Reports Trends

Exploring Consumer Demand for Product Protection in Germany [Cover Genius Report]

Exploring Consumer Demand for Product Protection in Germany [Cover Genius Report]

Have you ever stopped to consider how much your own shopping preferences have evolved, especially when it comes to ensuring your purchases are protected? Well, the retail industry is evolving, and with it, the expectations of consumers. Also, many of us are starting to weigh the benefits of product protection plans more seriously.

This is where the latest findings from Cover Genius become truly fascinating. Their January 2024 survey of 600 consumers in Germany reveals some compelling insights into what people really want from their retailers, manufacturers, and payment apps when it comes to safeguarding their purchases. 

The best part is that this report not only highlights the demand for integrated product protection but also sheds light on how much consumers are willing to pay for that extra peace of mind. 

So, ready to dive deeper into these insights and discover what they mean for the future of retail? Keep reading!

Consumer Attitudes Towards Product Protection

What do people really think about product protection? Are they just another tick on the checkout page, or is there a genuine interest in safeguarding their purchases? A significant majority of consumers are actively seeking ways to add a layer of security to their shopping experiences. 

So, why do they value product protection so highly? Could it be the convenience, the fear of loss, or simply the desire for peace of mind? Let’s unpack the findings.

Demand for Integrated Product Protection

A significant portion of German consumers (73%) expressed interest in purchasing product protection directly from their favorite retailers, manufacturers, and payment apps. The survey highlighted that the convenience of such offerings at checkout or post-purchase is a major driving force behind this demand.

Source: Consumer insights and key takeaways for retailers, Cover Genius report.

Willingness to Pay a Premium

Consumers are not just looking for product protection – they are also willing to pay more for it. The survey found that on average, consumers are ready to pay an additional 19% for products if their protection is included. This opens up new revenue opportunities for retailers by potentially increasing the average transaction value.

Source: Consumer insights and key takeaways for retailers, Cover Genius report.

The Need for Different Protection Types and Categories

Interestingly, 59% of consumers would be more likely to purchase protection if it was bundled with other protection. The types of product protection most sought after include extended warranties, damage protection, and theft or loss coverage. 

Notably, personal electronics is the top category for which consumers desire product protection. This suggests a targeted approach for retailers in these sectors to offer tailored protection plans. 

Source: Consumer insights and key takeaways for retailers, Cover Genius report.

Consumer Preferences and Behaviors

Now that we’ve explored the broad attitudes toward product protection, let’s zoom in a bit. How exactly do consumers prefer their product protection to be served? Is convenience the only big player, or are there other elements at play? And when consumers decide to go for product protection, what are they really looking for?

Let’s dissect these nuances to understand better what makes the shoppers tick when they’re faced with the option of adding a protection plan to their purchases.

Motivations for Purchasing Product Protection

As we have said before, convenience was the primary factor, with 53% of respondents highlighting it as a key motivator. This was followed by cost considerations and other factors such as brand familiarity and loyalty program enrolment. So, no, convenience isn’t the only factor that drives consumer choices.

Source: Consumer insights and key takeaways for retailers, Cover Genius report.

Impact of Claims Experience

The report also emphasized the importance of a positive claims experience. A remarkable 84% of respondents stated they would recommend a brand with which they had a positive experience regarding claims handling. This indicates that efficient and satisfactory claims processing can significantly enhance customer loyalty and brand reputation.

The Popularity of Extended Warranty

What’s more, the extended warranty is the most frequently purchased protection product by consumers (53%.) Why is that? Because they are afraid of potential repair and replacement costs. But these are not the only motives. Other ones include:

  • Accidental damage protection (13%)
  • Shipping protection (20%)
  • Coverage for theft/cancellation (14%)

Source: Consumer insights and key takeaways for retailers, Cover Genius report.

Business tip: You can use the extended protection option in your e-commerce to attract consumers – especially those who are risk-averse and lack confidence.

Future Preferences

Product protection is not a temporary fad. This is evidenced by the opinions of respondents who say that in the future, they will be interested in buying product protection for various purchases. The most popular categories here? 

  • Personal Electronics (68%)
  • Home Appliances (59%)
  • Luxury Goods (29%.)

Source: Consumer insights and key takeaways for retailers, Cover Genius report.

However, given the higher price and quality, consumers are more interested in buying protection plans that protect more of these expensive items than cheap ones. 

Key Takeaways for Retailers from The Report

Any last words for retailers about consumer demand for product protection in Germany? Here they are:

  1. Enhance customer experience – By integrating product protection into the customer journey, you can enhance the shopping experience and meet consumer expectations for safety and security.
  2. Leverage protection as a differentiator – Offering product protection can distinguish a retailer from competitors who do not provide such options and potentially drive both customer retention and acquisition.
  3. Focus on high-interest categories – Given the strong interest in protection plans for electronics and luxury items, retailers in these markets should consider developing comprehensive protection services tailored to these goods.
  4. Invest in seamless claims handling – As customer satisfaction greatly depends on the claims process, investing in efficient claims handling can lead to higher customer retention and positive word-of-mouth. So, in addition to offering product protection, don’t forget about this area.
  5. Bundle different product protections – If you provide various protections for your products and services, customer trust and satisfaction can increase greatly. Consider, for example, shipping protection, accidental damage, and return protection. Don’t forget extended warranties, too.


The landscape of consumer demand for product protection is rich with opportunity. The above report from Cover Genius provided valuable insights into this topic in an innovative country, Germany. Retailers who tap into these insights can now cater to customer needs, enhance customer satisfaction, and drive significant growth in a competitive market. 

As we saw, these strategies will likely become not just advantageous, but essential. So if you’ve been hesitant about whether or not to offer product protection to customers, now you know the answer.

You can also get inspired by more insights in the full Cover Genius report.

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