Hi All,
So I wrote back while when I read that in Switzerland people are having unnecessary insurances which they don’t even need,
Any inputs on what is needed and what is not?
Recently I was approached by insurances to get insurance for lawyer, car, any other damages etc etc which I am evaluating now…
i would appreciate if you can shed some light on the what you will consider damn important and what is just wasting money…
thank you
Mona
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You need personal liability insurance. Apart from that I only have the mandatory insurances. I don’t have Hausratsversicherung as I don’t own anything I can’t cover myself.
Of course it depends on your situation.
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Maybe my article might help you:
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There is a mistake in your guide. Private liability insurance is actually not mandatory in Switzerland. Except if you own a dog in some cantons (and maybe some other cases).
Though personnally, I would recommend everyone to have one, except if having about 10 MCHF to your name maybe.
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You hit someone skiing, he gets physically impaired and he is the sole earner of the family → you are liable for his salary. Sure, it is not gonna all come at once, but it is a huge financial risk. Also, it covers in general damages you do to a rental flat…
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Make sure to not underestimate the value of your furniture in your household insurance or in your ECA (specific cantonal insurence company in charge of covering the risk against fire and natural hazards).
In case of a fire for example, if the experts estimate that you underevaluated your furniture by 50% (to save some few CHF on your yearly premium) you will be charged 50% of all the costs generated by the cleaning operation, rellocation and so forth. Not sure about the % and what can be at your charge, but do not be underinsured on that risk.
See at the bottom of the page here.
The private liability insurance is also important if you have a bicycle as there is no longer a separate liability insurance for that.
thank you for your reply. It does help a lot.
I would absolutely recommend one if you ride a bicycle.
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This is a must. It’s even more important than health insurance IMO.
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Yes, and not to forget: It also acts as a legal insurance, if somebody wants to sue you and the disputed matter falls under the insurance policy.
I’d rather expect, without knowing any statistics, that the problem in many cases is less unneeded insurance policies but rather multiple policies for the same things. How many people might have roadside assistance through their car insurance and a TCS membership? Separate travel assistance for things covered through the credit card? Or legal insurance to protect them against being sued, while most cases are already covered by liability insurance.
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Thanks for bringing this one up.
I know I took it out at some point, but can’t remember exactly why (
might have been when I started leasing the car; no longer the case).
So, in which case would it make sense to have / take out one?
Only if you are getting ready to initiate a legal dispute?
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In my opinion, get as little insurance as possible.
- Personal liability insurance has paid off for me because i rent, but the chances of having a major liability case opened against you are much smaller.
- Legal insurance only if you have good reason to believe you may become tangled in an expensive legal case e.g. if you own property. I’ve never had it and never needed it.
- Supplemental health insurance has paid off for the kids because of dental/orthodontic cover and unlimited medical checkups. I wouldn’t see it as necessary for myself though.
- Term life insurance makes sense for me because I have a big family. But you already have survivors insurance from the OASI, your pension fund, and accident insurance, so this one is more of a luxury, and pointless if you don’t have dependents.
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I took one when I left a previous employer with a non-compete agreement. In my opinion, legal protection policies are worth it if you want to protect yourself against your employer (you have a job with responsibilities and they could try to turn on you and wash their own hands in case of trouble, or could try to fire you with cause for no real good reason) or your landlord (outside of the scope that would be covered by a liability policy, so actions initiated by the landlord themselves like rent changes, works they are wanting to do in your unit or lease cancellation without your agreement).
It’s basically a way to give yourself the means to fight the actions of others with negative impact toward you, provided the field they’re related to falls in the scope of the policy. It’s not really a way to go to court and win your case, the insurance will defend the cheapest option that still protects your interests so they may choose to go for an agreement where they pay something rather than going to court if that’s cheaper than the later. Going to court is a time and nerve consuming experience, even when you’re undeniably in the right so I don’t blame them for that.
I’d take one at the start of one’s career and keep it until one’s able to pay for their own litigation costs. Trouble with the employer may mean you don’t have a salary anymore when you’re fighting (because the subject of the litigation is unwarranted fireing, with potential seizure of salary/bonus by the now former employer) while trouble with the landlord may mean you now don’t have a roof anymore. Both are low probability, high impact scenarios with high costs to cover for it from your own pocket.
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Thanks for the detailed reply.
So it indeed sounds like something (most) everyone should consider having.
I don’t read that sentiment around here and on linked resources. 
I would generally say: If you have to sue somebody to defend your rights. Luckily, I’ve never been in that situation, but @Wolverine’s examples make very much sense.
Not everything that’s mustachian works for all of us. It really depends. If you think you need such an insurance policy, just get yourself one. Notice that some policies have blocking periods for some topics, though.
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I wouldn’t say that, it’s a fairly expensive insurance. If you’re a waiter or self-employed, it probably doesn’t make that much sense. The personal liability is the only non-mandatory insurance that I’d very strongly recommand to everybody.
I’d say legal insurance really only becomes very useful if you’re employed and have important responsabilities, which I guess most of us probably do. There’s also a point where self-insuring probably becomes the better option.
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A bit related to insurance topic, I am about to shop for a new Bluetooth speaker on Galaxus.ch.
They offer a warranty extension for 3 additional years for 11,5% of the retail price.
I neved used it before but as it is for a gift I thought it could be useful if it breaks after 3 years of use (battery or other electronic fault).
Did anyone on the forum bought one and used it ?
I’ve never bought something with an additional insurance. However, with my neon Q, whatever I purchased on QoQa with my neon account, I’ve get 3 years of warranty for free.
In reality, I don’t know if it is really usefull, this is why I don’t extend it when a website offer it.