Insurance guidance for German consumers on risk management

Consumer protection organizations in Germany recommend a prioritized approach to insurance to avoid unnecessary costs. The primary focus should be on high-risk coverage that could lead to financial ruin, such as private liability insurance. For personal liability, experts suggest a coverage sum of at least 10 million euros, though 50 to 100 million euros is often recommended for a minimal additional cost.

Other essential protections include health insurance, which is mandatory in Germany, and motor vehicle insurance for drivers. Depending on individual circumstances, risk life insurance for earners or homeowners' insurance for property owners may also be necessary.

Conversely, consumers are advised to be critical of smaller policies like mobile phone, gadget, or travel luggage insurance. These often carry high annual premiums—sometimes between 10 and 30 percent of the purchase price—and may include deductibles or limited theft coverage. Before purchasing, individuals should evaluate whether they could afford the damage themselves or if they already have existing coverage.