Germany has a clear rule: if you cause damage to another person, you have to pay for that damage. This is called liability (Haftung). There is no upper limit, so a small mistake can become very expensive. For example, you are riding your bike and injure someone. You might then have to pay for their medical treatment, their lost earnings and compensation for pain and suffering, possibly for many years. Personal liability insurance (private Haftpflichtversicherung) pays for you in cases like this. It is voluntary in Germany. Even so, it is considered the most important voluntary insurance, and it usually doesn't cost much. Every adult living in Germany should check whether they have it. This also applies to students and to people who are only staying for a few years.
The insurance pays for injuries to people, for damage to property and for financial losses that result from them. It also checks whether a claim against you is justified. If the claim is not justified, the insurance defends you against it. Things that are not covered include damage to your own belongings, damage you cause on purpose and damage caused with a car. For your car, you need separate car insurance (Kfz-Versicherung).
What you need
- An address in Germany. Ideally, you have already registered your address.
- An ID card or passport.
- A current account (Girokonto) with an IBAN. Most insurers collect the premium by SEPA direct debit (SEPA-Lastschrift). This means the insurance company takes the money from your account automatically.
- An email address and a phone number.
- Names and dates of birth of your partner or children, if they should be covered too.
- Information about previous claims, if the insurer asks for it.
Step by step
- Check whether you are already covered. Your spouse or partner may already have a policy that you can be added to. Young people in their first training or education are sometimes covered by their parents' insurance if the parents live in Germany. Ask about it.
- Think about who should be covered. There are policies for one person and policies for couples or families. A family policy usually covers the children as well.
- Pay attention to the important points. The coverage amount (Deckungssumme) is the maximum the insurance pays per claim. It should be high. The deductible (Selbstbeteiligung) is the part of a claim that you pay yourself. Also check whether damage to your rented flat, damage to borrowed items and the loss of other people's keys are covered.
- Compare offers. You can compare offers online, ask insurers directly or go to an insurance broker (Versicherungsmakler). A broker compares offers from several insurers for you.
- Submit the application. This can usually be done online or on paper. Answer all questions honestly and completely. False information can mean the insurance won't pay later.
- Check your insurance certificate. The insurance certificate (Versicherungsschein), also called a policy (Police), is the document that confirms your contract. Check the names, address and the people covered. Keep the document in a safe place.
- Report a claim immediately. If something happens, inform the insurance company as quickly as possible. Take photos and write down names and contact details. Don't be quick to promise that you will pay for the damage yourself. The insurance will look into the case first.
Costs and deadlines
There is no fixed price. The premium depends, for example, on how many people are covered, how high the coverage amount is and whether you choose a deductible. With a deductible, the premium is often lower. You can usually pay the premium monthly or yearly.
After you sign up, you have a right of withdrawal (Widerrufsrecht). This means you can cancel the contract without giving a reason. The deadline for this is 14 days. It usually starts when you have received all the contract documents. How long the contract runs after that and how you can cancel (kündigen) it, meaning end it, is written in the contract. Read this part carefully.
Common problems for newcomers
You don't have any Schufa data yet
Schufa collects information on whether people pay their bills. You can read more about this on the page Understanding Schufa. For liability insurance, missing Schufa data is often not a big obstacle. If an insurer still turns you down, ask another insurer.
You don't have a registered address yet
The insurer needs an address where it can send letters. It's best to register your address at the citizens' office (Bürgeramt) first. If you move later, tell the insurance company your new address.
You don't speak much German yet
Some insurers offer advice or documents in other languages. Ask about it. However, the legally valid contract is often in German. Ask someone you trust to explain the important parts to you. The consumer advice centre (Verbraucherzentrale) in your federal state or a migration advice service (Migrationsberatung) can also help you.
You have insurance from your home country
Liability insurance from another country doesn't always apply in Germany, or not for a long stay. Ask your current insurer in writing whether you are covered in Germany.
You have a dog
Damage caused by dogs is usually not included in personal liability insurance. There is a separate dog liability insurance (Hundehaftpflichtversicherung) for this. In some federal states it is mandatory. Ask your city or municipality which rules apply to you.
Frequently asked questions
Is personal liability insurance mandatory?
No. It is voluntary. However, some landlords ask for it. What is mandatory is insurance for your car and, in some federal states, insurance for dogs.
Do I need it if I rent my home?
Yes, it makes sense for tenants too. Check whether damage to the rented flat is covered. Liability insurance does not protect your own furniture and belongings. For that, there is contents insurance (Hausratversicherung).
Are my children covered?
In a family policy, usually yes. By law, young children often do not have to be liable for damage themselves. In that case, the insurance only pays if the contract explicitly says so. Pay attention to this if you have young children.
Does the insurance also apply abroad?
Many policies also cover you when travelling abroad, but often only for a certain period of time. Check the exact rules in your contract.