Are you paying too much for your car insurance in Germany and would like to learn how to save more money? You’re not alone. Many policyholders unknowingly overspend because they don’t explore all the options available.
Fortunately, there are practical ways to reduce your premiums without sacrificing the coverage you need.
In this blog post, I’ll break down the top 7 strategies to help you save money on your car insurance in Germany.
1. Compare Quotes from Multiple Insurers
One of the easiest ways to save money on car insurance in Germany is to compare rates from different providers. Don’t stick with the same company every year without checking the market. Premiums can vary by hundreds of euros depending on the insurer and your personal profile.
For instance, in 2024, Allianz, HUK-COBURG, and AXA were among the most competitive providers for drivers under 30. However, DEVK and LVM offered better rates for families with multiple vehicles.
Using comparison websites like Check24 or Verivox can save you up to 25% annually. Visit these insurance quotes comparison websites every year to see how you can take advantage of the offers.
2. Choose the Right Insurance Type
In Germany, you can choose between three types of car insurance:
- Liability (Haftpflichtversicherung): Mandatory for all vehicles. Covers damages you cause to others.
- Partial Coverage (Teilkasko): Includes liability plus coverage for theft, natural disasters, and animal collisions.
- Comprehensive (Vollkasko): Covers all of the above, plus damage to your own vehicle.
Young or high-risk drivers might benefit from comprehensive coverage. However, if you drive an older car, partial coverage may be enough. This small change can lower your premium significantly.
Related: Third-Party vs Comprehensive Car Insurance in Germany: Which One Should You Choose?
3. Increase Your Deductible (Selbstbeteiligung)
Raising your deductible is another effective way to reduce your car insurance premium in Germany. A higher deductible means you pay more out of pocket in case of a claim, but your monthly premiums go down.
For example, increasing your deductible from €150 to €500 could reduce your yearly premium by up to 20%. Of course, only opt for this if you can afford to cover the higher costs in the event of an accident.
Related: What is the Usual Deductible in German Car Insurance?
4. Pay Annually Instead of Monthly
Many insurers offer discounts if you pay your premium annually instead of monthly. This is because monthly payments involve more administrative work and carry a higher risk of missed payments.
According to a 2023 survey by Finanztip, annual payments can save you between €30 and €80, depending on the insurer and your coverage.
Related: Is Monthly or Annual Car Insurance Payment Better in Germany?
5. Install a Telematics Device
Telematics-based car insurance is gaining popularity in Germany. These policies use a small device or a smartphone app to monitor your driving habits—speed, braking, distance, and more.
Careful drivers can save up to 30% on their premiums with insurers like Allianz BonusDrive or AXA DriveCheck. These programs reward safe behavior and are particularly helpful for young or inexperienced drivers.
6. Bundle Your Policies
Bundling your car insurance with other policies like household contents insurance (Hausratversicherung) or personal liability (Privathaftpflicht) can lead to valuable discounts.
For instance, customers who bundle with HUK-COBURG or Gothaer can receive up to 15% off their premiums. Insurers prefer bundled clients because they are more likely to stay loyal long-term.
7. Avoid Driving Offences
One of the most overlooked ways to save money on car insurance in Germany is by maintaining a clean driving record. Speeding tickets, DUIs, and other violations not only result in fines but also increase your risk profile.
According to the German Federal Motor Transport Authority (KBA), a single speeding ticket can raise your premium by 10-15%. Multiple infractions may even lead to non-renewal by some insurers.
Related: Driving Offences in Germany That Can Increase Your Vehicle Insurance Premium
8. Use No-Claims Discount (Schadenfreiheitsrabatt)
Most German car insurance companies offer a no-claims bonus if you haven’t made a claim in previous years. The more years you remain claim-free, the greater your discount—sometimes up to 80%.
Tip: If you’re new to Germany but had a clean record in another country, bring proof. Some insurers may honor your international history.
9. Choose a Low-Risk Car
The make and model of your car significantly affect your insurance cost. Cars with a low insurance type class (Typklasse) are cheaper to insure.
In 2025, some of the cars with the lowest type classes include:
- VW Polo
- Hyundai i10
- Opel Corsa
- Toyota Aygo
Check your car’s Typklasse before purchasing.
10. Avoid Unnecessary Add-ons
While it may seem wise to go for every extra feature, not all add-ons are necessary. Features like roadside assistance (Schutzbrief), replacement car coverage, or glass coverage can inflate your premium.
Unless these extras provide significant value based on your driving habits, skip them and save money.
Related: What Happens If I Choose a Car Insurance Policy with Garage Binding in Germany?
11. Join a Car-Sharing or Professional Association
Many insurers offer discounted premiums if you’re part of certain clubs or associations. For example, ADAC members (Germany’s automobile club) often get exclusive deals.
Similarly, teachers, doctors, and civil servants often enjoy lower rates due to lower statistical risk. Ask your insurer if you qualify for such discounts.
12. Switch Car Insurance Provider at the Right Time
Most car insurance policies in Germany renew automatically on January 1st. The cancellation deadline is November 30th of the previous year. Use this window to compare policies and make the switch without penalties.
Switching providers at the right time can lead to immediate savings and better coverage. Don’t miss out simply because you forgot the deadline.
Related: How to Switch Car Insurance Providers in Germany Without a Hassle
How a Family in Munich Saved €420 Annually
A family of four living in Munich owned two vehicles and had comprehensive coverage. By comparing quotes, raising their deductible, and bundling with household insurance, they reduced their yearly premium from €1,680 to €1,260.
They also switched from monthly to annual payment, saving an additional €60. These small decisions added up to significant savings without compromising coverage.
Final Thoughts
Car insurance doesn’t have to be a financial burden. With the right strategy and a bit of research, you can reduce your premium while maintaining peace of mind on the road.
By implementing these seven tips, you’re not just saving money—you’re also becoming a more informed and empowered policyholder.
If you’re serious about wanting to save money on car insurance in Germany, start comparing your options today, and don’t hesitate to ask an independent insurance broker for personalized advice.