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.
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.
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:
| 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.
A deductible (Selbstbeteiligung) is the amount you pay before insurance kicks in. Higher deductibles = lower premiums.
This works well if:
Example: Raising your car insurance deductible from €150 to €500 could save €100+ annually.
If you drive infrequently, pay-per-kilometre (Telematik) car insurance can significantly reduce costs:
Safety improvements can qualify you for discounts:
For your home:
For your car:
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).
Eligibility requirements:
This can save hundreds of euros monthly compared to separate policies.
Your credit rating (Schufa score) can affect insurance premiums. Insurers may view lower scores as higher risk.
To maintain or improve your score:
Insurance needs change. What made sense last year may not be optimal now.
Review triggers:
Annual review checklist:
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.