I'll tell you important insurances you should have as an adult and what to look out for.
Insurance ... A topic with which hardly anyone wants to deal. Nevertheless, it is mega important at least 1x a year to make a check.
There are important insurances that you should definitely take out and those that are not mandatory.
So that you don't lose the overview, I've done some research for you.
This article refers to Germany. In Austria and Switzerland, the rules are partly the same, but partly different.
How often you should check important insurances
Germans are known to be a particularly cautious people. On average, each inhabitant spends around 2,000 euros a year on insurance.
However, many take out insurance policies that are not even necessary or do not properly cover the risk.
Check your insurance regularly. At the latest when something changes in your life.
So if you
- you move or build a house,
- have a child,
- get married or divorced,
- starting a new sport such as climbing, touring or other sports where the risk of injury increases
If you are very motivated, check important insurances 1x per year and see if everything you need is really covered.
Before taking out a new insurance policy, always consider whether you can pay the costs out of your own pocket in the event of an insured event. If this is possible, then you do not have to take out the insurance.
At first glance, this means important insurances that are not absolutely necessary. Like cell phone insurance for a smartphone you've had for more than a year or bike insurance for a bike that's not worth much anymore.
In the first year, cell phone insurance might make sense. But after that time, you can stop paying for it. Because it's just not worth it anymore.
If you check important insurances 1x a year, you will notice such things. You can save a lot of money.
Important insurances you should have as an adult
There is insurance for really everything. From the dog and horse, to the dryer, to death insurance, fire insurance, insurance for the camera. But what makes any sense at all?
Well, that depends entirely on your life situation. Insurance for camera equipment makes a lot of sense for a professional photographer. For the hobby photographer with a mediocre camera, however, to question.
Nevertheless, there are important insurances that everyone should have, namely a health insurance and a liability insurance.
In addition, there are a number of important insurances that can be useful. Whether they really are depends on your life situation.
You don't have a choice in some insurance policies because they are required by law. These include: Health insurance, motor vehicle liability insurance and in Germany for many also the statutory pension insurance.
Let's look a little closer this time.
With all insurance policies, the following applies: Risks that could financially ruin you should be covered. Like liability damage that you cause to other people or property.
Like a leaking washing machine that floods the entire apartment building. Or when you as a pedestrian - unintentionally - push a cyclist onto the road or even hit him with your car.
Required by law: Health insurance as an important insurance
Everyone must have health insurance, either statutory or private. There is no exception, because this is required by law.
The health insurance
- is an insurance against diseases and their consequences
- Partially reimburses the cost of therapies for illness, maternity and often after accident
- is mandatory by law
Here you can calculate how much your health insurance will be!
You have the free choice
There are around 110 statutory health insurance funds in Germany. The benefits are mostly the same, but many offer additional voluntary benefits or are cheaper/ more expensive than others. Which one you choose is up to you.
Therefore, it can be interesting to change the insurance. You can change the statutory insurance quickly and without much effort. After the change you are bound to the new health insurance for 18 months.
The change itself can take two to three months.
Some health insurance companies may offer special optional tariffs such as deductibles or premium refund tariffs. If you choose a voluntary plan, you are bound to the health insurance company for up to 3 years.
About 95 percent of the services must be covered by the health insurance fund. They are legally obliged to do so. This includes all medically necessary measures and also hospital stays.
Some insurance companies offer additional benefits such as dental cleanings or alternative healing methods.
So before you take out additional dental insurance, it's worth checking whether parts of it are already included in your statutory health insurance.
You may notice that the benefits can differ greatly if you want to go on vacation with someone. You have to pay for the vaccination and your friend's health insurance covers the costs.
The amount of your monthly premiums depends on your income. Which benefits are covered to what extent also depends on age and pre-existing conditions.
The basic amount for compulsory health insurance is 14.6%. Your employer pays half of the costs.
Liability insurance for the car
Owning a car can be quite expensive. Every vehicle must have liability insurance. You can also take out comprehensive or partial insurance.
Liability-only insurance makes sense especially for old cars that have little value.
Liability insurance covers damages that occur in a traffic accident. Personal injury, property damage and financial losses are covered.
