There is simply no one-size-fits-all answer to the question “Which insurance is the best?”. The best insurance is always the one that exactly matches your current life situation, your future plans and your personal risk tolerance. It is a deeply personal decision, not an off-the-peg solution.
Why there is no such thing as the best insurance
The search for the perfect insurance is a bit like the search for the perfect pair of shoes. A marathon runner needs completely different shoes than someone who sits in an office all day. If the two swap shoes, the result is sure to be blisters and frustration. It’s exactly the same with your insurance cover: it has to fit like a glove.
So instead of giving you a general answer, we would rather provide you with a compass. This guide is designed to help you find your own way through the jungle of tariffs. The aim is clear: in the end, you should not have just any cover, but exactly the cover that is really there for you in an emergency.
Your life is the benchmark
The very first and most important step is always an honest assessment of your own situation. Insurance cover is not something static, but a companion that must evolve with your life. Basically, there are three core factors that determine your personal needs:
- Your current living situation: Are you still a student and living in a shared flat? Or are you in the process of starting a family and building a house? Perhaps you are already enjoying your retirement? Each of these phases has its own risks.
- Your plans for the future: Are you dreaming of a trip around the world, planning to buy a property or taking the plunge into self-employment? Big plans need protection that grows with you.
- Your risk appetite: How much financial risk are you actually able and willing to bear yourself? Although a higher deductible lowers the premiums, it also means that you will have to dig deeper into your own pocket in the event of a claim.
The key to finding the right insurance is not to find the cheapest policy, but the most valuable one. And valuable means: the benefits cover precisely the risks that could threaten your financial existence the most.
Ask the right questions first
Before you rush headlong into comparing tariffs, take a deep breath and take a step back. The trick is to ask the right questions before looking for answers. So don’t just ask yourself “Which insurance is the best?”, but dig deeper:
- Where are the biggest financial risks lurking in my life?
- What damage could I not pay for on my own?
- What protection is perhaps even legally required for me (such as motor vehicle liability)?
- What protection gives me personally the feeling that I can sleep peacefully at night?
This honest self-reflection is the foundation for every smart decision. It turns a confusing search into a clear, structured process. By analyzing your personal finances and your life circumstances as a starting point, you ensure that your insurance cover is not just a good fit, but really protects you.
Your foundation: a check of the most important insurances
Think of your insurance cover like a house. You don’t start with the roof, but first pour a solid foundation. Without that, the whole place will collapse at the first storm. It’s the same with insurance: There are a handful that form the absolute foundation of your financial security. They cover the risks that could cost you your livelihood in the worst-case scenario.
The good news is that you don’t have to take out dozens of policies. The point is to insure yourself specifically against the really big disasters – events whose financial consequences you could never pay for out of your own pocket. Everything else is often just “nice to have” or even superfluous.
This graphic gets to the heart of the matter and shows how your personal situation, your plans and your risk tolerance form the basis for your customized protection.
This is precisely the key point: the “best” insurance is not available off the shelf. It always depends on these three personal pillars.
Personal liability insurance: an absolute must for everyone
If there is one insurance policy that everyone in Germany really should have, it is personal liability insurance. It is the most important building block for your financial protection. Why? Quite simply, it covers you if you accidentally cause damage to other people or their property.
A small moment of carelessness is often enough to cause millions in damage. Imagine a pedestrian overlooking a red light and causing a serious traffic accident. Without liability insurance, you are liable with your entire personal assets – for the rest of your life.
Good personal liability insurance often costs less than 100 euros a year, but protects you against risks worth millions. It is the smallest investment with the greatest protective effect.
But don’t worry, it doesn’t always have to be the really big dramas. The insurance also covers everyday mishaps:
- You accidentally knock an expensive TV off the shelf in an electronics store.
- Your child scratches the paintwork of a parked car with their bicycle.
- You lose the key to your rented apartment and the entire locking system has to be replaced.
