Sum insured (coverage limit)

The sum insured (Deckungssumme) is the maximum amount your insurance pays out in the event of a claim.

Recommended sums insured (Germany):

Private liability:

• Minimum: 10 million euros (personal injury, property damage, financial loss)
• Better: 50 million – costs only a few euros more per year
• Why so high? A serious personal injury (paraplegia) can cause lifelong care costs, compensation for pain and suffering and loss of earnings of several million euros

Motor liability:

• Statutory minimum: 7.5 million for personal injury, 1.22 million for property damage
• Recommended: 50–100 million (standard in most policies)

Occupational disability:

• Recommended: 75% of net income as a monthly disability pension
• With €3,000 net: insure at least €2,250 disability pension

Term life insurance:

• Rule of thumb: 3–5 years' gross salary + outstanding loans
• Example: €60,000 gross × 5 = €300,000

When the sum insured applies:

The damage is €500,000, your sum insured is €250,000 → the insurer pays €250,000, you have to pay the remaining €250,000 out of your own pocket. So: better too high than too low!