Auto & Mobility
Car Insurance (Liability)
car insurance cheap
Affordable car insurance: Strategies for lower premiums in 2025
The cost of car insurance is rising, but with the right knowledge, you can save significantly. Discover practical tips and expert insights to keep your car insurance premium affordable while still having optimal coverage. This guide shows you how to do it.
The topic in brief and concise terms
An annual payment method and realistic mileage figures can reduce your insurance premium by up to fifteen percent.
Comparing providers and adjusting comprehensive insurance and excess offer savings potential of often several hundred euros.
The no-claims class, type class, and regional class are key factors that significantly influence your car insurance premium and can be optimized.
Quick Facts: Immediate Measures for Affordable Car Insurance
To keep your car insurance premium affordable, even small adjustments can have a big impact. Opting for annual payments can save up to five percent. Also, check your annual mileage; drivers often pay for overestimated kilometers. Reducing from twenty thousand to fifteen thousand kilometers can noticeably lower the cost. Choosing a repair shop agreement can reduce the premium by up to twelve percent.
Many policyholders underestimate the saving potential by adjusting the driver circle. Limit the number of drivers to a minimum to reduce costs. Agreeing to a deductible, for example, one hundred and fifty euros for partial coverage and three hundred euros for comprehensive coverage, has a positive effect on the premium. These initial steps can be implemented quickly and form the basis for further optimizations.
Practical Guide: Actively Reduce Contributions by Choosing the Right Tariff and Vehicle
Choosing the right tariff and vehicle has a significant impact on how affordable your car insurance will be. Compare offers from different insurers, as the price differences can amount to several hundred euros per year. Switching from fully comprehensive to third party, fire and theft insurance might be worthwhile for older vehicles, for example, those older than five years, as the fully comprehensive often only covers the current market value. When buying a car, pay attention to a low insurance group; vehicles in low insurance groups (e.g., group 10 in liability) are often cheaper to insure.
The annual mileage is another important factor. Calculate realistically; reducing it by five thousand kilometers can already mean savings of ten to fifteen percent. Consider whether a telematics tariff is suitable for you. With this, your driving behavior is analyzed, and safe driving can be rewarded with discounts of up to thirty percent. Do not underestimate the influence of the registration district, known as regional class. Moving to an area with a lower claims record can reduce your premium. The following points can help you optimize your tariff:
Opt for annual payment instead of monthly or quarterly (up to five percent savings).
Adjust your deductible (e.g., three hundred euros for fully comprehensive instead of one hundred and fifty euros).
Limit the driver circle (each additional driver can increase the premium by five to ten percent).
Accept repair shop binding (up to twelve percent discount possible).
Give realistic mileage and adjust if necessary (five thousand kilometers less can bring ten percent savings).
Consider telematics tariffs (up to thirty percent discount for safe driving).
These practical approaches allow you to make your car insurance affordable without sacrificing necessary protection. The next step is to optimally utilize your no-claims bonus.
Optimise your no-claims bonus class: Save in the long run
Your no-claims discount class (SF class) is one of the key levers for obtaining a favorable car insurance policy. Each accident-free year results in a better classification and therefore a higher discount. New drivers often start in SF class 0, which comes with high premiums; after an accident-free year, they are classified in SF class half or one. After thirty-five accident-free years, many policyholders reach the highest SF class (e.g., SF 35), which can reduce the contribution rate to around twenty percent of the baseline rate.
There are ways to positively influence the SF class. Transferring the SF class from another person (e.g., parents or grandparents) is possible under certain conditions, although often for only as many years as the recipient has held a driving licence. A discount protection can be beneficial: It prevents a downgrade after the first claim, but comes at an extra cost. Paying for minor damages up to around five hundred euros yourself can be cheaper in the long run than a downgrade in the SF class. Consider these aspects of the SF class:
Check the possibility of an SF class transfer, especially for new drivers.
Consider discount protection if you have many accident-free years (often starting from SF class 4).
For minor damages, calculate whether paying out-of-pocket is cheaper than claiming insurance and facing a subsequent downgrade.
Report changes to your driving habits (e.g., fewer drivers) to potentially improve your classification.
The SF class is a dynamic factor that significantly determines your premium. Next, we'll look at the legal frameworks and expert tips.
Expert knowledge: Understanding legal aspects and contract details
To make your car insurance affordable and legally compliant, it's important to understand the legal framework. The Compulsory Insurance Act (PflVG) stipulates in § 1 that motor vehicle liability insurance is required for every vehicle owner. The minimum coverage amounts are specified in § 4 PflVG, for instance, seven and a half million euros for personal injury. A violation of the insurance obligation can be penalized with fines of up to one hundred and eighty daily rates or imprisonment for up to one year according to § 6 PflVG.
