Liability insurance through parents: when children are covered and when they need their own policy
18.05.25
5
Minutes
Katrin Straub
Managing Director at nextsure
Are your children still covered by your liability insurance? Many parents are unsure how long family liability cover really applies to their children and when the time comes for them to get their own policy. This article answers the key questions and shows what you need to look out for in order to avoid costly gaps in cover.
The topic in brief and concise terms
Children are generally covered under their parents' liability insurance until the end of their first vocational training or first degree, often up to a maximum age of 25.
A child’s marriage or entering full-time employment ends coverage under their parents’ policy.
Children lacking legal capacity to be liable in tort (under seven years old, under ten in road traffic) are not liable, unless the parents have breached their duty of supervision; good policies still cover such damage.
Quick overview: Key facts about liability cover through parents
The co-insurance of children in their parents’ liability insurance is an important component of family protection. Underage children are generally covered under their parents’ family liability insurance. Specific conditions apply for adult children, often until the end of their first vocational training or first degree course. A child’s marriage almost always ends the co-insurance under the parents’ policy. The exact age limits and conditions can vary depending on the insurance contract; often the limit is 25 years. It is essential to check the details of your own policy carefully.
Basics clarified: Who is covered under family liability insurance?
A family liability insurance policy generally covers the policyholder, the spouse or registered civil partner, as well as the children. Unmarried partners living in the same household can also often be insured. Minor children are generally included as long as they live in their parents' household. For adult children, extended rules apply, which are often linked to their education status. It is important to know what you need liability insurance for in order to understand the extent of the cover. The exact definitions of who counts as a child covered by the policy can vary slightly between providers, so it is worth checking the insurance terms and conditions. This creates clarity about the cover status of each family member.
Age limits and education: When does co-insurance end?
Cover for adult children under their parents' liability insurance is usually linked to their first vocational training. This means that during school, an apprenticeship or the first degree course (Bachelor's and often also a directly subsequent Master's), cover generally continues. Many insurers set an age limit, for example 25 or 27, even if the training is still ongoing. A second degree or a second vocational training course often causes the cover through the parents to lapse. Entry into permanent working life or a traineeship also ends the co-insurance. A child's marriage is likewise a clear reason for the liability cover through the parents to end. If anything is unclear or there are special training pathways, it is advisable to contact the insurer at an early stage. This helps avoid unwelcome surprises in the event of a claim.
The following situations typically bring the co-insurance to an end:
Completion of the first vocational training or degree course and taking up employment.
Starting a second training course or second degree programme after the first degree/training has already been completed.
The child's marriage.
Reaching an age limit set out in the policy (e.g. 25 years), even while training is ongoing.
Taking up permanent, fully paid employment (not just part-time jobs).
These points show that the transition can be gradual and that a careful review of your own policy is essential.
Special cases at a glance: What applies in the case of waiting periods, stays abroad and voluntary service?
Not every career path follows a straight line. What happens to insurance cover during waiting periods between school and training or university? Many insurers cover such transition periods, often for up to a year. Protection under the parents’ liability insurance often continues during a voluntary social year (FSJ), voluntary ecological year (FÖJ) or Federal Voluntary Service (BFD). Extra care is needed for stays abroad, such as a student exchange or Work & Travel: here, it must be checked carefully whether and for how long the insurance cover applies; some policies cover this for a maximum of one year. Our expert tip: Always clarify longer stays abroad or unusual training paths directly with your insurer to avoid gaps in cover. For private liability insurance for children abroad, special conditions often apply. The question of how long children are covered by liability insurance depends heavily on these details.
Expert knowledge: Legal foundations and incapacity to commit an offence
Liability for damage is regulated in the German Civil Code (BGB), in particular in Section 823 BGB (obligation to compensate for damage). However, there are special rules for children regarding tort capacity. Children under the age of seven are generally not capable of tort (§ 828 para. 1 BGB). This means they cannot be held liable for damage they cause. In road traffic, this limit applies even until the age of ten is completed, provided the damage was not caused intentionally (§ 828 para. 2 BGB). Parents are only liable for their children who are not capable of tort if they have breached their duty of supervision (§ 832 BGB). Many modern liability insurance policies, however, include a clause for damage caused by children who are not capable of tort, in order to preserve good relations with those harmed, even if the parents have no legal liability. The coverage limits for this can vary, for example up to 50,000 euros or more. It is advisable to check for this inclusion in the policy. The question, are children automatically covered by liability insurance, can therefore be answered with yes if a family policy exists, but the liability rules are complex.
