How Much Liability Insurance Cost in Germany: Overview

Jun 8, 2021Insurances, Living in Germany

Liability insurance is the second popular insurance in Germany after health coverage. Despite its low cost, the policy will protect you against many unfortunate events and accidents. Although personal liability insurance isn’t mandatory in Germany, we definitely recommend getting one!

The liability insurance in Germany is comparatively cheap, you will be spending on average between 2 EUR to 5 EUR per month, however, payment usually happens annually. Taking out the cheapest possible rate isn’t recommended since it will involve some form of self-contribution or low coverage. 

In this article, we give a complete overview for the price of liability insurance in Germany. Moreover, you will learn which coverage to expect and all elements which influence its price.

Cost of the Liability Insurance in Germany

In comparison to health insurance, liability insurance won’t make up any significant change to your budget in Germany, Nonetheless, it is very useful insurance to have and 100% recommended to everyone.

The liability insurance isn’t expensive, you will be spending on average between 2 EUR to 5 EUR per month, however, payment usually happens annually. I don’t advise taking out the cheapest possible rate since it will involve some form of self-contribution or low coverage. 

Overall, the cost of liability insurance in Germany depends on several elements:

  • The coverage
  • Amount of self contribution
  • Additional services one might want to be included, e.g lost keys

The price also will vary if you are single or married, hence families will pay more for liability insurance. Singles can get a good liability tariff for up to 50 EUR per year. However, a couple with two children will pay around 70 EUR for the same package.

The liability insurance in Germany can have a coverage of 10 million EUR and up to 100 million EUR. All insurances will take care of damages made to other people, to their property and belongings, as well as caused financial loss.

Prices of most popular insurance providers in Germany

Feather

Liability insurance from Feather costs only 4,99 EUR per month. It will cover all damages you make to other people and their properties/belongings.

Feather is an English-speaking company, that will assist you with any question and concern. Their policy covers up to 30 million EUR in damage costs.

CosmosDirekt

Liability coverage from CosmosDirekt – the most popular insurance company in Germany will cost you just 18 EUR per year, which comes to the 1,5 EUR per month for Basic insurance, and 34 EUR yearly or 2,8 EUR per month for Comfort.

CosmosDirekt protects you from damages to other people, third-party property damage, and financial loss in a total of 5 million EUR.  Moreover, they cover damages made via the internet, such as cyberattacks or data exchange, for up to 500,000 EUR.

Keep in mind that in Germany, you need liability insurance when you rent a room apartment or house. It will cover you in case something bad happens. For example, an apartment or furniture gets damaged or something gets broken.

With private liability insurance, you can claim reimbursement of costs if the damages were caused by you. One of the most reliable and affordable coverages is offered by CosmosDirekt.

AXA

AXA offers liability insurance as little as 20 EUR per year or 1,6 EUR per month. The liability coverage from AXA is divided into S, M, and L packages with accordingly compensation costs and coverage options. Therefore, 20 EUR is the price of the S tariff.

HanseMerkur

HanseMerkur is one of the biggest insurance companies in Germany, that provides basic liability insurance for as little as 3,55 EUR per month.

This insurance covers property damage made to other people, personal injuries you made to others, and financial damage up to 50 million EUR in total. Moreover, it is also valid abroad while you are traveling. 

Die Bayerische

Die Bayerische is middle sizes insurance provider in Germany, with the impressive offer of different coverages. Liability insurance from Die Bayerische will cost you between 3,50 EUR and 6,80 EUR per month depending on the package you choose.

Also read: Best liability insurance for students

What Is Liability Insurance and Why You Need It?

Private liability insurance is the second most important insurance in Germany (after health insurance). It covers all damages you might ever make to other people and their properties. This includes something common like breaking the piece of furniture in the rented apartment.

Property damages are very common, but so also loss of assets or injury made to some friend. For example, if one or even several people are harmed by your action, the damage claim can be millions EUR. 

Accordingly, to German civil law, everyone is liable for damages they cause. As a result, you will be financially responsible if something bad happens.

Moreover, a private person is liable will all their private assets including even salary and house. If a guilty party doesn’t possess enough it will be passed to parents.

The amount and duration of payments aren’t limited, therefore, someone might end up paying such debt for a lifetime. 

Therefore, private liability insurance is one of the most important insurances. It saves you from financial ruin in the worst case and also takes away a lot of stress.