Precisely because this insurance is so fundamentally important, it is worth taking a closer look at the details. In our guide, we show you what is important and how you can find the best personal liability insurance for your needs.
Household contents insurance: protection for your belongings
While liability insurance protects third-party property, household contents insurance takes care of your own. It covers everything in your apartment or house – from furniture and clothing to electronics. It protects you against the financial consequences of fire, mains water, storms, hail or burglary.
Let’s imagine this: A burst pipe floods your entire home and renders the furnishings unusable. Or a burglar steals your laptop, jewelry and other valuables. The cost of a new purchase can quickly run into tens of thousands. It is precisely this value that household contents insurance will compensate you for.
Car insurance: compulsory for every vehicle owner
Anyone who owns a car in Germany knows that nothing works without motor vehicle liability insurance. It is required by law and is a prerequisite for getting a registration for the vehicle in the first place. It covers all damage that you cause to others with your car, whether personal injury or property damage.
In addition, there is voluntary comprehensive insurance that protects your own car:
- Partial casco: Covers damage for which you are not responsible (e.g. theft, glass breakage, wildlife accidents).
- Fully comprehensive cover: Offers the full package. It covers everything from the partial casco and also pays for self-inflicted accidents and vandalism.
Personal liability and household contents insurance in particular are therefore essential for most households. This is also shown by the German Insurance Award, which regularly honors the best providers. VHV, for example, was the overall winner in personal liability insurance, while Die Haftpflichtkasse and Gothaer came out on top in personal liability insurance and Axa and Baloise in household contents insurance. According to the German Institute for Service Quality, these providers scored well with strong conditions and good service. This also explains why around 38 percent of all contracts are concluded via price-conscious comparison portals – because a good comparison is always worthwhile.
How can I recognize a good tariff? More than just the price counts
When it comes to finding the best insurance, the first impulse is almost always to compare prices. That’s logical – who wants to pay more than necessary? But be careful: when it comes to insurance in particular, the cheapest rate can turn out to be the most expensive decision of your life in an emergency.
Think of it like a bicycle helmet. A cheap model might be enough for a leisurely Sunday ride. But for a real race? Then you would also look for the highest quality and best protection, wouldn’t you? It’s exactly the same with insurance. It’s about the quality of protection, not just the price.
A really good insurance tariff is a smart investment in your financial security. To recognize it, however, you need a trained eye for the details that go far beyond the monthly premium. It’s about understanding the small print and separating the wheat from the chaff.
Understanding the key tariff details
To really evaluate a tariff, you need to know its three most important components. These are the be-all and end-all in the selection process and determine whether your insurance is a rock in the storm or just a paper umbrella in an emergency.
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The sum insured: This is quite simply the maximum amount that the insurance company will pay in the event of a claim. It sounds simple, but it is absolutely vital, especially for personal liability insurance. Too little cover can ruin you if a claim runs into the millions.
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The excess: This is the amount that you pay out of your own pocket for each claim before the insurance pays out. A higher excess lowers the premium, but think carefully about how much you can really afford to pay if the worst comes to the worst.
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The exclusions of benefits: Every contract has clauses that exclude certain losses from cover. The devil is often in the detail here. A classic example is “gross negligence” – if this is also insured, you are also protected if you forget a candle on the table.
A good tariff is characterized by a high sum insured (at least 50 million euros for liability insurance), a deductible that suits you and as few comprehensible benefit exclusions as possible.
Why the small print makes all the difference
Just imagine: A cheap basic rate of household contents insurance may protect you against fire. But what about your expensive e-bike that is stolen from the locked cellar? Without the additional “bicycle theft” module, you will be left completely empty-handed. In this case, the few extra euros a month would have saved you from thousands of euros worth of damage.
Or let’s take the so-called bad debt cover in personal liability insurance. This is worth its weight in gold if someone causes you damage but has neither insurance nor money. Without this clause, you are stuck with the costs. It is precisely details like this that make a standard tariff a real protective shield. If you cut corners here, you are saving at the wrong end.
