Accident insurance: Optimise your comprehensive protection against financial consequences of accidents
10 May 2025
3
Minutes
Katrin Straub
CEO at nextsure
An accident happens unexpectedly and can change life from one second to the next. Often, over seventy percent of all accidents occur during leisure time, where legal protection usually doesn't apply. [11] A private accident insurance closes this gap and provides you with financial security.
The topic in brief and concise terms
A private accident insurance provides worldwide coverage around the clock against the financial consequences of accidents, particularly leisure accidents, which account for over seventy percent of all incidents. [11]
The core benefit is the disability payment, the amount of which depends on the sum insured, the scale of benefits, and the progression; a progression of at least 350 percent is often recommended. [4,5]
Self-employed individuals, children, and people without other protection particularly benefit; the accident insurance complements, but does not replace the more comprehensive disability insurance. [8,10,1]
Understanding Accident Insurance: Key Facts for Your Protection
A private accident insurance provides financial protection in the event of permanent physical or mental disabilities following an accident. It offers coverage regardless of whether the accident happens at work, during leisure time, or at home, and this is worldwide, 24 hours a day. [1] The core benefit is a one-time capital payment, known as disability compensation, the amount of which depends on the agreed insurance sum and the degree of disability. This protection is often crucial for young adults and families. In contrast, statutory accident insurance primarily covers workplace accidents, accidents on the direct way to work, and occupational diseases. [2] It is anchored in the Seventh Book of the Social Code (SGB VII) and is provided by the employer. [2] For self-employed individuals, homemakers, retirees, and children in the case of leisure accidents, there is often a gap here that private accident insurance can fill. This gap is significant because, statistically, around eighty percent of all accidents occur in the private sector. [11] Therefore, private insurance becomes an essential component of personal provision. The following section examines the specific benefits in more detail.
Services in detail: What does the accident insurance really cover?
The central benefit of private accident insurance is the disability benefit, a lump-sum payment. Its amount is determined by the sum insured and the degree of disability, which is assessed using the dismemberment schedule. [4] The dismemberment schedule is a table that specifies the percentage of the insurance sum paid out in case of the loss or incapacity of certain body parts or sensory organs. For example, the loss of an arm at the shoulder joint might equal seventy percent disability, an eye fifty percent. [3] With an insurance sum of 100,000 euros, this would correspond to 70,000 euros and 50,000 euros, respectively. Many policies offer progression: Beyond a certain degree of disability (often 25 percent), the benefits increase disproportionately. [5] A progression of 350 percent can increase the payout to 350,000 euros in case of complete disability with a base sum of 100,000 euros. Ensure a sufficiently high base sum and good progression. In addition to the disability benefit, other components can be worthwhile:
Accident pension: A monthly pension from a certain degree of disability (e.g., fifty percent).
Death benefit: A sum for dependents in the event of death due to an accident.
Hospital daily allowance and recuperation allowance: Financial support during hospital stays.
Rescue costs: Covering expenses for search, rescue, or recovery operations, often up to 10,000 euros or more. [10]
Cosmetic surgery: Coverage for medically necessary cosmetic operations after an accident, for example up to 75,000 euros. [10]
Some policies also cover poisoning in children or health damages caused by tick bites. [4] The benefits from accident insurance are diverse. However, not every benefit is suitable for everyone, as the next section shows.
Practical Examples and Costs: The Impact of Accident Insurance
Imagine a hobby craftsman falls off a ladder and sustains a complicated fracture leading to permanent mobility limitations in the leg. The doctors determine a disability degree of twenty percent. With an insurance sum of 150,000 euros without progression, the accident insurance would pay 30,000 euros. With a progression of 225 percent, the benefit could already be higher, depending on the tier. Another example: A child has an accident while playing that results in a fifty percent degree of disability. With a child's disability sum of 100,000 euros and 350 percent progression, up to 350,000 euros (in case of full disability) or proportionally in case of partial disability could be disbursed, plus possibly an accident pension. [4] The costs of private accident insurance vary greatly. For an adult (forty years old) with an insurance sum of 150,000 euros, 500 percent progression, and a death benefit of 10,000 euros, the monthly contributions often range between seven and 22 euros. [7] For children, good coverage (e.g., 100,000 euros basic sum, 350 percent progression) can already be available from about three euros monthly. [10] Don't just compare the price, but above all the conditions such as the schedule of benefits and progression. The costs of accident insurance also depend on individual factors such as profession and hobbies. Skiing, for instance, causes average accident costs of 7,900 euros per damage case. [,3] The exact contract details are crucial, as we'll see in the expert section.
