Is switching tariffs
worth it in Germany?
If you are new to Germany, you often end up on the most expensive electricity, gas and insurance tariffs automatically. Here you will learn when switching really pays off, which rights protect you and how to move to a cheaper tariff step by step, without giving up on quality.
Key points at a glance
- Existing customers often pay more than new customers; switching can save several hundred euros a year.
- Moving electricity and gas out of the default tariff typically saves around 30 to 45 percent.
- In private health insurance, § 204 VVG allows an internal tariff switch without a new health check.
- Switching is especially worthwhile for contracts older than two years, after a price increase or a move.
Last updated: 8 June 2026 | Reading time: approx. 8 minutes
What you will find here
Why switching pays off, especially for newcomers
Providers reward new customers, not loyal existing ones. Anyone who leaves a contract untouched for years often pays more than necessary, because newer tariffs are priced more competitively. Newcomers are hit particularly hard: when you move in, your electricity is usually supplied through the expensive default (Grundversorgung) tariff of the local provider, and many people simply stay there.
Switching a tariff does not always mean changing provider. It can also happen within the same company, for example in private health insurance. What matters is comparing your own contract with the current market regularly. That single step reveals whether you are paying too much.
Remember: The biggest saving usually comes from the first switch away from a standard or default tariff. Once you are on a market-rate tariff, further switches only optimise in smaller steps.
Where switching saves the most
Not every tariff offers the same potential. Switching has the strongest effect on energy and private health insurance. The figures below are realistic ranges, not guaranteed results, because the actual saving always depends on your consumption and your current tariff.
Electricity and gas when leaving the default tariff
Internal PKV switch without a new health check
Mobile and DSL: often more data for the same price
Home contents and liability: check for cheaper options
Energy: the biggest immediate win
If you are still on the default tariff, you are almost certainly overpaying. Moving to a market-rate tariff saves several hundred euros a year on average, with no change to your consumption. Get an overview with our electricity comparison.
PKV: switch internally, not externally
An internal tariff switch within your own private health insurer often lowers the premium noticeably, frequently by 20 to 40 percent, without a health check and without losing your age provisions. An external switch to another insurer is usually not advisable.
Your rights when switching: EnWG and § 204 VVG
Electricity and gas: the Energy Industry Act (EnWG)
For electricity and gas, the deadlines are clearly regulated. Special contracts often have a minimum term of twelve months and a notice period of around four to six weeks before the contract ends. In the default supply (Grundversorgung), you can cancel with just two weeks notice, which makes switching especially easy. For neutral guidance on what to look for in a tariff, see Germany's consumer advice centre (Verbraucherzentrale).
PKV: your right to an internal tariff switch
In private health insurance, § 204 of the Insurance Contract Act (VVG) secures an important right: an internal switch to an equivalent tariff with the same company. When you move to the same or a lower level of benefits, no new health check may be required, and your age provisions (Altersrückstellungen) are credited in full. This right has existed since the VVG reform of 2008.
| Criterion | Internal switch (§ 204 VVG) | External provider switch |
|---|---|---|
| Health check | Not required (same/lower benefits) | Required |
| Age provisions | Credited in full | Largely lost |
| Risk surcharges | No new surcharges | Possible |
| Recommendation | For most insured people | Only in exceptional cases |
Be careful with an external PKV switch: Moving to another insurer costs you a large part of your accumulated age provisions and requires a new health check. For most insured people, especially those with pre-existing conditions, the internal switch under § 204 VVG is the better choice.
When switching makes sense and when it does not
Switching is worthwhile not only when costs rise. Certain contract signals and life situations are a clear reason to review your tariffs:
When a switch can wait: Shortly after signing an energy tariff with a long minimum term, switching rarely makes sense. Plan your next comparison about three months before the contract ends so you meet the deadlines.
Compare electricity tariffs and save
Enter your postcode and annual consumption and compare for free and without obligation. In a few minutes you will see how much a switch is worth in your case.
Independent, free comparison. meinetarife24 is financed through provider commissions, at no extra cost to you.
How to switch in a few steps
An electricity or gas switch usually takes less than 20 minutes and is simpler than many people expect. Here is how to do it:
Switching PKV internally: Send a written request to your insurer and refer explicitly to § 204 VVG. Ask them to name equivalent tariffs, check the benefits and excess, then apply for your preferred tariff in writing. To get set up as a newcomer, see our guide to getting started in Germany.
Avoid common mistakes
Want to save more on energy? Why switching your energy provider specifically pays off is explained in our compare electricity and gas providers.
For expats and newcomers
Germany's tariff system looks confusing at first. The most important insight is simple: existing customers rarely get the best price. Anyone who compares electricity, gas and insurance once a year and focuses on the total annual price saves reliably, without giving up quality.
meinetarife24 explains these topics in German, English and Turkish, so you can make an informed decision even if German is not your first language.
Frequently asked questions
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