Insurance savings: what do you need and what is a scam

In this article you will learn:

  • Disability insurance is an absolute necessity.
  • How to save on your car insurance.
  • Which insurance companies are scams.

have something taxes and insurance together? At school you learn (almost) nothing about themas an adult you’re in a bind if you don’t have clear eyesight, and you pay every month hundreds of euroswithout knowing exactly why. Not anymore! Julia Rieder knows which insurance policies she really needs, which ones she can cancel if she’s low on cash, and which ones she should cancel because they’re redundant. The journalist is a deputy editor and insurance and wellness expert at “Finanztip”, a financial portal backed by a non-profit foundation and, therefore, independent.

you need this insurance

In Germany, everyone must have a private or statutory right health insurance to have. “One is not obligatory, but essential liability insurance‘” explains Rieder. This kicks in if someone is injured through your fault. In the event of an accident for which you are responsible and someone is injured, costs can quickly run into the five-figure range: if you don’t have insurance for this, you will get one quickly. existential financial distress

during the study or train you are often insured through his family – even if it’s been a long time since you grew up and moved away. If this is your case, it is established in your parents’ contract. But at the latest when you start your professional life, you must take out this insurance.

“Everything else depends on them life conditions far. For example, if you have a car, you need one Motor Vehicle Liability Insuranceone travels abroad, is one travel medical insurance important”, explains the expert. You can get them for as little as 10 euros a year.

Unattractive, but essential: disability insurance

Significantly more expensive, but even more important, it’s one disability insurance. If you can no longer work due to an accident or serious illness, this insurance intervenes. “At the latest when you start your career, you should think about disability insurance,” says the expert. This does not only apply to people with physically demanding or dangerous jobs, even if they have to pay a higher contribution than people with office work.

This chart shows the most common causes of disability:

“Even if this insurance is unfortunately not that cheap, it’s a good thing for all workers.”

Julia Rodriguez

financial journalist

How much insurance costs also depends on yours years and you Health far. “The younger and healthier you are when you take out insurance, the lower your monthly premium will be,” she explains. By taking care of it from the start, you’ll save tens of thousands of dollars over the decades until you retire.

Can you pause the insurance?

If you are very financially tight, it is possible with some insurers to pause payments by agreement. This is the case, for example, of life or disability insurance.

“If you don’t pay any contributions, your insurance coverage is significantly reduced.”

Julia Rodriguez

financial journalist

If something happened during this exact period, you would only get a fraction of what you were actually due; especially since payments are usually only postponed. “Missing contributions usually have to be paid later, so a break only makes sense if the financial problems are short-term,” explains Rieder.

So better leave it? “You have to think carefully about the termination, especially in the case of contracts that require a medical control before the conclusion,” says the insurance expert. Because if you want to take out a new policy after a few years, you are older and you may have previous illnesses that have a negative effect, that is, you pay much more.

“You have to think twice about canceling, unless you realize it’s an insurance policy you shouldn’t have, but you don’t absolutely have to.”

Julia Rodriguez

financial journalist

You can cancel this insurance if necessary

If money is really very tight, you should inquire about insurance to individual valuables either additional services Think about it and leave the major insurance carriers like liability and disability intact.

For example, if you drive a car that has just passed the TÜV inspection, you don’t need a full license and maybe not even one at all. Partial all risk insurance.

Also additional insurance for alternative healing methods, hospital subsidy either chief medical treatment you can cancel when things get tough.

Four tips to save money

The independent insurance expert reveals how else you can save money in these tips:

  1. Check your insurance regularly and compare offers from insurers – is there more for the same money elsewhere?
  2. “Before you buy insurance, you should ask yourself: do I really have to insure it?” Smartphone or glasses insurance you can, for example do without with confidence. For such things, a savings nest in a money market account is best.
  3. Convenient but unnecessary: ​​Also for combined insurance, in which different insurances are combined, the expert would prefer to advise against them. It is better to look specifically at what you need.
  4. Taking over the class without claims of elderly relatives: “If, for example, the grandmother wants to deregister her vehicle, she can take over her categories without claims with some insurers”, explains Rieder. This makes insurance significantly cheaper.

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