Newcomers to Germany are offered insurance at every turn: by the phone shop, the bank, the car dealer and the travel agent. Some of it is useful, much of it is not. Here is what we advise against, why, and what to do instead, even though a broker earns from every contract.
Our verdict
Almost always too expensive for what it pays.
Over two years premiums often reach half the phone's price. Theft is usually covered only after burglary or robbery, and an excess is deducted.
Instead
Set aside money for a replacement and use a sturdy case. Burglary at home is covered by contents insurance anyway.
Our verdict
Usually unnecessary.
Most faults appear in the first two years, when the seller's statutory liability for defects applies in Germany and the EU. After that, the premium is high compared with the device's remaining value.
Instead
Use your statutory rights against the seller and add surge cover to your contents policy. Contents insurance
Our verdict
Hardly ever pays off.
Premiums come close to the price of new glasses and benefits are capped. Many opticians include breakage cover for the first years.
Instead
Keep a spare pair. If eyewear costs are high, check a supplementary health plan that includes glasses. Supplementary health
Our verdict
Only for large or expensive glass.
A broken window is rare and usually cheap to fix. Over the years the premium exceeds the likely loss.
Instead
Consider it only with a conservatory, large glass fronts or an expensive ceramic hob.
Our verdict
Expensive, full of exclusions and often duplicated.
Valuables and electronics are restricted, unattended luggage is excluded. Burglary and robbery on trips are already covered by contents insurance up to a limit.
Instead
Check the away-from-home cover in your contents policy and carry valuables in hand luggage. Contents insurance
Our verdict
Often the costliest way to protect a loan.
It is sold together with the loan and the premium is often financed with it, which makes the loan much more expensive. Exclusions for existing conditions and early unemployment are common. German consumer centres have criticised it for years.
Instead
For larger loans, take out term life and disability cover separately. Term life insurance
Our verdict
Unnecessary.
If a stolen card is misused, your liability is limited by law to 50 euros unless you were grossly negligent, and nothing after you block it. The German blocking number 116 116 is free.
Instead
Block cards immediately and never keep the PIN with the card.
Our verdict
Outdated.
Passengers are compensated through the car's motor liability, even when the driver caused the accident. For the driver, passenger accident cover pays only small fixed sums.
Instead
Add driver protection (Fahrerschutz) to the motor policy and take out personal accident cover. Accident insurance
Our verdict
Rarely useful.
Statutory insurance pays the hospital, the employer continues salary for six weeks and the health fund then pays sick pay. Your co-payment is capped at 28 days a year. A daily amount for hospital stays fills no real gap.
Instead
If you want more comfort in hospital, take a supplementary plan for a private room and senior physician. Supplementary health
Our verdict
Makes little sense without dependants.
Over decades you often pay in more than is paid out. A funeral can be paid from savings or term life.
Instead
Build savings, or take term life if someone depends on you. From around 60 it can be worth a look. Term life insurance
Our verdict
Too expensive and too rigid.
They mix saving and life cover, both at higher cost. Returns after costs are usually low, and expats who leave and cancel early lose money.
Instead
A separate savings plan and term life for the main earner. Term life insurance
Our verdict
One is enough.
Breakdown help, towing and repatriation come with automobile club membership such as ADAC and with the add-on cover of motor insurers. Having both means paying twice.
Instead
Keep whichever is cheaper and covers more, especially abroad. Car insurance
Our verdict
Risky in Germany.
Health insurance is compulsory for residents, and many travel or expat plans do not meet the German requirements because of limits, exclusions or fixed terms. Authorities and later insurers may then treat you as uninsured, with back payments.
Instead
Join statutory insurance or take a German-compliant private plan, then add international cover only as a supplement. Private health insurance
Questions and answers
Because long-term clients stay only if they trust us, and a policy that never pays costs that trust. The money you save is usually better spent on liability or income protection.
The consumer centres (Verbraucherzentralen) regularly name phone and glasses insurance, payment protection, luggage cover, extended warranties and hospital daily cash for employees. Our view is largely the same, with exceptions depending on your situation.
Usually at the end of the policy year with three months' notice. Contracts longer than three years can be cancelled after the third year. We check the earliest date for you.
No. The calculation is the same: high premiums over the term, an excess and exclusions. That the contract finances the phone changes nothing.
Only if it is valid in Germany and not duplicated. Home country contents or liability policies usually stop working once you live here, and you may be paying for nothing.
Put all contracts side by side, including cover that comes with credit cards, bank accounts and club memberships. Duplication is common in liability, roadside cover, travel and luggage. We do this comparison free of charge.
Pick the types, give the details insurers need, get a comparison.
Ten life situations, sorted honestly
Find your case, see which policy pays
NAMMERT Assekuradeur GmbH, insurance broker licensed under section 34d(1) of the German Trade Regulation Act, broker register no. D-C08Q-TOSD4-37. For boat and yacht insurance we act as underwriting agency, not as broker. Statutory disclosure (German)