A checklist for your tariff comparison
Don’t be dazzled by colorful advertising promises. Instead, use this checklist to systematically examine offers and find the best insurance for your personal situation.
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Is the sum insured correct?
- Personal liability: Is the sum high enough for the worst-case scenario? Experts recommend at least 50 million euros to really be on the safe side.
- Household contents: Does the sum insured correspond to the actual value of all your possessions? Attention: Underinsurance can lead to benefits being reduced!
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Does the deductible suit your wallet?
- Can you really pay the selected amount (e.g. 150 or 300 euros) yourself in the event of a claim without stomach ache?
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Are the really important extras included?
- Are loss of keys, bad debts or damage caused by gross negligence covered?
- Does your household contents insurance include cover for surge damage or bicycle theft if this is important to you?
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Are there any nasty pitfalls in the exclusions?
- Read exactly which scenarios are not covered. Can you live with these gaps in cover?
This process will help you get a real feel for the services on offer. If you want to know more about the methodology behind a meaningful insurance price comparison please take a look at our further articles. This will ensure that your cover doesn’t come with any nasty surprises at the end of the day.
Why a regular insurance check-up is so important
Think of your insurance policies like a closet. What fitted perfectly five years ago may now be too tight, too loose or simply no longer suit your style. It’s the same with your insurance cover: life changes, and a policy you once took out is not a free pass for eternity.
Many people take out insurance and then simply file it away. This is an often unnoticed but expensive mistake. The insurance market is constantly changing. Every year there are new tariffs, old ones are improved and the competition leads to better conditions. Those who simply remain loyal to their contracts are rarely rewarded for this. Those who actively compare, on the other hand, almost always save money.
A regular check-up is therefore not a chore, but a really good strategic opportunity. It’s the best way to make sure that your cover keeps pace with your life and you don’t throw money down the drain on outdated benefits.
When life changes the rules of the game
Certain events in life are like a wake-up call for your insurance policies. They change your needs so fundamentally that it must be easy to adapt. If you ignore these milestones, you risk dangerous gaps in protection or paying for risks that no longer exist.
Here are the most important triggers for an immediate insurance check:
- Moving house: A larger home often has a higher household contents value. Are you moving in with your partner? Perfect, then you can bundle many contracts and save a lot.
- Marriage or partnership: As soon as you have a joint household, you only need household contents and personal liability insurance. There is real savings potential here!
- Job change: More salary? Then your occupational disability cover should grow with it. A company car, on the other hand, can make a private car superfluous.
- New arrival: A child simply turns everything upside down. Suddenly you have responsibility for a little one – and issues such as term life and disability insurance suddenly become hot topics.
- Major purchases: Buying a house or an expensive e-bike changes the value of your property. This calls for an adjustment to your household contents insurance or the conclusion of homeowners’ insurance.
Don’t see changing insurance as a burden, but as an opportunity. It is your opportunity to free yourself from expensive legacy burdens and adapt your cover to your real, current life.
The dynamic insurance market is your advantage
The insurance market in Germany is huge and always on the move. This is good news for you, because competition means better offers. The German Insurance Association (GDV) reports constantly growing revenues – forecasts speak of an industry turnover of over 250 billion euros. In such a competitive environment, where car premiums, for example, are rising noticeably, comparison is the best way to avoid paying more. Younger, price-conscious customers in particular have understood this: A full 38 percent of insurance policies are now taken out via comparison portals, where people are quick to switch when they find better conditions. If you want to delve deeper, you can find out more about how the insurance industry is developing in the GDV reports.
You should take advantage of this dynamic. An annual check-up, preferably always at the same time, helps you to maintain an overview. This will ensure that your policies are not only the right answer to the question today, but also tomorrow: “Which insurance is best for me?”
Such a check is an important building block for forward-looking insurance. In our articles on financial planning we give you even more tangible tips on how to strategically get and keep your finances on track.
