How to Save on Insurance Costs in Germany: 8 Tips

Living in Germany means having the right insurance coverage—but the costs can add up quickly. Between health insurance, car insurance, liability coverage, and more, it's easy to feel overwhelmed by premiums.

The good news? There are smart, straightforward ways to reduce your costs without sacrificing the protection you need. Here are eight practical strategies.

Understanding Your Insurance Options

Before optimising costs, it helps to understand the main insurance types in Germany:

Insurance Type	German Name	Status
Health insurance	Krankenversicherung	Mandatory
Car insurance	Kfz-Versicherung	Mandatory for vehicle owners
Personal liability	Privathaftpflichtversicherung	Highly recommended
Home contents	Hausratversicherung	Recommended for renters/owners

Understanding which are required and which are optional helps you prioritise and avoid over-insuring.

8 Ways to Save on Insurance

1. Assess Your Actual Needs

The first step to saving money is understanding what coverage you truly need:

Avoid over-insurance: Don't pay for coverage levels beyond what's necessary
Consider your life stage: A single professional needs different coverage than a family with children
Review optional policies: Some insurance (like legal expenses) may not be essential for everyone

Tip: If you're only in Germany for a short period, look for short-term or flexible policies rather than committing to long-term contracts.

2. Bundle Your Policies

Many insurers offer discounts when you combine multiple policies:

Bundle Type	Potential Savings
Health + supplementary dental	5–15%
Car + home contents	5–10%
Multiple family members	Varies

Bundling also simplifies management—one provider, one point of contact.

3. Increase Your Deductible

A deductible (Selbstbeteiligung) is the amount you pay before insurance kicks in. Higher deductibles = lower premiums.

This works well if:

You rarely file claims
You have an emergency fund to cover unexpected costs
You're comfortable with moderate out-of-pocket exposure

Example: Raising your car insurance deductible from €150 to €500 could save €100+ annually.

4. Consider Usage-Based Insurance

If you drive infrequently, pay-per-kilometre (Telematik) car insurance can significantly reduce costs:

You pay a base rate plus a small fee per kilometre driven
Ideal for those driving less than 10,000 km/year
Some policies also reward safe driving behaviour

5. Install Safety Features

Safety improvements can qualify you for discounts:

For your home:

Smoke detectors
Burglar alarms
Security cameras

For your car:

Anti-theft devices
Dash cameras
Advanced driver-assistance systems (ADAS)

Make sure to inform your insurer and provide documentation to claim the discount.

6. Use Family Insurance Where Possible

In public health insurance (GKV), non-working spouses and children can be covered at no additional cost through family insurance (Familienversicherung).

Eligibility requirements:

Family members must earn less than €520/month (2026 mini-job threshold)
They must live with you in Germany

This can save hundreds of euros monthly compared to separate policies.

Not sure how it works? Our experts are here to explain.

7. Maintain Good Financial Standing

Your credit rating (Schufa score) can affect insurance premiums. Insurers may view lower scores as higher risk.

To maintain or improve your score:

Pay bills on time
Reduce outstanding debt
Check your Schufa report regularly for errors

8. Review and Adjust Annually

Insurance needs change. What made sense last year may not be optimal now.

Review triggers:

Marriage or divorce
Birth of a child
Moving to a new home
Career changes
Buying or selling a vehicle

Annual review checklist:

Are you using all the coverage you're paying for?
Have your circumstances changed?
Are there better prices available?
Can you remove unnecessary add-ons?

What to Avoid

Unnecessary add-ons: Optional riders like extended warranties or rental car coverage may not be worth the cost
Minimum coverage when you need more: Saving money today can cost more if you're under-insured when you need to claim
Ignoring contracts: Understand cancellation terms and notice periods to avoid being locked into poor-value policies

The Bottom Line

Saving on insurance in Germany doesn't mean cutting corners—it means making informed choices. By understanding your needs, comparing options, and reviewing regularly, you can protect what matters without overpaying.

At Stay, we help international residents find the right coverage at the right price. If you'd like a review of your current policies, we're here to help.