What Is Private Liability Insurance & Why Do You Need It?
Imagine you just moved to Germany. You’re starting a new chapter of your life and you couldn’t be more excited. Then BOOM, you accidentally damage someone else’s property. Consequently, it’s going to cost you 1000’s of euros to fix and, in your current situation, this accident could financially ruin you. What do you do? First of all, if you have German private liability insurance, the damage would be covered by your insurance provider.
Liability insurance covers damage caused by you to a third party or his or her property. Above all, it protects you financially from accidents. Some situations where private liability insurance would be beneficial include:
- You’re out with a coworker having a drink. You reach across the table and accidentally spill your beer on your coworker’s phone. As a result, the phone breaks, and your coworker wants you to pay for a replacement. Private liability insurance would cover the cost of a replacement phone.
- You accidentally break a teammate’s ankle while playing football. Consequently, the break requires countless doctors visits, x-rays, and even surgery. Private liability insurance would cover the cost of your teammate’s treatment.
German private liability insurance generally includes:
- Personal and property damage
- Damages to borrowed and hired property (like your apartment)
- Protection against uninsured third parties
- Keys to a rental property
- For renters: Rented rooms (Rented property damage)
- Football, cycling, skiing and more sports
- Damages through internet use
What Isn’t Covered With German Private Liability Insurance?
German private liability insurance (in general) does not cover:
- Damages related to your job, workplace, or volunteer work
- Some high-risk hobbies or activities
- Damages by mentally unstable persons and young children (young children can be included)
- Legal fines or penalties
- Accidents when driving (Covered by auto insurance)
- Damages to your home covered by homeowners insurance (it is covered if you rent an apartment and damage property of the owner)
- Situations where family members accidentally injure each other or themselves
Costs Without German Private Liability Insurance
- You accidentally break the screen on your friends new laptop. A replacement screen will probably cost you over 300€. If the whole laptop needs to be replaced you could owe 1500€.
- While at someones house for dinner you trip and break their glass coffee table. It was from a custom furniture store and will cost you 500€ to replace.
- You’re walking down the street texting and accidentally run into a cyclist. The cyclist falls off his bike and breaks his wrist. Regular hospital fees could cost you over 2000€. If the cyclist suffers permanent damage you could be stuck paying for the rest of your life!
Which German Private Liability Insurance Is Right For You?
There are many options for insurance companies out there, here are our top 3 options, especially for non-German speakers:
- Monthly Cost for Coverage
- Custom Policies To Fit Your Needs
- No Fixed Duration, Cancel Anytime
- English Speaking Customer Support
- No General Excess
- Website In English
- English Contract Information
- "No Claim" Bonus
While it may not be right for everyone, we feel that COYA is the best option for English-speakers in Germany. Not only do they offer great prices and extensive coverage, but the convenience of an English website, English customer support and English contract takes immeasurable amounts of stress out of the insurance process.
Lastly, if you don’t already have German home contents insurance, you should look into getting it. Click here to read more information about German home contents insurance.
Who wrote this?
My name is Bastian and I am a certified, independent insurance broker in Germany. My wife is American and together we help English-speaking expats figure out insurance, banking, and other issues encountered when moving to/living in Germany.
I also own Germany’s biggest Youtube-Channel about insurance knowledge and was honored with the “Education Award of the German Insurance Industry” in 2018 and became “Young Broker of the Year” in 2017.