Private accident insurance in Germany: is it worth it?

Private accident insurance (private Unfallversicherung) pays out in the event of permanent disability caused by an insured accident. Illnesses, the more common cause of a reduced ability to work, are not the core of this product.

In short: Private accident insurance is worth it if permanent injuries from an accident would hit you hard financially and the statutory accident insurance does not apply – that is, in your free time, at home, during sport and on holiday. It does not replace occupational disability insurance (Berufsunfähigkeitsversicherung) because it does not pay for illness. What matters is the basic sum insured, the progression and the disability schedule, not the monthly premium.

What statutory accident insurance does not cover

In Germany, the statutory accident insurance (gesetzliche Unfallversicherung) protects employees, children at nursery and school and students – but only for accidents at work, school or university and on the direct way there (sections 2 and 8 SGB VII). Anything that happens in your free time, at home, during sport or on holiday is not covered. Self-employed people, homemakers and pensioners are usually not covered by statutory accident insurance at all.

Situation	Statutory	Private
Accident at work or on the way to work	Yes	Yes
Accident at nursery, school, university or on the way there	Yes	Yes
Accident in your free time, at home, during sport or on holiday	No	Yes
Self-employed without voluntary cover	No	Yes
Health damage caused by illness	Occupational diseases only	No

Who it makes sense for – and who it matters less for

Usually worth it

• Children: They are only covered by statutory insurance at nursery, school and on the way there, yet they often have accidents while playing and in their free time. A permanent impairment can mean adaptations, therapy and care for decades. More in our guide to starting a family.
• Self-employed people and freelancers: Without voluntary statutory accident insurance they have no accident cover at all – not even at work.
• Homemakers and people without earned income: They usually have no occupational disability insurance to fall back on.
• Older people: Special policies combine the cash benefit with practical help, such as a home emergency call system, shopping or care services after an accident.
• People with accident-prone hobbies: Riding, climbing, cycling or skiing increase the risk. Check that the policy does not exclude your sport.

Usually less important

• If you have good occupational disability insurance, you are already covered for the most important case – losing your ability to work – whether it is caused by an accident or an illness.
• Accident insurance is not a substitute for occupational disability insurance: most reductions in the ability to work are caused by health problems such as mental illness, back problems or cancer.

Use our needs check to see which cover comes first in your situation.

How the disability payout is calculated

The payout is based on three components: the agreed basic sum insured (Grundsumme), the degree of disability (Invaliditätsgrad) assessed by a doctor and the progression, which increases the payout disproportionately for higher degrees of disability.

The disability schedule sets the degree of disability

Fixed percentages apply to the loss or complete loss of function of certain body parts and senses. The model terms of the German Insurance Association (GDV) include, for example:

Body part or sense	Degree of disability
Arm	70 %
Hand	55 %
Thumb	20 %
Leg above the middle of the thigh	70 %
Foot	40 %
Eye	50 %
Hearing in one ear	30 %

Many policies use higher values than the model terms. Comparing the disability schedule (Gliedertaxe) therefore often tells you more about quality than the premium does. For partial impairment, the corresponding share applies; for body parts not listed, the medical assessment decides.

Example: €100,000 basic sum insured with 225 % progression

With a common progression scale, the degree of disability counts once up to 25 %, twice for the share between 25 and 50 % and three times for everything above that. At full disability this adds up to 225 % of the basic sum insured. The exact scale differs from policy to policy.

Degree of disability	Without progression	With 225 % progression
20 % (e.g. thumb)	€20,000	€20,000
40 % (e.g. foot)	€40,000	€55,000
70 % (e.g. arm)	€70,000	€135,000
100 %	€100,000	€225,000

Progression therefore matters most for serious permanent injuries. Minor injuries pay out much the same with or without it. Set the basic sum insured according to what you would need after a serious disability for adaptations, aids and lost income – not according to the premium.

What to check in the policy terms

1. Definition of an accident: An accident is a sudden external event acting on your body that causes you involuntary harm to your health (section 178 VVG). Good policies also include sprains and strains caused by increased physical exertion.
2. Deadlines: Many terms require the disability to occur and be confirmed by a doctor within 15 months of the accident. Better policies allow more time – important because permanent effects often show up late.
3. Contributing illnesses: If pre-existing conditions or wear and tear contributed to the injury, the insurer may reduce the payout. Under the model terms there is no reduction if this share is below 25 %; good policies set a higher threshold.
4. Exclusions: Check whether dangerous sports, disturbances of consciousness or infections after a tick bite are excluded or included.
5. Weigh add-ons carefully: Daily hospital allowance or an accident pension sound attractive but often raise the premium more than they are worth. The disability payout is the core.

What the premium depends on

The price depends mainly on the basic sum insured and progression, your age and your occupation group: people doing physical work are usually placed in a higher risk group than office workers. Children are comparatively cheap to insure. Answer all questions in the application fully and correctly – our guide to the duty of disclosure explains why. Only once the basic sum, progression and disability schedule are fixed is a premium comparison meaningful.