This is how you can easily cancel your car insurance. It’s an open secret that switching car insurance can make financial sense. Anyone who has been under contract with one and the same insurance company for more than five years pays too much in most cases. More than 50 million Germans have auto liability insurance. However, very few people know that you can save a lot of money not only on car insurance, but also on the legally required liability insurance. In order to change car insurance, however, it is necessary to cancel the contract with the insurer. Many drivers are unsure when it is possible to cancel the insurance and sign a new contract. It’s not difficult to cancel car insurance. For this reason, we have designed a guide that will support you in terminating car insurance.
Opportunities for termination at a glance
There are two ways to cancel car insurance. On the one hand, it is possible to submit an extraordinary termination to the insurer before the contract expires, and on the other hand, the insurance can also be terminated in the ordinary way at the end of the contract. Insurance customers only have these two options for canceling car insurance. However, there is also the possibility of informing the current insurer of the intention to terminate the contract and confronting them with a comparative offer. In most cases, insurers do not want to lose customers and offer improved conditions to extend the contract period.
Extraordinary cancellation of car insurance
Submitting a termination in the middle of an ongoing contract is only possible under special conditions. This is called an extraordinary termination. Reasons for early termination of the contract may be price increases, a claim or a change on the part of the insurer with regard to the terms of the contract. Even if changed contract details come into force due to new laws, customers have the option of making use of a special right of termination. The only exception is a change in benefits that leads to an increase in premiums and promises the insured person better motor vehicle protection. In this case, it is not possible to extraordinarily terminate a car insurance policy.
Ordinary cancellation of car insurance
The intermittent fever of German drivers is dated November 30th. Motor vehicle insurance can be canceled with a notice period of one month before the main due date of the year. The main due date for over 80% of contracts is January 1st. one year. In these cases, the notice of termination must be received by the insurer by November 30th. Until then, drivers have the opportunity to properly terminate a contract with a motor vehicle insurer. So you should take care of a new insurance before this deadline and have submitted a letter by registered mail to the current insurer by November 26th at the latest.
Termination in the event of a premium increase
The contract can also be terminated after a premium increase if the benefits are not improved at the same time. If you want to make use of this right, you must cancel within one month after receipt of the contribution invoice. The termination then takes effect immediately, but at the earliest at the time when the increase takes effect.
If the insurer wants to enforce new tariffs, he must compare the old and new tariffs in liability insurance and inform you at least one month before the date on which the change is to take effect. In addition, he must refer to the right of termination in writing. If the insurer does not inform you or only provides insufficient information, you can withdraw from the contract one year after the first premium payment. However, it should then be difficult to find another insurer who will insure the risk from the start of the insurance, since backdating is only possible for a limited period of time (usually a maximum of 3 months).
How to Cancel Your Car Insurance Policy
If you’re thinking about cancelling your car insurance policy, there are a few different ways to go about it.
Call your provider
The first step is to call your car insurance provider and ask about cancelling your policy. You may be able to cancel your policy online or over the phone, depending on the provider.
If you’re cancelling your policy online, be sure to have all of your information handy, including your driver’s license number, insurance ID number, and the policy number.
Mail or fax your cancellation
If you’re cancelling your policy over the phone, you can also fax or mail your cancellation to your provider.
Visit the office
If you’re cancelling your policy online or by fax, you can also visit the provider’s office to cancel your policy in person.
Have your new insurer deal with it
Once you’ve cancelled your car insurance policy, your new insurer will take over. Make sure to tell your new insurer about your cancellation so they can start processing your claim.
Other cancellation options
Claim
Another possibility of termination is after a settled claim has occurred. However, if you make use of this right of termination, the insurer retains the right to the full annual premium. Such a termination is therefore not advisable.
Total loss
After a total loss or scrapping, the contract ends automatically as soon as the vehicle has been deregistered at the road traffic office. The annual premium must be repaid proportionately by the insurer.
Sale / change of vehicle
If the vehicle is sold, both the buyer and the seller can terminate the old contract within one month. If the buyer wants to change insurance, they apply for a different contract with another company. The old contract is then automatically considered terminated.
Change of residence
A change of residence in itself does not constitute a right of termination. However, if the vehicle is deregistered at the old place of residence and registered at the new one, there is an extraordinary right of termination.
Game rules
First, you should check whether the old contract has existed with the previous insurer for at least a year. If not, the insurer can bill the contract at an expensive short rate after termination. Some insurers do not offer this option and instead bill based on actual insured days (prt). Please check whether you may incur additional costs due to the short tariff.
The letter of termination should preferably be sent by registered mail/return receipt. Above all, make sure that a completely filled-in duplicate card from the new insurer is sent to the relevant road traffic office in good time. Make sure that any comprehensive cover you have applied for (fully comprehensive / partially comprehensive) has been noted / ticked on this double card.
Conclusion
If you feel that you no longer need or want car insurance, there are a few things you can do to get Rid of it. First, talk to your car insurance company and see if you can get a policy that is shorter or less expensive. If that doesn’t work, try to shop around for a better policy. Remember, you only have a few months to get rid of your car insurance before it becomes a contract that you have to keep. Finally, if all else fails, talk to a lawyer about terminating your car insurance. A lawyer can help you figure out the best way to get rid of your car insurance.