Insurance: Which ones do you need and which ones you don’t? | – Guide

Status: 11/23/2022 17:55

You can insure yourself against many things in everyday life. Everyone should definitely have some policies, like liability and housewares. Others, on the other hand, are expendable and just needlessly cost money.

Many people in Germany have too many insurance policies, according to the Lower Saxony consumer advice center. Therefore, it is worth taking a close look when taking out insurance. Existing contracts should also be reviewed if there are major changes in living conditions or if insurers offer better rates. Saving money is a welcome side effect.

What insurances are essential?

It is required by law to have a health insurance to have. There are a greater number of mandatory health insurance companies. “When making a selection, it may be worthwhile to compare the service, additional benefits, bonus programs and rates between health insurance companies,” advises Rotraud Mahlo, health expert at the Lower Saxony Consumer Center. Sometimes it makes sense to change health insurance. Private health insurance is for many people, with the exception of civil servants, uninteresting, adds his colleague Maximilian Gehr, a financial expert at the Lower Saxony consumer advice center. Because: As a rule, these guarantees become more and more expensive over the years, which means a high burden in old age.

A International health insurance It is not absolutely necessary, but it can be very useful when traveling on vacation. In this way, costs that are not covered by compulsory health insurance can be covered. It only costs a few euros a year. So: if you travel a lot, you should have one. Whether additional travel insurance makes sense must be assessed on a case-by-case basis.

Essential is also the private liability insurance. Insures personal injury, property damage, and financial loss in the private sector. “This doesn’t just apply to small scratches on the car’s paintwork that someone accidentally caused with their bike. Anyone who causes an accident is also covered,” explains Mahlo. Whoever causes damage to others through carelessness or carelessness must pay the full amount. That can sometimes be very expensive. “In the worst case, I have to pay for the rest of my life,” warns the expert.

Also yours Home furniture It makes sense to insure it, since many private households cannot afford the necessary new purchases, for example, after a fire or major water damage. If all the household contents have to be bought overnight, large sums of money can add up quickly. If you have particularly valuable items in your apartment or house, you should inform the insurance company separately, even if the protection costs are somewhat higher.

Owners absolutely need one homeowners insurance. Covers damage caused by fire, water, storm, and hail. Depending on the location of the property, it must have additional protection against flooding or landslides, the so-called natural hazard insurance, to think.

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What types of insurance are recommended or make sense in individual cases?

A disability insurance It is very useful according to the Consumer Advice Center. This protects you, for example, in the event of a serious illness. Those who buy insurance at an early age can get low premiums.

A Accident insurance it is usually superfluous for adults because it is already included in the disability insurance. Anyone who engages in dangerous hobbies in their spare time (eg skydiving, motorcycling, rock climbing) should consider this policy.

A term life insurance It is highly recommended to ensure family safety, especially if you have small children. As long as the corresponding risk is high, it is good to be able to fall back on such protection, according to Gehr. If the children are older at some point, this protection may not be as important anymore and could be bypassed.

endowment life insurance It used to be a highly sought after investment model. Due to low interest rates, they gradually became unattractive and the amounts paid were not particularly high. But if you still have a prior contract, you should keep it, because good returns are often associated, Gehr says. When converting the sum of life insurance into pension insurance, one must calculate whether it is really worth it.

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Supplementary private old-age and long-term care insurance it can be quite useful. However, according to Gehr, the focus should be on the age of the insured person, the duration of the insurance and the very specific life situation. A general recommendation cannot be given.

legal defense insurance they have advantages and disadvantages. Many costly disputes are often excluded. In addition, the insurer can terminate the contract after a loss. If a legal dispute goes through several instances, legal protection insurance is useful. But: judicial protection cannot be concluded again in an ongoing process. As an alternative to legal protection insurance, financial expert Gehr recommends accumulating reserves and using them if necessary. Another option is to hire a “minimum package”, for example for traffic law if you drive a lot. Sometimes it makes sense to buy renter’s insurance.

supplemental dental insurance they are not necessary according to the Lower Saxony consumer advice center. In individual cases, however, such a safeguard may make sense for economic reasons. Dentist costs are sometimes quite high.

pet health insurance they often offer little service with expensive premiums. However, one is recommended dog owner’s responsibility.

What insurance is quite unnecessary?

Experts even advise against some insurance companies. This is how the consumer center maintains funeral insurance for most superfluous, especially with older clients. They are expensive and often have a payment amount that is well below the contributions spent.

training insurance, such as those given by grandparents to their parents, should be considered on a case-by-case basis. Insurance is often not the right remedy, after all, nothing is insured, only savings are made, according to consumer advocate Gehr. This could also be done with the help of purely financial products,

According to the consumer center, policies that only cover minor damage, such as one, can generally be dispensed with. baggage insurance. broken glass– Y private unemployment insurance they are also expendable according to consumer advocates.

Also additional equipment insurance For bicycles, mobile phones, laptops or glasses, they are therefore only worthwhile for extremely expensive purchases or if particularly extensive insurance coverage is desired. Otherwise, it’s a “big flop,” Gehr says.

Consumption center advice

Consumer advice centers in Germany recommend regularly reviewing the insurance coverage and adapting it to changing life situations so that the risks that threaten the existence of the company are covered. They also offer special consultation appointments for consumers. They should have an overview of the insurance they have taken out ready.

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Guide | 09/21/2022 | 19:05

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