Practical examples: How to find the right insurance for your life
Theory is all well and good, but how do you find the right insurance in real life? It usually helps to look at a few typical situations in order to better understand your own situation. Let’s take a look at three very specific examples that show how different the path to the right cover can be. Perhaps you recognize yourself in one of the scenarios.
Scenario 1: The student in the first pad
Max is 22, a student and has just moved into his first apartment. His budget is naturally tight and his belongings are still manageable: a laptop, some furniture from Sweden, his bike and clothes. Now he asks himself: What do I really need, and what is just frills?
For Max, every euro counts, so the solution has to be lean and affordable. The absolute foundation that he cannot ignore is personal liability insurance. Now that he is standing on his own two feet, he is no longer covered by his parents’ insurance. This policy protects him from financial ruin if he accidentally causes damage to someone.
Furthermore, household contents insurance is a smart idea. Sure, his furniture isn’t expensive, but a stolen laptop or water damage could throw him off the rails financially. A simple household contents insurance policy that includes bicycle theft is perfect here.
- Priority 1: Personal liability (high sum insured, doesn’t cost the earth).
- Priority 2: Household contents insurance (adjust the sum insured to the real value, include bicycle cover).
- The result: solid basic protection that covers the biggest financial risks without breaking the student budget.
Scenario 2: The young family and the first car together
The Bauer family, two parents with a small child, have finally fulfilled their dream of owning their first car. The joy is huge, but with it comes the question: which car insurance is best for us as a family?
Clearly, third party liability insurance is required by law – there is no discussion about that. However, because it is a newer used car, it would be negligent to rely solely on third-party liability. Fully comprehensive insurance is the right choice here. It not only pays out in the event of theft or hail (which partial cover does), but also covers you if you have an accident yourself.
For a young family, it’s the small but important extras that count. A cover note is worth its weight in gold if you break down on the highway with a child. And discount protection prevents your premiums from exploding for years after a small parking bump.
Farmers should also pay attention to details such as the “extended wildlife damage cover”. This applies to all animals, not just deer and wild boar. Protection against marten bites, including expensive consequential damage, is another detail that makes the difference between a good and a really good insurance policy.
Scenario 3: The loyal driver with skyrocketing premiums
Mr. Schmidt has been driving accident-free for 20 years. Despite this, his car insurance premium has risen sharply in the last year. He is frustrated and no longer understands the world – how can he save money without sacrificing important protection?
What Mr. Schmidt is experiencing is unfortunately not an isolated case. Prices for car insurance in Germany have risen noticeably in recent years. According to the Federal Statistical Office (Destatis), premiums in September were already significantly higher than in the previous year. Surveys confirm this: it has become more expensive for over 60 percent of drivers. If you want to know more about why costs are rising, you can find further insights at datev-magazin.de.
There is only one sensible strategy for Mr. Schmidt: compare! Instead of continuing to fret about his old contract, he should use a comparison calculator like the one from Finanz-Fox. He can simply enter his current data and see at a glance which providers offer him the same or even better cover for much less money. This can often save several hundred euros a year – without having to make a single compromise on benefits.
Find your protection with the Finanz-Fox advantage
“Which insurance is the best?” The search for the answer often feels like an expedition without a map. You are faced with a huge mountain range of tariffs, clauses and providers, and the summit – the perfect protection – seems unattainable. This is exactly where we at Finanz-Fox come in. We are more than just an anonymous comparison calculator. Think of us as your personal mountain guide who knows the way and will guide you safely to your destination.
Our job is to bring light into the darkness where otherwise only technical jargon and small print reign. Our platform does the tedious research work for you. Instead of trawling through countless websites, you enter your requirements just once. With just a few clicks, you will receive a clear, comprehensible overview of suitable offers – whether for your car, liability or household contents insurance.