The Insurance Contract Act (VVG) governs the rights and obligations of insurers and policyholders. Particularly relevant for cost savings is § 40 VVG: If the insurer increases the premium without a corresponding improvement in the range of services, you have the right to terminate the contract within one month. Pay attention to the pre-contractual duty of disclosure according to § 19 VVG: False or incomplete information can lead to the insurer being exempt from performance or to an adjustment of the contract. Our expert tip: Review your insurance policy annually for optimization potential, especially before the main due date (usually the first of January). A switch is often possible until the thirtieth of November. Loss of function, damage, or destruction of electronic components of your vehicle are covered by car insurance for electric cars. The settlement of damages should take place within four to six weeks. This knowledge helps you avoid pitfalls and optimally structure your car insurance.
Switching Insurance and Special Termination Rights: Seize the Opportunities
Switching car insurance can offer significant savings, often several hundred euros per year. The most common cancellation date is the 30th of November, as most policies expire at the end of the year. However, there are also situations that allow for a special right to terminate outside this period. This includes a premium increase by the insurer without an improvement in services (§ 40 VVG). Following a settled claim, both you and the insurer have the right to terminate the contract within one month.
Another opportunity for a special termination exists when changing your vehicle. If you buy and register a new car, you can cancel your existing insurance and take out a new, potentially cheaper car insurance. Our expert tip: Compare not only prices but also benefits such as coverage limits, discount protection or foreign damage protection. A careful review of the contract terms is essential to be well protected in case of damage. nextsure is happy to assist you in analyzing your existing contracts and finding an optimal and affordable car insurance.
The following situations often allow for cancellation outside the regular period:
Premium increase without service adjustment (within one month of notification).
After settlement of the claim (within one month).
Sale or deregistration of the vehicle (insurance is transferred to the buyer or ends with deregistration).
Change in the type class or regional class if this leads to a premium increase.
Take advantage of these options to keep your car insurance affordable. An individual consultation can be very helpful in this regard.
Conclusion: Your strategy for a consistently affordable car insurance
Finding and maintaining affordable car insurance requires a mix of knowledge, regular review, and informed decisions. Start with simple adjustments like paying annually and realistically assessing your mileage, which can already save you up to fifteen percent. Use comparison calculators and check policy details such as workshop binding and deductible to save an additional ten to twenty percent. Optimising your no-claims bonus by driving accident-free or taking over a no-claims class can reduce your premium by more than fifty percent in the long term.
Understand the importance of vehicle type and regional classes and take these factors into account when buying a car or moving. The most important thing is to stay proactive: Review your contract annually, use your special termination right in case of premium increases, and don't hesitate to compare offers. Making a careful selection not only ensures you have affordable car insurance but also the right coverage for your needs. Remember, nextsure offers you comprehensive advice and helps you find the optimal insurance solution.
Request an individual risk analysis now: Have your insurance situation checked free of charge and receive concrete optimisation suggestions.
More useful links
Kraftfahrt-Bundesamt offers detailed statistics on the vehicle population in Germany.
Statistisches Bundesamt provides comprehensive information on traffic accidents in Germany.
Gesamtverband der Deutschen Versicherungswirtschaft explains the importance and calculation of type classes for car insurance.
Gesamtverband der Deutschen Versicherungswirtschaft shows the current regional classes for car insurance, broken down by federal state.
Deutsche Bundesbank publishes statistics on national producer and consumer prices.
FAQ
What does the term "affordable car insurance" mean in detail?
Affordable car insurance means securing the lowest possible premium while ensuring adequate and necessary coverage. It's not just about the price, but finding the optimal balance between cost and coverage, achieved through comparing different tariffs, adjusting contract features, and utilizing discounts.
How often should I review my car insurance to keep it affordable?
It's advisable to review your car insurance at least once a year, ideally a few weeks before the primary due date (often the first of January, with a typical cancellation deadline on the thirtieth of November). A review is also worthwhile if your life circumstances change (e.g., moving, new car, reduced mileage).
What documents do I need for a car insurance comparison?
For an accurate comparison, you typically need your vehicle registration (Part I) with information about the manufacturer (HSN) and type key number (TSN), your current insurance policy (to determine the SF class), details on annual mileage, the drivers, and where the vehicle is parked.
Is the cheapest car insurance always the best choice?
Not necessarily. The cheapest car insurance might come with coverage limitations that can be costly in the event of a claim (e.g., low coverage limits, no choice of repair shops, exclusion of gross negligence). Ensure a balanced ratio of cost to coverage that suits your individual needs. A comprehensive policy is often advisable for new cars.
Can I lose my no-claims class?
Yes, following an at-fault accident, you are usually downgraded to a worse no-claims class, which results in higher premiums. The exact reclassification depends on the insurer and the number of claims. A discount protection can prevent a downgrade after the first claim, but it comes at an additional cost.
What is the difference between type class and regional class?
The type class assesses the risk of a particular vehicle model (e.g., VW Golf). The regional class evaluates the risk within your registration area (e.g., Berlin vs. rural area). Both classes influence your insurance premium. Lower classes generally mean cheaper premiums. The premium rate is co-determined by these factors.