Optimising policy details: what should you look out for in family liability insurance?
When selecting or reviewing family liability insurance, you should pay attention to several important points. A sufficiently high sum insured is essential; experts recommend at least ten million euros, preferably 50 million euros as a lump sum for personal injury, property damage and financial loss. [5,2] Make sure cover is included for damage caused by children incapable of liability, ideally with a sum insured of at least 50,000 euros. [4,6] Other important inclusions can be: loss of keys (private and business), claims default cover (if you suffer damage and the person responsible cannot pay), and damage caused by acts of courtesy (e.g. helping someone move). [5,4] Our expert tip: Check whether rental property damage to movable items (e.g. in holiday apartments) and internet damage (e.g. through data transmission) are also covered. [2,2] A comparison of different tariffs can be worthwhile in order to find the best protection for your family. The conditions for including children, especially adult children in education or training, should be clearly and understandably formulated.
Important additional benefits can include:
Default cover: Pays if a third party causes you damage but cannot pay and has no liability insurance of their own. [4]
Damage caused by children incapable of liability: Covers costs even without the parents' legal liability. [4]
Loss of other people's private and business keys: Can cover costly replacement of locking systems. [2]
Damage to borrowed and rented items: Important if you often use things from friends or relatives. [6]
Internet damage: Cover for risks in the digital world. [2]
Worldwide cover abroad: Should apply to holidays and temporary stays. [2]
This list shows that the devil is often in the detail and that a careful review of the policy terms and conditions is necessary.
At the latest when they enter working life after completing their first vocational training or degree, young adults need their own private liability insurance. [3,4] Marriage also inevitably creates the need for an individual policy, as cover under their parents’ policy then ends. If the adult child moves out of the parental home and has already completed their training, separate insurance is also required. [5] Our expert tip: Even during legal traineeship or when starting a second qualification, separate liability cover is often needed, as this no longer counts as initial training and is often associated with one’s own income. [1,4] The cost of a personal liability insurance policy for young adults is manageable, often available from around 35 to 60 euros per year. [4] It is a small price for important protection against potentially ruinous compensation claims. The question of when personal liability insurance makes sense can therefore be answered clearly. The transition to your own cover is an important step.
Review your individual situation: we can help you further
The arrangements for co-insuring family members under liability insurance can be complex and depend on many individual factors. To ensure that your family, and especially your children, are optimally protected, a thorough review of your current policy and your children’s living situation is essential. A liability claim within the family is usually not covered, but damage involving third parties can quickly become expensive. Do not hesitate to seek professional support to avoid gaps in cover and find the right protection. Request your individual risk analysis now: have your insurance situation reviewed free of charge and receive specific optimisation suggestions.
More useful links
Wikipedia provides a comprehensive overview of liability insurance.
The Federal Ministry of Justice provides the exact wording of Section 832 of the German Civil Code (BGB) on the liability of the person with supervisory responsibility.
Finanztip offers a detailed article on liability insurance for children.
The Handelsblatt looks at in an article when children are covered under family liability insurance and when they are not.
FAQ
Up to what age are children co-insured under family liability insurance?
Minor children are always co-insured. Adult children are generally covered during their first school and vocational training (e.g. apprenticeship, bachelor’s degree and subsequent master’s programme). Many insurers have a maximum age limit, often 25 years.
What counts as initial vocational training for liability insurance?
An apprenticeship, a bachelor’s degree and often also a master’s degree that follows directly on from it are generally considered a first vocational qualification. A second degree or a second apprenticeship after an educational programme already completed usually no longer count as such.
Do I need my own liability insurance if I move out of home?
Moving out alone does not necessarily end co-insurance, as long as you are still in initial training and the other conditions (age, marital status) are met. However, once training has been completed and you are in employment, your own policy is required. [2,5]
What happens if my child causes damage during a voluntary social year or federal voluntary service?
In many cases, the cover provided by the parents’ liability insurance also continues during a Voluntary Social Year (FSJ), Voluntary Ecological Year (FÖJ) or Federal Voluntary Service (BFD). It is advisable to clarify this with the insurer on a case-by-case basis.
Are parents always liable for damage caused by their children?
No. Children under seven are not legally liable (under ten in road traffic). Parents are only liable if they have breached their duty of supervision. However, many liability insurance policies voluntarily also cover damage caused by children who are not legally liable.
How much does a personal liability insurance policy for young adults cost?
A good personal liability insurance policy for young adults is often available for an annual premium of between 35 and 70 euros. The exact costs depend on the chosen plan and scope of cover. [4]