Expert Knowledge: Legal Foundations, Judgments and Pitfalls
The statutory accident insurance is regulated in the Seventh Book of the Social Code (SGB VII). [2] For private accident insurance, the Insurance Contract Act (VVG) is decisive, supplemented by the General Accident Insurance Conditions (AUB) of the respective insurer. These AUB precisely define what is considered an accident: "An accident occurs when the insured person suffers health damage involuntarily due to a sudden event affecting their body from the outside." [3] Our expert tip: Report an accident to your insurance company immediately and strictly adhere to all deadlines for medical certificates and the assertion of disability. The Higher Regional Court of Saarbrücken ruled in October 2023 (Case No.: 5 U 41/23) that missing a deadline can eliminate the entitlement to benefits, even without the insured's fault. [9] Another ruling by the Higher Regional Court of Karlsruhe in May 2024 (Case No.: 12 U 175/23) confirmed the exclusion of benefits for accidents caused by mentally induced suicide attempts, where free will was impaired. [9] Common exclusions involve accidents under the influence of alcohol (usually from 1.1 per mille), drugs, participation in racing events, or due to mental and consciousness disturbances. Psychological reactions to an accident are often only insured if they have an organic cause. [3] Since a change in the law in 2021, routes to the toilet or kitchen in the home office are also covered under statutory accident insurance, as well as routes to childcare. [6] For self-employed individuals who are not automatically insured by law, private accident insurance is particularly important; a basic sum of at least 200,000 euros is recommended here. [8] Thorough examination of the insurance conditions is essential. Now the question arises, for whom is such insurance particularly worthwhile.
Target audience in focus: Who particularly benefits from accident insurance?
A private accident insurance policy does not hold the same level of importance for everyone, but certain groups benefit greatly. Self-employed individuals and freelancers often lack statutory accident cover and should definitely secure themselves privately against the risk of income loss due to an accident. [8] For them, an accident can quickly become threatening to their existence, as their work capacity is their main source of income. A sum insured of at least €200,000 is advisable here. [8] Children are another key target group. While they are legally insured at kindergarten, school, and on direct routes there, most accidents – about ninety percent – happen during leisure time or at home. [10] A child accident insurance policy with a sum starting at €75,000 and a progression of at least 350 percent is recommended. [4] Housewives and househusbands, as well as retirees, are often not covered by statutory accident insurance and can benefit from a private policy. [3] People with dangerous hobbies (e.g., extreme sports enthusiasts, motorcyclists) or professions with high accident risks should review their insurance cover and adjust it as necessary. For individuals who cannot take out disability insurance due to pre-existing conditions, accident insurance can serve as an alternative, albeit a limited one. It only provides benefits in cases of accident-induced disability, not due to illness. [1] Over eighty percent of all accidents occur during leisure time, so private coverage is a sensible addition for many. [11] The decision to opt for accident insurance should always be based on an individual needs analysis.
Accident Insurance vs. Occupational Disability Insurance: Making the Right Choice
Often, the question arises as to whether accident insurance or occupational disability insurance (BU) is the better choice. Both types of insurance are valid but cover different risks. Accident insurance, as the name suggests, only provides benefits following an accident that results in permanent disability. Occupational disability insurance, on the other hand, pays a pension if you are unable to perform your job for health reasons—whether due to an accident or, more commonly, due to illness—for at least six months to a degree of fifty percent or more. Statistics show that illnesses (e.g., mental illnesses, cancer, musculoskeletal disorders) are the cause of occupational disability in about nine out of ten cases, with accidents accounting for only around ten percent of cases. [1] Occupational disability insurance therefore offers more comprehensive protection for your ability to work. The premiums for a BU are generally higher than for accident insurance, and the health examination is more stringent. Accident insurance can be a sensible supplement to BU but not a replacement. For example, it can cover high one-off costs after an accident (e.g., for modifications). For individuals who cannot obtain a BU (e.g., due to pre-existing conditions or high-risk occupations), accident insurance can at least cover accident risks. An assessment of your personal risks is crucial here. Carefully evaluate your individual needs.
