Cost of liability insurance: a comprehensive guide for 2025
05/04/25
7
Minutes
Katrin Straub
Managing Director at nextsure
Liability insurance protects against existential risks. But how much does liability insurance really cost? Discover the price ranges and potential savings.
The topic in brief and concise terms
The cost of personal liability insurance for single people often starts at under five euros per month and depends heavily on factors such as the sum insured, excess and the group of people covered.
A cover limit of at least ten million euros is recommended, although higher sums often only incur minor additional costs.
By paying annually, choosing a moderate excess, and comparing tariffs, the cost of liability insurance can be optimised.
Cost overview: Typical price ranges for liability insurance
The cost of private liability insurance is manageable. Affordable policies often start at around €1.50 per month. For single people, annual premiums are often between €30 and €65. Families can expect annual costs from around €50 to €75. Many people underestimate the low monthly cost of this important cover. These price ranges show that comprehensive protection does not have to be expensive.
Factors influencing the amount of your liability insurance premium
Various factors determine how much liability insurance costs. The chosen marital status plays a major role; single policies are usually cheaper than family policies. The sum insured is another key factor; higher sums often mean slightly higher premiums. Agreeing an excess can also reduce the premium by up to 25 per cent. The following aspects are also relevant:
Scope of insured benefits (e.g. loss of keys, internet damage).
Number of co-insured persons, such as children or partners.
Additional modules such as cover for defaulting debtors.
The chosen payment frequency; annual payments are often five to 15 per cent cheaper than monthly ones.
An individual’s life situation has a major influence on the cost. A detailed analysis of these factors helps to find the right and affordable cover.
Optimising your cover amount: How much protection do you need?
The level of cover should be chosen sufficiently high. Experts recommend at least ten million euros for personal injury and property damage. Personal injury claims can quickly result in costs running into the millions. An overly low level of cover can become a financial burden in the event of a claim, as you would have to cover the difference yourself. Policies with a cover limit of 50 million euros already offer very good protection and are often only marginally more expensive. A higher cover limit offers greater security for often only a small additional premium. Consider carefully which benefits your liability insurance should cover.
Excess: Reduce costs through an excess?
An excess can reduce the annual premium of your liability insurance. Typical excesses range between EUR 150 and 300 per claim. With an excess of EUR 150, the saving can, for example, amount to 15 to 25 per cent. However, you have to cover this amount yourself for each claim. Weigh the premium savings against the risk of smaller out-of-pocket payments. For some, such as students on a tight budget, this can be a sensible option. Consider whether the annual costs with excess are right for you.
Understanding tariff groups: Single, Couple and Family
Insurers offer different tariffs for different life situations. Single tariffs are often the cheapest, as only one person is insured, starting at around €30 per year. Couple tariffs, including for unmarried couples in a shared household, often cost from €45 per year. Family tariffs, which include children, are available from around €55 per year and often offer the best value for money per person. Children are often covered until the end of their first qualification. Choosing the right tariff based on your life situation is crucial for the cost. Also check whether your children are covered by liability insurance.
Additional services: Useful add-ons and their costs
In addition to basic cover, various additional benefits can affect the premium. Cover for lost keys is a frequently chosen component and can cover costs of up to 50,000 euros. Uninsured loss cover steps in if you suffer damage and the person responsible cannot pay. Damage caused by children who are not legally liable is another important point for families. Cover for damage caused while helping out can also be worthwhile. Check carefully which additional benefits you really need to avoid unnecessary costs. Some policies even cover damage caused by drones weighing up to five kilograms.
A single person, 25 years old, with no previous damage, can obtain a basic tariff with a sum insured of 15 million euros and an excess of 150 euros for as little as around 3.50 euros per month. A family with children in Berlin, seeking a sum insured of at least five million euros and no excess, pays from around 40 euros per year. A couple without children can expect annual costs from around 40 euros under similar conditions. These examples show that the cover often costs less than a cup of coffee per month. The exact costs of your liability insurance depend on your individual details.
Expert tips for optimising the cost of your liability insurance
To optimise the cost of your liability insurance, there are several levers you can adjust. Our expert tip: compare offers regularly, as rates and conditions can change. Choose annual payment to save up to 15 per cent compared with monthly payments. Check whether an excess of, for example, 150 euros makes sense for you in order to reduce the premium. Bundle your insurances with one provider to potentially benefit from discounts. Pay attention not only to the price, but also to good value for money. A proper liability insurance policy is worth its weight in gold in the event of a claim.
Request an individual risk analysis now: have your insurance situation checked free of charge and receive specific suggestions for optimisation.
More useful links
Wikipedia provides a comprehensive overview of liability insurance in Germany.
The GDV (General Association of the German Insurance Industry) provides statistics on the development of general liability insurance.
Statista offers detailed statistics on premiums and claims in general liability insurance since 2000.
Destatis, the Federal Statistical Office, publishes press releases with relevant data that may also cover insurance or financial topics.
Further statistics from Statista examine the loss ratio in motor third-party liability insurance in Germany.
The portal Laws on the Internet provides access to the Compulsory Insurance Act (PflVG), which contains regulations on motor vehicle liability insurance.
FAQ
How much cover should my liability insurance provide?
Experts recommend a sum insured of at least ten million euros for personal injury, property damage and financial losses. Many policies also offer 50 million euros or more for a small additional premium, providing extra security.
Is liability insurance with an excess cheaper?
Yes, policies with an excess are usually cheaper. For example, if you choose an excess of 150 euros, you can often reduce your annual premium by 15 to 25 per cent. In the event of a claim, you would then pay this amount yourself.
Are my children automatically covered by my liability insurance?
In a family tariff, children are usually co-insured, often until they complete their first vocational training or first university degree, even if they no longer live at home. Check the exact terms of your contract.
What happens if I don’t have liability insurance?
Without liability insurance, you are liable for any damage caused without limit using your entire personal assets. In particular in the event of personal injury, this can quickly lead to costs that threaten your very existence.
Can I deduct liability insurance premiums from my taxes?
Yes, contributions to private personal liability insurance can be claimed in your tax return as precautionary expenses. This can reduce your tax burden.
What damages does private liability insurance typically cover?
It covers personal injury, property damage and financial losses that you negligently cause to third parties. These include, for example, damage to rented property (damage to rented items) or damage caused by lost keys, depending on the plan.
