The Switch That Is Rarely Worth It
When premiums rise, many privately insured people wonder whether moving to a cheaper private health insurance (private Krankenversicherung, PKV) company would help. Usually, the honest answer is: probably not. Changing insurer carries a significant hidden cost — the loss of most of your ageing reserve — that often outweighs any premium saving. Understanding this prevents an expensive mistake.
The trap: when you move to a new insurer, only a limited, Basistarif-linked portion of your ageing reserve (Alterungsrückstellung) transfers. The rest — years of accumulated savings that subsidise your future premiums — is generally lost.
Why Changing Insurer Costs You
Two things happen when you switch companies:
- You lose most of your ageing reserve, so the new insurer effectively re-prices you without the cushion you had built
- You face a fresh health assessment, and any conditions developed since you first joined can raise your premium or trigger exclusions
For an older policyholder, or anyone whose health has changed, these two factors usually make switching insurer a poor deal — the apparent saving evaporates once the lost reserve and re-underwriting are accounted for.
The Better First Step: §204 Internal Switch
Before considering a new company, use your legal right under §204 VVG to switch to a cheaper tariff with your existing insurer. This keeps your full ageing reserve and original entry age, and needs no new health check for equivalent or lesser cover. In the large majority of cases, an internal switch achieves most of the saving without any of the downside.
| Option | Ageing reserve | Health check |
|---|---|---|
| §204 internal tariff change | Kept in full | Only for added benefits |
| Switch to new insurer | Mostly lost | Full re-assessment |
When Switching Insurer Can Make Sense
There are narrow cases where changing company is defensible:
- You are young and very healthy, with a small reserve so far, and a clearly better long-term insurer is available
- Your current insurer has no suitable cheaper tariff and a persistent record of steep increases
- Your needs have fundamentally changed in a way your insurer cannot match
Even then, weigh the lost reserve and re-underwriting carefully, ideally with independent advice.
How to Decide
Start by asking your insurer for §204 alternatives and compare them honestly. Only if those fall short should you model a full switch — including the value of the reserve you would forfeit and the risk of a new health assessment. For most established policyholders, the smart move is to optimise within their insurer, not to chase a headline premium elsewhere.
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