Germans like stability and security. Hardly any other country has so many insurance policies per capita – an average of six. But is such extensive protection really necessary? Here you will find an overview of the most unnecessary insurance policies that only cost you hard cash.
Unnecessary insurance: Use this trick to find out which ones you don’t need
The insurance that every person absolutely needs is very different. Financial expert Barbara Sternberger-Frey recommends talking to the so that your own sense of security is satisfied SWR the so-called “GAU principle“. This principle is based on the following question: What damage would one do when Groasted Aincreasing Udrive accident into financial ruin? Based on the resulting answers, you can review your existing insurance and, if necessary, improve it or throw out unnecessary insurance from the portfolio.
You can confidently cancel these 4 policies
Some are not protected enough, others too much: In both cases, the person concerned can be expensive. So that you don’t spend a lot of money unnecessarily on your policies, we’ll tell you which insurance policies you can confidently cancel:
death benefit insurance
Life insurance is designed to protect family members in the event of death. But experts warn against taking out this policy. Life insurance is life insurance in disguise.
glass breakage insurance
Normally, property owners can do without glass breakage insurance. Replacing a damaged pane can cost a few hundred euros, but in most cases a broken pane doesn’t lead to financial ruin. If the person who caused the damage is also known, you can make a claim against the person’s liability insurance.
Personal Accident Insurance
If you, as a driver, have what is known as passenger accident insurance, you can cancel it directly in most cases. Because this often only takes on risks that are already covered elsewhere – such as by motor vehicle liability insurance. Although premiums for personal accident insurance are low, they offer you little benefit. Because the actual damage is almost disproportionate to your deposits.
Buying new glasses can be expensive. It is precisely for this reason that many people are offered glasses insurance when they buy them. But this doesn’t always make sense. Because what many people don’t know: In the event of damage, the insurance company does not always cover the full value of the glasses. For example, in most cases, a frame replacement will only be granted if the glasses are broken, damaged or at least two years old. If you also want a special frame or higher-quality lenses, you usually have to pay extra.
Everyone needs this insurance
You should definitely have these insurances:
- Everyone must have health insurance. If you also travel abroad frequently, you should definitely take out travel insurance.
- Property owners should definitely have homeowners insurance. If the property is in a flood area, for example, elementary insurance makes sense.
- Employed people should think about taking out what is known as disability insurance. After all, every fourth person becomes temporarily or permanently unable to work in the course of their working life as a result of an accident or illness.
- Car owners should not drive without car insurance.
- For many people in Germany, household contents insurance and legal insurance also make sense.
Sources: welt.de, swrfernsehen.de and finanzen.net
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