There are very large price differences in car insurance. If you drive accident-free for longer, the premiums are reduced. This deduction is called a no-claims bonus in Germany and a bonus-malus in Austria.
The amount you pay for your car insurance depends on which policy you choose and what is covered. But it also depends on your age, the age of the vehicle, the annual mileage and many other factors.
It's definitely worth taking a close look. You can save a lot of money on car insurance.
Here's what you need to know before you buy car insurance!
Sensible insurances that are not mandatory
And then there are a few important insurances you should definitely take out.
The homeowner's insurance
Called household insurance in Austria. It is not required by law, but many landlords ask for confirmation from their tenants.
This covers damage to the home. However, associated rooms such as the cellar, garage, terrace or garden are usually also insured.
Possible damage
- Fire
- Water damage
- Vandalism
- Burglary
- Storm or hail damage
Why you should have such an important insurance? Water damage can happen quickly. All you have to do is leak a hose from your dishwasher or washing machine and you're in trouble.
The apartment is under water. The walls are wet, the parquet floor is dissolving and maybe the water is dripping from your neighbor's ceiling. This will be incredibly expensive if you don't have insurance.
This comparison calculator shows if you're paying too much for your insurance!
In addition, the objects of other persons living in the household or borrowed objects are also insured. With some insurances, bicycles or motor scooters are already covered in the household insurance. It is worth taking a close look at this.
The amount of homeowner's insurance depends on the place of residence and the size of the apartment.
The private liability insurance
Everyone should take out this insurance!
It's not mandatory, but shouldn't be missing when you're researching important insurance policies.
Private liability insurance can protect you from costs that threaten your existence. It comes into play when a person comes to harm through your fault. That is, if you act carelessly or recklessly.
This can range from red wine stains on an expensive carpet or a scratch on a stranger's car to accidents resulting in physical damage.
Find out here why personal liability insurance is so important!
Not everyone has to have such an insurance. Often you are also insured through your partner, even if you are not married but only live in the same household. Make sure you read up on this before you take out personal liability insurance.
Without this insurance, you will have to pay for any damages you cause to someone, for an unlimited amount.
Do you have a dog or a horse? Then you should also take out this insurance. This way, damages caused by your animals are also covered.
Property damage, total loss and personal injury are insured.
Family liability is worthwhile for children. Damage caused by children is also covered here.
Private liability insurance is available from about 50 euros per year. Depending on the service, the rates can be higher.
The travel insurance
It makes sense especially if you travel abroad and spend a lot of money on this trip. It can quickly happen that 2 days before the vacation you get so sick that you can not go.
Or even worse: You break your leg on vacation or get a stomach bug.
If you have travel health insurance, you can seek the help of a doctor abroad.
You will be reimbursed for outpatient treatment, medications and hospitalization. Most insurances also cover return transport.
Outside the EU, travel health insurance is highly recommended. Otherwise you have no insurance coverage in case of illness.
Take a close look: credit cards often offer protection for travel. And that's when you pay for your vacation using the card. It's worth taking a closer look!
Attention: In these situations you should definitely take out travel insurance!
The private accident insurance
If you have an accident, you can suffer damage to your health. And that can be expensive. Sometimes the apartment has to be rebuilt.
Insurance companies pay out a one-time sum in the event of an accident resulting in full or partial disability.
This makes sense for those who have high-risk hobbies such as horseback riders, skiers, climbers, surfers, divers, etc.
You have to calculate with about 100 to 500 Euro per year.
Find out more about private accident insurance here
The pension insurance
Unfortunately, the statutory pension insurance is relatively small. But it is a very important building block for your life after work.
For employees, pension insurance is automatically deducted from their wages each month. Self-employed persons can voluntarily take out an additional private pension plan.
Already thinking about retirement? Find out more about it here!
Our conclusion
There are many important insurances, but not all are required by law, many you can take out voluntarily. Here, especially a travel insurance before the vacation, a private liability insurance and a household insurance make sense.
Check your insurances regularly to see if they still fit your life situation and if you can save money in one or the other area. Take the time to do this. It is worth it! :)
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