How much does an insurance broker cost in Germany, and who pays the commission?
In short
In Germany an insurance broker usually does not send you an invoice. Who pays the commission (Courtage)? The insurer, out of your premium: around 15 to 25 percent of the annual net premium for contents or liability cover and around 5 to 10 percent for motor. How much does a fee cost? Only what you agree separately, for example with a fee based adviser at about 120 to 250 euros per hour.
What an insurance broker costs you in practice in Germany, and what a fee would cost instead.
Example
Typical range
Contents insurance, 100 euros net premium a year
0 euros invoice, about 15 to 25 euros commission inside the premium
Motor insurance, 500 euros net premium a year
0 euros invoice, about 25 to 50 euros commission inside the premium
Fee based insurance adviser
around 120 to 250 euros per hour, plus VAT where it applies
Two hours with an adviser at 150 euros net
300 euros net
Commission rates are published market ranges, not statutory figures; the source is itself a broker.
As of October 2026.
Worked example
A household with contents, liability and a car
How much commission sits inside three typical contracts bought through a broker, using the middle of the guide values.
Contents, 120 euros net premium, 20 percent
24 euros
Personal liability, 70 euros net premium, 20 percent
14 euros
Motor, 600 euros net premium, 7.5 percent
45 euros
Broker's invoice to you
0 euros
About 83 euros commission a year, paid by the insurers out of the premiums. In return the broker checks terms, application questions and later changes.
Who pays the broker's commission
A broker's pay in Germany is called Courtage. The insurer pays it once a contract is concluded, and for many lines it continues every year for as long as the contract runs.
Economically the commission is part of the premium you pay. So a broker is not free in the sense that nobody pays. But a broker normally costs you no more than buying through a tied agent or a comparison site, because their pay is also built into the premium.
How much commission a broker gets per line
Apart from private health insurance there are no statutory rates. The ranges below come from a published overview and are guide values that vary by insurer and contract.
Line of insurance
Typical commission (guide value)
Type
Personal liability, contents, buildings
around 15 to 25 percent of the annual net premium
ongoing
Motor
around 5 to 10 percent of the annual net premium
ongoing
Private health insurance
often 6 to 8 monthly premiums, legally capped
one off at signing
Life and pension insurance
often around 2.5 to 3.5 percent of total premiums
mostly at signing
When an insurance broker does charge a fee
Some contracts exist as net tariffs (Nettotarife) without built in commission, mainly life and pension policies. You then agree a separate fee with the broker, and the premium is lower accordingly.
Brokers may also give paid legal advice on insurance contracts to business customers who are not consumers (§ 34d (1) GewO). For private customers, commission remains the normal way a broker is paid.
Why you cannot get the commission back as a discount
German law bars intermediaries from passing commission on to you or granting special benefits (§ 48b VAG, Insurance Supervision Act). Only gifts of up to 15 euros per contract and calendar year are allowed. A broker who advertises cash back on commission breaks this rule.
The law only allows such money to be used for a lasting premium reduction or better cover within the contract itself, not as a cash payment to you.
Broker or fee based insurance adviser
If you want no commission involved at all, you can hire an insurance adviser (Versicherungsberater) licensed under § 34d (2) GewO. Advisers may only be paid by you and may not accept money from insurers. Published hourly rates are around 120 to 250 euros.
That mainly pays off for large or long contracts such as a pension policy. For contents or liability cover at 60 to 120 euros a year, a fee of several hundred euros usually costs more than the commission.
Step by step
Ask whether the broker works on commission or for a fee.
Ask for the status information showing the licence under § 34d GewO.
If you pay a fee, check that the policy really is a net tariff without commission.
Compare fee and commission over the whole term, not just the first year.
Checklist
Type of pay (commission or fee) known in writing
No double payment: fee only with a net tariff
Licence and register number checked
No offer to pay commission back in cash
Written record of advice received
Common mistakes
Believing that buying direct from the insurer is always cheaper
Paying a fee and still taking a policy with built in commission
Falling for cash back offers that are not allowed
Hiring an expensive fee based adviser for small property policies
Questions and answers
Frequently asked
Is an insurance broker free in Germany?
You normally get no invoice.
The insurer pays the commission, which is economically part of your premium.
How do brokers earn their money?
Through commission from the insurer, for many lines every year while the contract runs.
Only with net tariffs or a separate agreement through a fee.
Does the broker have to tell me how they are paid?
Yes, before you sign they must tell you how they are paid, for example by commission or fee.
Ask if you want to know the amount.
Will my premium be higher if I use a broker?
Usually not.
The same policy normally costs the same whichever way you buy it.
How does NAMMERT work?
Norman Nammert is an insurance broker under § 34d (1) GewO, register number D-C08Q-TOSD4-37.
He compares insurers, and the insurer pays the commission.
