Which insurance do you really need, and which not?
In short
Which insurance do you really need in Germany, and which not? Compulsory are health insurance and, for a car, motor liability. Really needed is personal liability for about EUR 40 to 120 a year. If you live on your income, you need disability insurance; with a family or loan, term life cover. Phone, funeral and loan protection insurance are usually unnecessary.
Published premiums for the key policies and the usually unnecessary ones.
Example
Typical range
Personal liability, single, EUR 10 to 50 million cover
about EUR 40 to 120 a year
Personal liability, couple or family
about EUR 60 to 180 a year
Disability, age 30, office job, EUR 1,500 benefit
about EUR 70 a month
Term life, age 30, EUR 200,000, 25 years
about EUR 7.59 to 15.35 a month
Buildings, detached house with good cover
about EUR 400 to 600 a year
Phone insurance, basic tariff
from about EUR 2 to 3 a month
Funeral expense insurance, entry at 70, sum EUR 7,000 to 8,000
about EUR 54 to 63 a month
Figures from published tariff examples and German law, as of October 2026.
Your premium depends on age, location and cover; we obtain the exact quote.
Worked example
Family with two children, one earner, house with a mortgage
The cover this family really needs, without extras.
Personal liability, family
about EUR 60 to 180 a year
Disability for the earner, 12 × about EUR 70
about EUR 840 a year
Term life EUR 200,000 per parent, two policies
about EUR 182 to 368 a year
Buildings with good cover
about EUR 400 to 600 a year
Together about EUR 1,480 to 1,990 a year, about EUR 124 to 166 a month; health insurance comes on top.
The rule of thumb: what could really ruin you
You really need insurance when a loss would ruin you financially: injuring someone who then needs a lifelong pension, losing your income, or a house burning down. Small losses such as a broken phone are better paid yourself; over time insurance for them costs more than the damage.
So check the big risks first and the small ones later. Anyone who insures a phone and luggage but has no disability insurance, although they really live on their salary, has the priorities wrong.
Which insurance you really need
Only two are compulsory: health insurance for everyone resident in Germany (Section 193(3) VVG, Section 5 SGB V) and motor liability for every registered vehicle (Section 1 PflVG). Personal liability insurance (Privathaftpflicht) is voluntary but really needed by everyone, because anyone who harms another person is liable without limit with their assets.
If you live on your earnings, you really need disability insurance. If you support a partner or children or have a loan, you need term life insurance. Homeowners need buildings insurance, ideally with natural hazard cover.
Insurance
Really needed by
Guide price
Health insurance
everyone, compulsory
statutory by income
Motor liability
vehicle owners, compulsory
depends on vehicle and region
Personal liability
everyone
about EUR 40 to 120 a year
Disability
anyone living on earnings
age 30, office: about EUR 70 a month
Term life
family or loan
age 30, EUR 200,000: about EUR 8 to 15 a month
Buildings
homeowners
about EUR 400 to 600 a year
Sensible, but not for everyone
Contents insurance is needed by anyone who could not replace furniture, electronics and clothes from savings; for 75 square metres it costs about EUR 90 to 120 a year. Private care insurance makes sense if assets should be protected. Travel health insurance costs little and is really important for trips abroad.
Legal expenses insurance pays off for some people, for example in disputes with an employer or landlord. Accident insurance does not replace disability insurance, because it pays only after accidents and not for illness.
Which not: policies that are usually unnecessary
Phone insurance costs from about EUR 2 to 3 a month, much more with theft cover and an expensive device; over the term you often pay more than a repair. Funeral expense insurance is worthwhile for only a few people, according to Stiftung Warentest, because those who live long pay in more than is paid out.
Loan protection insurance (Restschuldversicherung) sold with consumer loans is expensive and pays little, according to the consumer advice centres; term life is usually cheaper. Endowment and education policies mix saving and cover and are really needed by very few households.
When a few policies are enough
If you live alone in a rented flat, have no car and are statutorily insured, personal liability, disability insurance and perhaps contents cover are enough. You really do not need more in that situation. Every further policy should cover a risk you cannot carry yourself.
Norman Nammert works as an insurance broker (Versicherungsmakler) and checks with you which insurance you really need and which not. The insurer pays the commission, so the review is free for you.
Step by step
List all policies with premiums.
Tick off compulsory cover: health and motor liability.
Check that personal liability and disability cover are in place.
Add term life if you have a family or loan.
Review small policies such as phone or funeral cover critically and cancel if needed.
Checklist
Health insurance in place
Personal liability with at least EUR 10 million
Disability cover if you live on your income
Term life with family or loan
Buildings with natural hazards for homeowners
No policies for losses you could pay yourself
Common mistakes
Insuring small risks and forgetting big ones like disability
Treating accident insurance as a substitute for disability cover
Signing loan protection insurance without checking it
Never reviewing policies although life has changed
Questions and answers
Frequently asked
Which insurance is compulsory in Germany?
Health insurance for everyone resident in Germany and motor liability for every registered vehicle.
Which insurance do you really need first?
Personal liability.
It costs little and protects against unlimited liability.
Is contents insurance really necessary?
Only if you could not easily replace your belongings yourself.
Many find it useful, but it is not compulsory.
Which insurance is unnecessary?
Usually phone, funeral expense and loan protection insurance,
and endowment policies without a clear purpose.
Do you need accident insurance?
If you already have disability insurance, rarely.
For children and people without disability cover it can make sense.