More than just algorithms
Digital efficiency is a fine thing, but we know from experience that the human factor is irreplaceable when it comes to financial decisions. An algorithm can compare numbers, but it can’t understand your concerns or respond to your personal questions. This is precisely where the decisive Financial Fox advantage lies: the combination of smart technology and personal, human expertise.
Imagine you have two tariffs to choose from that look almost identical on paper. Which one is better for you? This is where our experts come in.
- Personal advice: Our advisors are at your side to clarify precisely such questions. They will translate the often complicated insurance jargon for you and show you where the small but subtle differences are that make all the difference in an emergency.
- Individual solutions: We listen to you. Based on what is important to you, we help you to find the offer that not only fits today, but also provides security tomorrow.
- No sales pressure: We don’t just want to sell you any old policy. Our aim is to advise you so well that you can make a confident and well-informed decision about your protection.
Your trustworthy partner
We do not see ourselves as a mere intermediary, but as your long-term companion on the path to financial security. Good insurance is a fundamental building block for this. It gives you the freedom to shape your life without having to constantly worry about the “what if?”.
The best insurance is the one that gives you the feeling of being truly protected. Our promise is to help you find exactly that insurance – transparent, understandable and without compromise.
Our platform is designed to give you full control, but never leave you alone. If you want, you can do everything completely on your own. But as soon as a question arises or you are unsure, a real person is just a phone call or message away.
This approach makes all the difference. We combine the best of both worlds: the speed and convenience of a digital comparison with the security and trust of a personal consultation. See for yourself and discover the possibilities that Finanz-Fox offers you for your optimal protection offers you.
Your last questions before we start
Even after the best research, a few question marks often remain. This is completely normal, because who can understand the insurance jungle at first go? To help you make a really confident decision, here are a few more answers to the questions we are asked time and again.
See it as a last little help before you find the right protection for you.
How often should I really check my insurance policies?
A good rule of thumb has proven itself: Take a closer look at your policies at least once a year. The end of the year is often a good time, as this is when many new car insurance rates come onto the market, for example.
But even more important than this fixed rhythm are the big changes in your life. A move, a wedding, a new baby or a new job – these are all moments when you should review your contracts immediately. Because your needs can change completely from one day to the next.
Is more expensive insurance automatically better?
A clear no. Price alone is not a seal of quality. Quite the opposite: the most expensive tariffs often include benefits that you don’t need, whereas a cheaper policy with the right modules might be perfect for you.
What really matters is the price-performance ratio. A strong tariff covers exactly the risks that are important to you – and at a fair premium. So always look at the benefits first, not just the bottom line.
What does it actually mean to be underinsured?
Underinsurance is a nasty cost trap that lurks in particular with household contents insurance. Put simply, it occurs when the agreed sum insured is lower than the actual value of your possessions.
If something then happens, the insurer reduces its payment by a percentage. This applies even if the damage itself would easily be covered by the sum insured. An example: Your household contents are worth €80,000, but you have only insured €40,000 (i.e. underinsurance of 50%). In the event of water damage of €10,000, you will only receive half of this amount, i.e. €5,000. Therefore, pay attention to the underinsurance waiver that many tariffs offer if you insure a certain amount per square meter.
Can I cancel an insurance policy just like that?
Unfortunately, it doesn’t work quite that spontaneously, but termination is clearly regulated. Normally, you have an ordinary notice period, which is usually three months before the end of the insurance year. In the case of car insurance, the deadline is often November 30.
However, there is also a special right of termination. This applies, for example, after a claim has been settled or if your provider increases the premiums without improving the benefits. It’s always best to take a look at your contract documents to make sure you don’t miss the deadlines. Sometimes you only find the answer to the question “Which insurance is the best?” when you leave your old contract behind.
Do you now have a clear overview, but would still like some final protection from a professional? At Finanz-Fox, we won’t leave you alone for the last few meters. Compare easy-to-understand offers and get advice from our experts if you need it. This will help you find the protection that really gives you a good feeling.
