You've been cramming with your study group for hours, and without a regular supply of coffee, you would have fallen asleep long ago. As your eyes begin to close, you reach for your mug for another sip of the delicious pick-me-up, but your hand accidentally knocks it over – and the hot contents spill all over your classmate's laptop. This is, of course, incredibly annoying, especially if you don't have personal liability insurance. But is it actually mandatory? We'll explain the most important facts about personal liability insurance.
What is private liability insurance?
As the coffee mishap just described illustrates, personal liability insurance comes into effect when you damage someone else's property or injure other people yourself. You pay a small premium to the insurance company and are then protected against such accidents where property or people are damaged.
Liability insurance yes, compulsory insurance no
Private liability insurance is not mandatory in Germany. The word "mandatory" here refers not to the insurance itself, but to the legally required liability, meaning your obligation to be liable. In the example mentioned earlier, you are therefore liable for the damaged laptop. Whether the damage was intentional or accidental is irrelevant – you must use your own assets to cover the cost of replacement.
Private liability insurance is not mandatory, but other types of liability insurance are indeed required. For example, drivers must take out motor vehicle insurance as liability coverage, and it is also mandatory in some professions, especially when industrial machinery or motor vehicles are used. Doctors, architects, and management consultants, too, must have professional liability insurance before they are allowed to practice.
Private liability insurance is extremely useful
So you see, while personal liability insurance isn't mandatory, it's highly recommended. A broken laptop can easily cost several hundred euros, and a damaged car or even an apartment could cost you a lifetime. If someone else's physical health is affected, the costs can sometimes reach millions – leaving you heavily in debt. Personal liability insurance can prevent such massive debt from accumulating.
Private liability insurance for students
Students have little money – which makes it all the more important to protect themselves against mountains of debt with private liability insurance. We at allmaxx offer a free comparison of different providers. Find the best offer for you here .
