Even if a better option comes along you will still have to wait until the term to which you agreed with your current provider is over. That’s why most insurance agents will do their best to convince you to lock you down in a long-term insurance package.

Do insurance companies provide customer support in English?

In the majority of insurance companies in Germany, customer services are only available in the German language. However, there may be some of them which do offer customer support in English.