Own liability insurance: When is it really necessary to switch?
14/04/25
5
Minutes
Katrin Straub
Managing Director at nextsure
Many young people ask themselves: when do I need my own personal liability insurance? The answer is not always straightforward, because it depends on your training, living situation and marital status. This article explains and shows when parental cover ends.
The topic in brief and concise terms
Personal liability insurance is usually required after initial training or a first degree.
Marriage or entering working life usually ends co-insurance under the parents.
Please check the terms of the parents' policy and the sum insured carefully.
Quick overview: When does family insurance end?
Most young adults are initially covered by their parents’ family liability insurance. This cover typically ends when they complete their first vocational training or first degree. A master’s degree straight after a bachelor’s degree often still counts as part of initial education. By the time they enter working life, taking out their own policy is usually unavoidable. However, there are some exceptions and details to bear in mind that can affect the timing.
Training and studies: mastering the transition phase
During initial vocational training or a first degree, insurance cover is usually provided through the parents. This also applies if students no longer live at home. Many insurers provide an age limit, often up to the age of 25, for inclusion under a family policy in health insurance, although this does not apply directly to liability cover. Check the exact terms in your parents' policy. Private liability insurance for children in training is an important topic. The following situations often require separate liability cover:
Completion of a second training programme or a second degree.
Marriage during training or studies.
Starting regular employment after training.
Exceeding specific age limits under the parents' tariff (rare, but possible).
Switching to your own private liability insurance is then usually the right decision. The question of how long children remain covered depends on these factors.
Starting a career and forging your own path: now it’s getting serious
With your first permanent job after training or university, cover under your parents’ policy definitely comes to an end. From that point on, you are personally responsible for any damage you cause and need your own liability insurance. Anyone who has already completed vocational training before starting university often needs their own cover earlier as well. A policy of your own often costs just a few euros a month. The need for liability insurance is beyond dispute. Bear in mind that damages can quickly run into six- or seven-figure sums.
Special cases and details: What is often overlooked
There are circumstances that require special attention. These include, for example, stays abroad or internships. Find out in advance whether the parents’ policy applies here or whether additional insurance is necessary. Coverage under the parents’ policy also ends in the event of marriage, even if training has not yet been completed. Our expert tip: Check the sum insured; it should be at least ten million euros. For certain risks, such as the loss of third-party keys or damage to rented items, there are often specific clauses. The question, whether liability insurance is mandatory, is answered with a no in Germany for private personal liability insurance, but it is nonetheless vitally important.
Expert knowledge: Legal foundations and pitfalls
Private liability insurance is not mandatory in Germany, but it is still one of the most important forms of cover. Anyone who causes damage to another person is liable for it under Section 823 of the German Civil Code (BGB) with their entire assets. Liability insurance checks claims for damages and rejects unjustified claims (passive legal protection). Look out for clauses such as cover in the event of default. This applies if you suffer damage, but the person responsible cannot pay and has no liability insurance of their own. Liability insurance for mother and child can cover specific needs. Here are some points to consider:
Sum insured: at least ten million euros, preferably 50 million euros.
Excess: can reduce the premium, but consider whether you want to cover minor claims yourself.
Children incapable of legal fault: are damages caused by children under seven covered?
Voluntary assistance damages: damage caused when helping without payment (e.g. moving house).
Loss of keys: the cost of replacing locking systems can be considerable.
The costs of liability insurance are low compared with the potential damage. A claim can affect the premium, but that is better than financial ruin.
The right time for your own liability insurance
In summary, the transition to your own liability insurance is an important step. For most young people, this becomes relevant after their first vocational training or degree. Reviewing your parents' policy often provides an initial indication. You should have your own cover in place by the time you receive your first salary at the latest. Please remember that lacking liability cover can be existentially threatening in an emergency. nextsure offers you comprehensive and easy-to-understand insurance solutions as a digital insurance portal.
Request an individual risk analysis now: Have your insurance situation checked free of charge and receive concrete suggestions for optimisation.
More useful links
Wikipedia provides a comprehensive overview of liability insurance.
The Federal Ministry of Justice provides the legal text of the Compulsory Insurance Act.
The Lower Saxony Consumer Advice Centre offers consumer information on the need for private liability insurance.
The NDR explains which liability insurance policies are sensible and necessary.
FAQ
When exactly does the co-insurance under family liability insurance end?
Co-insurance typically ends upon completion of the first vocational training (apprenticeship or university degree), on marriage, or when taking up permanent employment. A master's degree directly after a bachelor's degree is often still considered initial training.
Is personal liability insurance expensive?
No, a good private liability insurance policy is already available for a small annual premium, often under one hundred euros. The cost is very low compared with potential claim amounts.
What does private liability insurance cover?
It covers personal injury, property damage and financial losses that you negligently cause to third parties. It also defends against unjustified claims.
Do I need my own liability insurance as a student with a part-time job?
As long as you are in initial training and the part-time job does not constitute regular employment, you are usually still insured through your parents. However, please clarify this with the insurer.
What if I cancel an apprenticeship and start a new one?
This depends on the insurer’s goodwill and the exact terms and conditions. Often, cover is granted for the entire first completed vocational training course. However, a change may be considered a second qualification.
Are internships during your studies also covered by insurance?
Compulsory internships as part of your studies are often covered by your parents' liability insurance. For voluntary or paid internships, you should check the terms and conditions or contact the insurer.
