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Is telematics car insurance worth it in Germany?

In short

Mainly for young drivers with a high premium. Discounts of up to 45 percent are possible, but most tariffs cap them at 30 to 40 percent, and few drivers reach the maximum. If you already have a good no-claims class (Schadenfreiheitsklasse), drive a lot at night or in rush hour, or do not want to share location data, you save little or nothing.

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Is telematics car insurance worth it in Germany?

What it costs

Discount ranges from a comparison of 19 telematics tariffs and published premiums for new drivers.

Example	Typical range
Highest discount in the comparison	up to 45 percent
Usual cap in the tariffs	30 to 40 percent
New driver, EUR 1,400 a year, 10 to 20 percent discount	about EUR 140 to 280 saved a year
Experienced driver, EUR 400 a year, 10 to 20 percent discount	about EUR 40 to 80 saved a year

Maximum discounts from the Stiftung Warentest comparison (February 2022). The realistic range of 10 to 20 percent and the two example premiums are guide values from our quoting practice. As of September 2026.

Worked example

19 years old, own policy, small car

Without telematics the premium is EUR 1,400 a year. She drives mostly during the day and outside town to her training place.

Premium without telematics	EUR 1,400
Discount for careful driving, 10 to 20 percent	EUR 140 to 280
Discount for a very good score, 30 percent	EUR 420
Poor score, for example many night trips	no discount, premium usually stays at EUR 1,400

Realistically the premium falls to about EUR 1,120 to 1,260. Compare that with being insured as the parents' second car, which often saves more.

How a telematics tariff works

An app or a small sensor in the car records how you drive: how hard you accelerate and brake, how fast you take corners, whether you keep to the speed limit, what time of day you drive and whether you pick up your phone.

This produces a score, usually between 0 and 100. The higher the score, the bigger the discount, which is normally offset against your next premium bill.

Driving style	Effect on the score
Smooth, anticipating, within the limit	good
Many trips at night	worse, even if you drive safely
City traffic at rush hour	often worse
Phone in your hand while driving	much worse
Trips as a passenger that the app does not notice	can distort your score

How much you realistically save

Few drivers reach the maximum in the advertising. If you drive carefully but not perfectly, expect something in the range of 10 to 20 percent.

What that means in euros depends on the premium. For a new driver paying EUR 1,400 a year, 10 to 20 percent is already EUR 140 to 280. For an experienced driver paying EUR 400, it is EUR 40 to 80, and for that you hand over a year of driving data.

What is different if you come from abroad

Many expats start in Germany in a poor no-claims class because insurers do not always recognise years without claims from abroad. Then your premium is high, and telematics can help noticeably. Ask first whether a no-claims certificate from your previous insurer is accepted, because that usually saves more.

Some telematics apps are only available in German. Check that you understand the feedback and the conditions before you sign.

The downside: your data

If you drive a lot, the data reveals quite precisely when you are where. When Stiftung Warentest checked the privacy policies, it found clear shortcomings in more than half of them.

Before you sign, read which data is stored, for how long, who receives it and whether it may be used after an accident.

When you do not need telematics

With a high no-claims class your premium is already low, and a tariff without telematics is often just as cheap or cheaper.

People who drive at night for work, commute daily in city traffic or share the car with others rarely get a good score. For new drivers there are other options too, such as being insured as the parents' second car (Zweitwagen) or accompanied driving from 17.

Step by step

Get the premium without telematics as your benchmark.
Check whether a second car policy of your parents or recognition of foreign no-claims years is cheaper.
Read in the conditions whether a poor score only costs the discount or raises the premium.
Read the privacy policy: which data, for how long, to whom.
Pause the app on trips as a passenger if the tariff allows it.
After one year, compare the actual discount with a tariff without telematics.

Checklist

Discount worked out in euros, not just in percent
No surcharge for a poor score
Privacy policy read and understood
No cost for sensor or app
Telematics module can be cancelled at the end of the year

Common mistakes

Calculating with the advertised maximum instead of a realistic discount
Choosing telematics with a high no-claims class although a normal tariff is cheaper
Overlooking that night trips lower the score even if you drive safely
Sharing the car with others whose driving counts towards your score

Questions and answers

Frequently asked

Can a telematics tariff become more expensive?

With most tariffs a poor score only costs the discount. A few tariffs do provide for surcharges. It is in the conditions, read it before you sign.

What data does the app collect?

Depending on the tariff, acceleration, braking, speed, cornering, time, route and phone use. Many tariffs also evaluate GPS data.

Is telematics worth it for experienced drivers?

Rarely. With a good no-claims class the premium is already low, so the discount in euros is small.

What happens when I travel as a passenger?

A phone app does not always notice and may count the trip as yours. Some apps let you mark trips as a passenger afterwards.

Can I end the telematics tariff?

Usually at the end of the insurance year. The discount then ends, and the policy continues as a normal tariff or is cancelled.

Does telematics help build my no-claims class?

No. The no-claims class only improves through years without claims. Telematics gives an extra discount, it does not replace the class.

Sources

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