What insurance do I need

Having the right insurance isn’t about stacking up as many policies as possible, it’s about finding cover that suits your everyday life and financial situation. Yet, it’s easy to end up with too much or too little. Some insurance types are fundamental for most people, while others overlap with protections you may already have through your home insurance, credit card, or a membership. Across the EU, only motor third-party liability insurance is legally required. Everything else depends on how you live, what you own, and how vulnerable your finances would be if something goes wrong.

If you own a motor vehicle, third-party liability insurance isn’t optional. You need it from the moment your car is registered for use, and its main purpose is to cover injury to others and damage to their property if you cause an accident. It doesn’t pay for repairs to your own car or motorbike. Driving uninsured can lead to fines and penalties, often enforced by a national fund, and these costs can add up fast. To protect your own vehicle, you’ll need to add comprehensive or partial cover, depending on your car’s age, value, and whether you have a manufacturer’s warranty that covers bodywork.

Home insurance is the next cornerstone for most people. It’s not a legal requirement, but in practice, going without it is risky and often not possible if you’re renting or have a mortgage. Standard home insurance packages usually combine cover for your belongings against fire, burglary, or water damage, liability cover if you accidentally harm someone else, and legal expenses insurance to help with certain disputes. Many policies also include travel insurance for shorter trips, typically up to 45 or 60 days, which can be a lifesaver if you fall ill abroad or your luggage goes missing. For longer stays, riskier activities, or higher cover limits, a separate travel insurance policy may be necessary as medical care and emergency repatriation can be extremely costly otherwise.

Accidental damage cover, sometimes called “all risks,” is a detail that makes a real difference in everyday life. This is what compensates you if you drop your phone or spill water on your laptop. Not all home insurance policies include this, and terms can vary both in the deductible or excess and the maximum payout. The key point is that if your home insurance already offers decent accidental damage cover, you can often skip buying costly extra protection at the checkout when you buy electronics.

Your housing situation also affects what you need to insure. If you rent, you mainly need to protect your personal contents and have liability cover. If you own a flat, you may need additional cover for fixtures, surfaces, or alterations you’re responsible for under your building’s rules, unless your building association already includes this for all residents. Homeowners need buildings insurance to cover the house itself, as a major claim here could be financially devastating.