Benefits
Why compulsory private insurances matter
While most social protections in Germany are covered by the statutory insurance system, certain activities require compulsory private insurances to ensure personal responsibility and legal compliance. These insurances are mandatory in specific cases, such as owning a car, working in regulated professions, or having a dog and help protect against potentially high financial risks. Understanding and securing the right coverage is essential for avoiding legal issues and ensuring peace of mind in everyday life.
Motor vehicle liability insurance
Whether it's a car, motorbike, motorhome, scooter, moped, quad bike, S-pedelec or e-scooter: as the owner of a motor vehicle, you are legally obliged to take out liability insurance. Even if you are leasing a vehicle, you are considered the owner and must take out insurance. As the owner, you are also responsible for ensuring that the liability insurance applies to everyone who drives the vehicle. The purpose of insurance is to ensure that the victim is compensated even if the person who caused the accident is unable to pay or would be financially ruined by the victim's claims. This is why you should never drive without insurance cover: In the case of serious injuries, claims can easily run into the millions, which you would have to pay yourself without insurance.
Dog liability insurance
The individual federal states determine whether dog liability insurance is compulsory. In Berlin, Hamburg, Lower Saxony, Saxony-Anhalt, Schleswig-Holstein and Thuringia, all dogs must be insured.
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Nine federal states have a limited insurance obligation. This means that liability insurance only has to be taken out if the owner keeps a dog breed that the state classifies as dangerous or if the dog displays aggressive behaviour. The federal states with partially mandatory liability insurance include: Baden-Württemberg, Bavaria, Bremen, Hesse, North Rhine-Westphalia, Rhineland-Palatinate, Saarland and Saxony.
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As a rule, dogs are classified as dangerous if they are expected to be more aggressive and dangerous towards humans and animals due to breed-specific characteristics, breeding, behaviour and/or training. These can be so-called fighting dogs that were originally bred for fighting purposes, but also crossbreeds and dogs that have become aggressive as a result of training or incorrect behaviour or where an increased risk must be assumed due to incidents that have already occurred. As a rule, a special licence must be obtained to keep these animals, which, depending on the federal state, may be dependent on taking out liability insurance. Occasionally, a character test is also required for dogs classified as dangerous. Some federal states give owners the option of submitting a negative certificate which certifies that their dog does not have an increased propensity to fight or aggression.
Professional liability insurance
Professional indemnity insurance is liability insurance for certain professions that have an increased risk of financial loss due to possible incorrect advice. Some professional groups are required to take out this type of professional liability insurance. These include lawyers, notaries, doctors, pharmacists, physiotherapists, architects and engineers.