Tax aspects and other tips: What you should know
Contributions to private accident insurance can be tax-deductible under certain conditions. The professional portion of the insurance, if present and verifiable (e.g., in the case of pure occupational accident insurance or a distinguishable portion), can be claimed as business expenses or advertising costs. The private portion can be stated in the 'Other Provision Expenses' section of the tax return. [4] However, the maximum limits for provision expenses must be observed (1,900 euros for employees and civil servants, 2,800 euros for self-employed individuals), which are often already exhausted by health and nursing care insurance contributions. [4] Our Expert Tip: Regularly review your policy, approximately every three to five years, or during major life changes (marriage, children, building a house, changing jobs) and adjust the coverage if necessary. A contract with dynamics ensures that the insurance sum and contributions rise annually to compensate for inflation. This can be sensible to maintain the value of the coverage in the long term. Be aware of the notice periods, usually three months before the end of the contract term. A tax advantage could influence your decision. With this information, you are well-equipped to optimise your coverage.
Your next step towards optimal protection
More useful links
Deutsche Gesetzliche Unfallversicherung (DGUV) provides comprehensive information on statistics and facts related to occupational and commuting accidents.
The Federal Statistical Office (Destatis) offers detailed data and information on traffic accidents in Germany.
The Federal Ministry of Labour and Social Affairs (BMAS) provides information on the Seventh Book of the Social Code (SGB VII), which regulates statutory accident insurance.
The Federal Institute for Occupational Safety and Health (BAuA) offers valuable information and resources for the prevention of workplace accidents and health hazards.
Wikipedia provides a general overview on the topic of accident insurance.
The Deutsche Gesetzliche Unfallversicherung (DGUV) explains the various rehabilitation services provided after an occupational accident or disease.
The Accident Research of Insurers (UDV) publishes current research reports and studies aimed at improving traffic safety.
The German Medical Association provides information on the assessment and evaluation of injuries.
The Accident Atlas of the Statistics Portal offers interactive maps and detailed statistics on accident events in Germany.
FAQ
What should the sum insured be for an accident insurance policy?
The ideal sum insured depends on your life situation. For self-employed individuals, at least 200,000 euros is recommended. [8] For children, often from 75,000 to 100,000 euros. [4] It is also important to have a high progression (e.g., 350 percent or 500 percent), as this multiplies the benefit in cases of severe disability.
What does sum insurance and progression mean?
The impairment rating table is a chart that specifies the degree of disability (in percent) applied in the event of loss or dysfunction of body parts or senses. [4] Progression increases the insurance benefit disproportionately at higher degrees of disability, often starting from 25 percent disability. [5]
Which additional benefits are important in an accident insurance?
Relevant additional benefits can include an accident pension (from 50 percent disability), death benefits, hospital daily allowance, convalescence benefits, as well as coverage of rescue costs and expenses for cosmetic operations. [4,10]
Does accident insurance also apply when working from home?
The statutory accident insurance was expanded in 2021 and now also covers certain routes while working from home, such as to the kitchen or bathroom, as well as routes to childcare. [6] Private accident insurance, on the other hand, provides coverage regardless of the accident location.
Can I deduct contributions to accident insurance from my taxes?
Yes, private shares can be claimed as other deductible expenses, professional shares as advertising costs/business expenses. However, the maximum amounts are often exhausted by health/care insurance. [4]
Do I need accident insurance despite having disability insurance?
An accident insurance policy can sensibly complement an occupational disability insurance (BU), but it cannot replace it. The BU provides benefits in the event of occupational disability due to illness (the most common cause) and accidents, whereas accident insurance only covers disability caused by accidents. [1]
