“I’m almost 18 and I have no idea about taxes, rent or insurance. But I can write an analysis of a poem. In 4 languages.” With this Twitter message from 2015, the then 17-year-old Naina caused a stir. The high school graduate criticized the fact that the school system did not properly prepare many young people for life, triggering a social debate about the content of the lessons. School is about the Pythagorean theorem and Goethe, but not about finances and insurance.
Young people realize that there are many gaps in these topics when they start their studies at the latest. The new phase of life initially means a major change. Insurance is at the bottom of the list. All students should deal with an important question: What insurance do I need and what is still covered by my parents?
There is often a great deal of uncertainty when it comes to these questions, as the North Rhine-Westphalia consumer advice center knows. “Up to now, young people have often not had to worry about insurance and finances. Mom and Dad have always taken care of health insurance, liability and so on,” says consumer advocate Philipp Opfermann. It has a clear message: Students should be well informed and only take out what is really necessary – but then high-performance tariffs, please.
With many policies, students continue to be insured through their parents
As a rule, students do not need many policies, because most of them are insured in many areas through their parents up to their 25th birthday, including private liability insurance. That is imperative, says Victim. After all, anyone who causes property damage or personal injury is personally liable: If carelessness on the part of a pedestrian or cyclist leads to a traffic accident, the costs for caring for the victims of the accident can reach high sums.
However, there is one exception: Anyone who has already completed an apprenticeship before their studies needs their own liability insurance – like Mats Großmann. The 25-year-old has been a student at Cologne Technical University since 2020. After graduating from school in 2016, he first completed a commercial apprenticeship. Mats has a number of policies for which he pays a total of 1500 euros a year. Since he works as a working student, this sum is not a problem for him, he says. In addition, he is covered by several contracts from his parents.
He also benefits from his parents’ low no-claims class when it comes to car insurance. But why is he so extensively secured, unlike many fellow students? “I had two very drastic experiences in early adulthood, where the insurance helped me a lot,” reports Mats. This included a car accident abroad. A good price-performance ratio, established providers and reliable contacts are important to him. “I don’t need an app, but a person I can communicate with if I have questions.”
Health insurance is compulsory in Germany. Students up to the age of 25 are insured through their parents in the statutory health insurance without paying a fee. The family insurance means that no additional contribution has to be paid. If the parents are privately insured, the student can decide whether to remain in private health insurance during their studies or switch to a statutory health insurance fund. If a student earns more than 520 euros per month, he must insure himself.
What to look out for during a semester abroad
Health insurance is also an important issue when students study abroad for one or more semesters. If the university is in a European country that has a social security agreement with Germany, statutory health insurance applies. “However, the supply is at the level of the host country,” explains consumer advocate Victim Man. He recommends that anyone who wants to close gaps or also insure the medical return transport should also consider international health insurance.
If you are drawn further away, for example to the USA, the statutory health insurance does not apply. Here young people should think about a special private cover, otherwise a treatment can eat up the entire personal budget very quickly.
Disability insurance (BU) is very important and yet often underestimated. “This policy pays a monthly pension and thus secures the student’s livelihood if, after an accident or due to a serious physical or mental illness, he is no longer able to pursue his studies or the associated desired profession,” explains John-Paul Pieper from the insurer Ergo.
With this policy, it is crucial to contract as early as possible. “The contributions are then still low, and access to BU insurance at a young and healthy age is often easily possible,” says consumer advocate Victim Man. This insurance is not cheap, but the money is well invested.
An 18-year-old student of business administration, who pays around 27 euros per month in premiums, would receive a monthly pension of 1,000 euros up to the age of 67 in the event of disability, the comparison portal Check 24 has calculated. Consumer advocates clearly advise against combination products, i.e. coupling BU insurance with classic or unit-linked life and pension insurance. “A BU is recommended, but life and pension insurance are increasingly unattractive as a component of old-age provision,” says Opfermann. “There are often more flexible, simpler and cheaper alternatives.”
Students may also need their own household contents insurance. If they move into a room in a shared flat or a room in a dormitory, the household contents are also insured through the parents. However, a flat share can also take out its own household contents insurance. “This is more likely to be the exception, but makes sense in individual cases,” explains Opfermann. This can be the case if individual roommates are not insured through their parents.
If a student moves into their own apartment, they establish their own household. He is no longer covered by his parents’ household contents policy. Anyone who buys new furniture should definitely think about their own insurance. Finally, this also covers expensive items such as laptops and smartphones. Accident insurance is recommended for students who are active in sports. Pieper from Ergo explains that 70 percent of accidents happen at home or during leisure time, when the statutory protection does not apply.
Student Mats has had disability insurance since he was 18. In addition, he often spoke to his parents about the subject and independently researched which protection is right for him. “In my circle of friends, I’m the one who gets asked for advice when it comes to insurance,” he says.
Young people in particular are often talked into getting insurance that they don’t actually need, he criticizes. “It would just be nice if more was discussed at school,” he says. Insurers should also increasingly rely on social media, such as YouTube, Instagram or Tiktok, so that young people can find information there.