Insurance requirements in Germany: What do citizens pay on average and which insurance policies are really essential?

Insurance requirements in Germany: What do citizens pay on average and which insurance policies are really essential?

According to a report by www.rnd.de, people in Germany pay an average of 2,600 euros annually for their insurance. It becomes clear that the priorities when protecting personal risks are often set incorrectly. This article takes a closer look at some types of insurance and analyzes possible impacts on the market, the consumer and the industry.

Essential: personal liability insurance

Personal liability insurance is considered essential because it covers damage that someone causes to others. Finanztip recommends a coverage amount of 50 million and an assurance that in an emergency, injured parties will also receive at least 10 million euros. A possible impact of this recommendation is an increased demand for private liability insurance with higher coverage.

Insurance for residential buildings and household contents

Building insurance and household contents insurance are important, especially for homeowners. The market for household contents insurance could be influenced by an increasing demand for tariffs with lower annual premiums, while building insurance could increasingly also cover natural hazards.

Occupational disability insurance

Occupational disability insurance is considered one of the most important insurance policies in the private sector as it provides financial support if a person can no longer work due to illness or accident. This could lead to increased demand for this type of insurance and an adjustment in tariffs.

Term life insurance

Term life insurance is particularly recommended if a family depends on an individual's income or if the house has not yet been paid off. One possible impact could be increased demand for tariffs with lower annual contributions.

Unnecessary insurance

Special additional insurance for luggage, glasses or cell phones is not considered useful. This could lead to consumers increasingly relying on building up an emergency fund and foregoing such insurance.

Regular review of insurance contracts is also recommended in order to adjust insurance coverage and find cheaper rates. Overall, it is important to make a careful and individual decision when selecting insurance in order to optimally cover your personal needs.