For all these reasons, YOU NEED A PERSONAL LIABILITY INSURANCE IN GERMANY. In fact, I signed for one, as soon as I moved there. Moreover, if you are renting a place in Germany, some landlords will require you to have liability protection.

Some typical examples when good liability insurance can save you:

  1. Accidentally spilled a cup of coffee over your fellow student’s new laptop. The insurance company will compensate for all costs beforehand. 
  2. Accidentally run into a cyclist while crossing the road and the biker gets injured in the process. The insurance provider will take care of the treatment costs of the cyclist.

What is covered?

Another question that comes to your mind is what actually covered by this amazing insurance? Liability insurance is third-party insurance, meaning it covers your liability to others when you cause damage to people or objects.

  • Personal injury/damages to persons
  • Property damages/damages to objects

All harm to properties caused by the insurance holder, including issues with rented rooms, apartments, houses, and its amenities. Some insurances even include short-term rental properties like hotels, Airbnb, hostels, etc. 

  • Financial damages/damages to wealth

If some of your actions will result in financial loss to others, it will be covered by liability insurance. For example, a bicycle accident that you caused. As a result, the cyclist has injured himself and can’t work the following days.

The liability insurance compensates the amount of the salary he loses when not working. 

Exceptions

Some insurances might or might not cover damage to rental property, damage due to data exchange and internet use, loss of keys, or your stay abroad. Hence, make sure you carefully read all services and terms of the policy before signing up. 

What is not covered by the liability insurance?

Following damages aren’t be covered by liability insurance:

  • Physical or material damages the insurance holder is suffering
  • Damage to rented, leased, borrowed items
  • Damages related to your job, workplace, volunteer work, or company
  • Damage caused intentionally
  • Damage caused while helping a friend
  • Damage that you suffer
  • Damage caused by the use of power, air, or water vehicle
  • Your fines and penalties
  • The cost of restoring or replacing damaged items
  • Compensation for pain or in case of permanent damage – lifetime pension
  • Defend against unjustified claims

If you want to protect yourself against sudden accidents, sign for accident insurance.

Moreover, in order to protect all your assets, you should sign for legal insurance. It will secure you against all claims including claims at the workplace, personal life, or at home. Which costs legal insurance will cover?

  • Costs for court, lawyers, assessors and mediation

An example when you need legal insurance: sue your employer when he failed to follow terms in your contract. The best legal coverage can be found at Feather, they provide exclusive English-speaking support.

Best Liability Insurance in Germany

Below you can see main liability insurance providers with affordable prices.

Feather

Liability insurance from Feather costs only 4,99 EUR per month. It will cover all damages you make to other people and their properties/belongings.

Feather is English speaking company, that will assist you with any question and concern. Their policy covers up to 30 million EUR in damage costs. Feather will take care of all property damages, personal injures, and asset losses. Additionally, this liability insurance will reimburse your lost keys (including your work’s keys).

CosmosDirekt

Already for 18 EUR per year for Basic insurance and 34 EUR for Comfort, CosmosDirekt protects you from costs for personal injury, property damage, and financial loss in a total of 5 million EUR. 

Even the internet isn’t a safe place anymore, therefore they contribute 500,000 EUR for damage from data exchange and internet use. 

AXA

AXA offers liability insurance as little as 20 EUR per year. On their website, you can report the damage immediately so they can support you on time.

Overall AXA offers good insurance solutions for any occasion in Germany. For a small price, you will get solid coverage, great customer support, and a very user-friendly website.

The liability insurance by AXA is divided into S, M, and L packages with accordingly compensation costs and coverage options.

HanseMerkur

With 140 years of experience, HanseMerkur is one of the biggest insurance companies in Germany, they provide almost all possible packages from liability, legal to travel insurance. 

This liability insurance covers property damage made to other people, personal injuries you made to others, and financial damage up to 50 million EUR in total. Moreover, it is also valid abroad while you are traveling. 

Costs start at 3,55 EUR per month, depending on the coverage you choose. 

What insurance companies provide customer support in English?

Unfortunately, most of the insurance companies operate in the German language and don’t provide support in English. Only one firm can help you with the coverage – Feather, they are a digital insurance company, offering liability insurance as well as others including health insurance for students, expats, self-employed, legal insurance, etc.

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