€3 a month, signed up online in minutes, done. Comparison portals love sorting private liability (Privathaftpflicht) tariffs by price, and that's exactly what turns into an expensive trap for many people. When a real claim happens, the cheap tariff often fails to cover the one thing that can actually threaten your finances.
Why comparison portals set the wrong incentives
Most comparison tools sort results by premium by default. The cheapest tariff sits at the top, gets clicked the most, and ends up being signed the most, regardless of what it actually covers. As I explained in the Portal Trap, clicking "cheapest option" is no substitute for actually reading the policy conditions. With private liability insurance this is especially risky, because the yearly price gap between a cheap and a strong tariff is often just a low double-digit amount, while the coverage gap between them is enormous.
The 3 most expensive gaps in cheap tariffs
Anyone who shops on price alone regularly overlooks exactly the components that can decide a claim worth several hundred thousand euros:
- Coverage limits set too low: Many cheap tariffs only cover €3 to 5 million. In cases of severe personal injury leading to permanent incapacity, that is often nowhere near enough.
- No claim-default protection: If someone damages your property but has no, or insufficient, liability cover of their own, you are left paying without this component.
- Excluded favor and borrowed-item damage: Help a friend move and drop their TV, or damage a borrowed drill, and many cheap tariffs simply won't pay.
Did you know?
Under German civil law (§ 823 BGB), you are personally liable with all of your current and future assets, without limit. In cases of severe injury requiring lifelong care, pain and suffering compensation, lost earnings, and nursing costs can quickly add up to seven figures over decades, far beyond the coverage limit of many cheap tariffs.
5 criteria for a genuinely strong tariff
Before signing a tariff purely because of the price tag, check these five points:
- Coverage limit: At least €50 million, especially for personal injury.
- Claim-default protection: Steps in when the person at fault cannot pay themselves.
- Favor damage: So helping out friends and family doesn't become a financial risk.
- Borrowed-item damage: Covers borrowed tools, electronics, or sports equipment.
- Worldwide coverage: Including temporary stays abroad, such as during a holiday.
Why a broker comparison beats clicking "cheapest tariff"
As your fiduciary representative, I compare more than just premiums, I check the actual conditions in the fine print. That way you find a tariff that genuinely pays out when it matters, often for just a few euros more per year than the seemingly cheapest option on a portal. You'll find full details on coverage, family, dog owner, and homeowner options, plus common questions, on the private liability insurance overview page. If you are new to Germany, Do I need liability insurance in Germany? explains what landlords ask for and whether your policy from home still applies.
Checklist: Is your private liability cover actually solid?
- Is your coverage limit at least €50 million?
- Does it include claim-default protection?
- Are favor and borrowed-item damages covered?
- Did you compare by coverage, not just by price?