A Right Many Policyholders Do Not Know They Have
If your private health insurance (private Krankenversicherung, PKV) premium has risen and you are tempted to switch insurer, there is usually a better first step. Under §204 of the German Insurance Contract Act (Versicherungsvertragsgesetz, VVG), you have a legal right to change to a different tariff with your existing insurer while keeping the ageing reserve you have built up. It is one of the most powerful — and underused — tools for controlling PKV costs.
Why it matters: when you switch to a new company, most of your ageing reserve (Alterungsrückstellung) is lost. When you switch tariff internally under §204, your full reserve moves with you — so you cut your premium without sacrificing years of accumulated savings.
How the Right Works
Your insurer must, on request, offer you tariffs with broadly equivalent cover and credit your accumulated ageing reserve toward the new tariff. Key principles:
- Your ageing reserve transfers in full to the new tariff
- For equivalent or lesser benefits, no new health assessment is required
- For any additional benefits beyond your current cover, the insurer may apply a health check or a risk surcharge — but only for that extra portion
- You keep your original entry age in the reserve calculation
Why Internal Switching Beats Leaving
| Action | Ageing reserve | New health check? |
|---|---|---|
| §204 internal tariff change | Transfers in full | Only for added benefits |
| Switch to a new insurer | Only a limited portion transfers | Full new assessment |
Because a new insurer means a fresh health assessment and the loss of most of your reserve, internal switching is almost always the smarter route for an existing policyholder — especially if your health has changed since you first joined.
How to Use It
- Ask your insurer for a list of alternative tariffs with equivalent cover and the resulting premium
- Compare benefits carefully — a cheaper tariff may trim certain modules; decide what you can do without
- Request that your full ageing reserve be credited to the new tariff
- Get independent advice if the options are complex — an adviser can identify the best internal tariff for your needs
A Word of Caution
Cheaper internal tariffs sometimes achieve their lower premium by raising the deductible or trimming benefits, so make sure the new tariff still meets your needs rather than simply chasing the lowest number. Used thoughtfully, §204 lets you keep the insurer relationship and reserve you have built while bringing your premium back under control.
Frequently Asked Questions
Compare PKV Tariffs for Your Situation
Our independent advisors help expats and professionals find the right private health insurance — personalised to your age, health, and budget.
Get My Free Quote