Liability insurance for Chancenkarte holders

In Germany, there is no legal obligation to take out personal liability insurance – but it is still essential. Even a small mistake in everyday life can quickly have expensive consequences.

Holders of a Chancenkarte can also take out liability insurance without any problems. Many providers also allow a combination with travel health or accident insurance – ideal for the first time in Germany.

New travellers with the Chancenkarte should take out insurance at an early stage in order to be protected in an emergency – whether in the event of mishaps in everyday life or unexpected damage. You can find all the facts and tips on comparing insurance policies as well as important information for travelcard holders in the following article.

Why is liability insurance important?

We’ve all been there: you’re visiting friends or acquaintances and accidentally cause damage. Whether big or small – in the worst case scenario, it can be really expensive. Depending on which item has been damaged, a repair or replacement can be quite expensive and, in an emergency, threaten your livelihood. With liability insurance, you are covered in this respect and do not have to pay for the damage yourself or only pay a small amount.

What is private liability insurance?

If you have accidentally caused damage to a person, private liability insurance will cover the resulting costs. The insurance company first checks whether the claims for damages are justified and, if necessary, defends against unjustified claims. Liability insurance covers most everyday risks. IMPORTANT: The use of motor vehicles is not covered. Special motor vehicle liability insurance is required for this.

What damage does private liability insurance cover and what does it not cover?

Personal liability insurance generally covers many claims for damages against third parties – for example, in the event of personal injury or property damage that you accidentally cause.

IMPORTANT: Not all damage is automatically included. Damage to your own property – for example due to fire, water or theft – is not covered by liability insurance. Household contents insurance and glass insurance offer additional protection in this respect.

Private liability insurance covers the following losses:

Property damage: e.g. if you damage other people’s property
Personal injury: e.g. if you accidentally injure someone
Financial loss: e.g. if someone suffers financial loss as a result of your behaviour
Damage caused by gross negligence: e.g. if you cause damage through carelessness.

Private liability insurance does not cover the following losses:

Intentionally caused damage: damage that you intentionally cause
Damage to your own property: e.g. if you damage your own property
Glass damage to your own property: Some liability insurance policies offer an extension that also covers glass damage to your own property
Professional risks: e.g. damage that occurs in the course of your professional activity
Motor vehicle damage: this is where separate motor vehicle liability insurance comes into play

What does liability insurance cost?

The cost of liability insurance varies depending on the provider and the scope of benefits. You can get good liability insurance for as little as 30 to 50 euros per year. (Source: Finanztip.de/haftpflichtversicherung). Families usually pay more, depending on the number of insured persons and the desired insurance cover.

How do I take out personal liability insurance?

There are numerous comparison portals on the Internet that rate and sort liability insurance according to the price-performance ratio. Here you can get a good overview and choose the liability insurance with the range of benefits that suits you best.

A sum insured of at least 10 million euros is recommended. You can take out the insurance online or make an appointment with your insurance advisor on site. Have important documents ready, such as your ID, residence permit, bank details and confirmation of registration.

IMPORTANT: Gross negligence should definitely be covered so that you are also protected if you make a serious mistake (for example, if you leave a lit candle unattended and cause a fire in your home).

In addition, there should be bad debt cover. This protects you if someone else harms you but is unable to pay for the damage. Also pay attention to the amount of the excess. You have to pay this amount out of your own pocket in the event of a claim before your insurance pays out.

A higher deductible means that you pay more yourself in the event of a claim. Although this reduces your premium costs, you will have to bear significantly more of your own costs in the event of a claim.

Example:
You have liability insurance with a 150€ deductible.

Damage of 500€ is incurred.
You pay 150€ , the insurance covers 350 .€

If you didn’t have a deductible, the insurance would cover the full 500€ , but your insurance premium would be higher.

Tips & common myths about liability insurance

There are many myths surrounding the topic of “liability insurance”. Many people assume that they don’t need liability insurance because nothing “serious” has ever happened. Because none of us can see into the future and even a single claim can cause extremely high costs, it is always worth taking out private liability insurance.

Another false assumption: “Liability insurers never pay anyway.” A reputable insurance company checks the damage very carefully and pays the costs incurred if the claim is justified. The contrary assumption that “insurance companies pay for every claim” is also wrong. Intent, breach of contract or certain risks (e.g. occupational damage) are usually excluded from the insurance.

Another common misconception: “I am automatically co-insured through my partner.” This only applies in certain cases, e.g. if you are married or in a registered civil partnership. Unmarried couples must insure themselves.

IMPORTANT: Foreigners who work in Germany are also not automatically insured through their employer or residence permit. This applies in particular to holders of the Chancenkarte.

Pets should also be covered by their own pet owner’s liability insurance. Regular liability insurance only covers small animals. These include cats, hamsters, rabbits, mice, ornamental birds, turtles, aquarium fish and terrarium animals.

Important tips:

Private liability insurance makes sense from the age of 18 – but children are often insured through their parents until the end of their first education

Decide on a sufficient sum insured (at least 10 million euros)
Note important additions, e.g. loss of keys, damage caused by courtesy, glass breakage
Check and compare your insurance cover regularly and adjust it to changes in your life, e.g. if you get married or have a child

Children under the age of 7 (or under the age of 10 in road traffic) are not liable. However, there are tariffs that still pay out, e.g. to compensate for damage caused to friends.

Conclusion

Holders of the Chancenkarte should definitely take out private liability insurance in good time. This can avert claims for damages that threaten your livelihood. A minor accident can lead to a lifelong claim for damages, so it is always worth taking out liability insurance.

Many insurers now also offer contracts and customer service in English, so misunderstandings can be avoided when concluding a contract. Costs can be saved by regularly comparing rates.

IMPORTANT: Foreign applicants are NOT automatically insured via a residence permit or a German employer. A residence permit (such as the Chancenkarte) does not include private liability insurance. Employer insurance also only applies to professional activities, not to private life.