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.
However, there are several strategies available to save on your insurance without sacrificing the coverage you need. In this article, we will share eight practical tips to help you reduce your insurance costs.
Before optimising costs, it's crucial 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 |
Knowing which types of insurance are mandatory and which are optional helps you prioritize what really matters and avoid paying for coverage you don't need.
The first step to saving money is understanding what coverage you truly need.
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.
Many insurers offer discounts when you combine multiple policies. This not only saves you money, but it also makes your life simpler: one provider, one point of contact.
| Bundle Type | Potential Savings |
|---|---|
| Health + supplementary dental insurance | 5–15% |
| Car + home contents insurance | 5–10% |
| Multiple family members | Varies |
A deductible (Selbstbeteiligung) is the amount you pay before your insurance starts covering costs. Choosing a higher deductible can lower your premiums. This works well if:
Example: Raising your car insurance deductible from €150 to €500 could save you €100+ annually.
If you drive infrequently, pay-per-kilometre (Telematik) car insurance can significantly reduce your costs:
Adding safety measures to your home or car can earn you significant discounts. Some examples include:
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.
In public health insurance (GKV), non-working spouses and children can be covered at no additional cost through family insurance (Familienversicherung).
These are the eligibility requirements:
This can save hundreds of euros monthly compared to separate policies.
Your credit rating in Germany, known as your Schufa score, can influence how much you pay for insurance. It's basically a number that shows insurers how financially reliable you are. A low score can signal higher risk, which might lead to higher premiums.
To maintain or improve your score:
Insurance needs change over time, and what worked last year might not be the best fit today. It's a good idea to review your coverage whenever major life events happen, like getting married or divorced, having a child, moving to a new home, changing jobs, or buying or selling a car.
Ask yourself these questions annually when reviewing your policies:
Saving on insurance in Germany doesn't mean giving up on coverage, it means making informed choices. By understanding your needs, comparing options and reviewing your plans 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.