What is a default coverage in liability insurance?

Minor mishaps happen to everyone, but it's especially when it comes to bigger ones that you're glad to be protected by good liability insurance. If someone is injured because of you, a mountain of debt can quickly accumulate, which thankfully your insurance will cover. But what happens in the opposite scenario – if you've been injured and the person responsible is unable to pay? That's where uninsured motorist coverage comes into play.

The bad debt insurance protects you from this.
to be left with the costs

If someone who caused damage cannot pay for it, for example, because they are uninsured or demonstrably unable to do so financially, their own insurance will step in and cover the damage. However, this only applies if uninsured motorist coverage is included in your liability insurance policy! Otherwise, you will have to pay all costs yourself, even though you are the injured party.

Important: Coverage for claims against uninsured or underinsured parties is not a standard feature of liability insurance. Basic policies, in particular, often do not include this benefit. Furthermore, a separate sum insured may be set for claims against uninsured or underinsured parties.

Conditions for the bad debt coverage

For the bad debt coverage to come into effect, several conditions must be met:

• First, enforcement proceedings must be initiated; only if these prove unsuccessful will the owner's insurance pay out.
• Some insurance companies specify a minimum damage amount that must be reached in order for the damage to be covered.
• The payment claim must have been established by a legally binding judgment.
• Insolvency proceedings against the party responsible for the damage were either rejected in advance or not carried out satisfactorily.

Private liability insurance for students at a low price

You can see how useful it can be to have good liability insurance – all it takes is an insolvent, uninsured cyclist who runs you over, and you could be stuck with the resulting costs. We at allmaxx offer you a free comparison of different insurance providers and find the best offer for you among the available personal liability insurance policies. You can get information quickly and easily, without obligation, at studentenhaftpflicht.de .