What is Haftpflichtversicherung, and what does it cover?

If you cause an accident in Germany, you can be sued by the victim. If the victim wins, you will have to pay reparations1. A lawsuit like that can easily ruin you.

Liability insurance (Haftpflichtversicherung) protects you from these damage claims. If you cause an accident, your insurance company will pay the legal fees and the reparations.

For more details, see this guide.