Over 18 billion euros for unnecessary insurance: How to save!

Over 18 billion euros for unnecessary insurance: How to save!

More and more Germans are paying high premiums for insurance that they actually don't need. According to a current study by the Association of Insured Persons (BdV), Germans spend around 54 billion euros annually on private insurance, without taking health insurance and pension provision into account. What is shocking is that around a third of this sum, i.e. around 18 billion euros, is used for unnecessary policies. These figures illustrate how complex and confusing the insurance market is, which overwhelms and misleads many consumers.

To escape this dilemma, consumers can resort to the services of independent insurance brokers. These specialized professionals help you find the right insurance coverage and reduce costs. Bastian Kunkel, founder of the “Versicherungen mit Kopf” brand, runs a large platform for independent insurance advice in Germany. His company, VMK Versicherungsmakler GmbH, has already received over 1,200 5-star reviews on Google and offers Germany-wide online advice.

The functions of insurance brokers

Insurance brokers analyze individual needs and find suitable tariffs. They also check existing contracts, which are often automatically extended without any damage being reported. These brokers have the advantage of comparing a variety of tariffs and products and can independently represent the interests of their customers. They are usually compensated through commissions that are already included in the premiums, which makes the services free for the customer.

When choosing a broker, it is important to look for transparency and independence. Reviews on the Internet and personal recommendations can provide valuable assistance in making your choice. Customers also have the right to change their insurance broker at any time or terminate the broker mandate if they are dissatisfied with the services.

Advantages and disadvantages of brokerage

The service of an insurance broker does not only bring advantages. Impartial advice is not always guaranteed as brokers are paid by insurance companies. Nevertheless, they offer numerous advantages, such as support in finding the necessary insurance and free initial advice for their customers.

On the other hand, consumers should also be aware of the possible influence of insurance company commissions. Insurance brokers are not tied to a specific company and can offer different products, which makes their advisory approaches diverse. It is advisable for the customer to take an active role in the consultation, to ask questions and to keep a record of the topics discussed.

There are around 47,000 insurance brokers in Germany who help consumers to find their way better in the jungle of offers. It is also important not to neglect your own preparation for such consultations: clarifying your own needs and budget can be crucial to finding the right insurance.

Overall, it shows that professional support from independent insurance brokers can be of great benefit to many consumers. Through sound advice and a comprehensive comparison of offers, not only can unnecessary insurance be identified, but costs can also be effectively contained.

For more information and tips on choosing a suitable insurance broker, visit Focus and Insurance check.