How does change of the car insurance work in Germany? What are rules and deadlines? What happens with the car insurance if you switch the vehicle? These questions come into your mind when you are considering switching from one insurance provider to another or terminating the contract.
The change of car insurance in Germany is possible at the end of the insurance year (the end of the calendar year) unless the contact states another deadline. One month termination period must be considered. If you change the vehicle, you can change insurance provider as well, as long as the old car is taken out from the vehicle register.
Since this all story with contracts and insurances in Germany can get quite complicated we have written this guide. Changing car insurance isn’t something that you can do at any time and in the way you want. Hence, deadlines and rules must be considered and kept. Read everything about car insurance change & termination in this article.
Changing Car Insurance in Germany
So you have been thinking about switching your car insurance provider or changing the vehicle?
In fact, around 50% of car owners in Germany are thinking about changing car insurance every year (statistics from the platform Check24). Indeed, the country has many insurance companies, many of which provide attractive coverages and rates.
Most people just want to change their policy to save money (85%) or receive better insurance benefits (27%). So, maybe you have found a better deal or just buying a new car – the question about the cancellation of the current insurance arises.
Before doing any changes consider if new insurance will be worthwhile, maybe staying with the old provider is a better idea.
Generally speaking, the process of changing car insurance is quite straightforward, when keeping in mind all deadlines. For instance, you must know the end date of your contract, the termination happens one month before this date.
The termination deadline is usually on 30.11 and so your insurance will be canceled by 31.12. You must cancel the insurance plan in the written form per Email or mail and have the new coverage taken out by the termination date.
When Change of the Insurance Is Possible
The termination in Germany can get complicated. In many cases, cancellation is possible at the end of the current contract. However, there are some exceptions to the rule.
In the case of car insurance, the policy can be canceled at the end of an insurance year with a one-month period. Most of the insurance coverages have a validity period of one year, so you will need to wait until the right date.
The majority of car insurance policies have validity until 31 December, therefore, you must terminate coverage by 30 November. Exceptions are more flexible contracts, which could be made during the entire year (unterjährige). In that case, a client can determine the beginning and end of the insurance year, regardless of the calendar year.
If you don’t cancel the insurance, it will be extended by one year automatically. As we mentioned, there are some exceptions to the terminations rules in Germany. Hence, you can cancel your current car insurance and switch to another one if:
- Increase in the insurance contact or price
In case of the change in terms of the contract or price, the insurance company will inform a client in written form, usually per mail. After that, you can cancel the policy with a termination period of one month from the moment of receiving a letter.
- A claimed car accident
If a client has had an accident with the car, he/she can also cancel the policy before the expiration date. However, you need to claim the damages to the car from the company first, and only after terminating the contract.
Your request will be accepted whether insurance reimburses costs or not. Nonetheless, the termination is only possible after the completion of the negotiations, when a final decision about the compensation has been made. You will have one month termination period from that final decision.
Your contact with insurance company must state these exceptions, otherwise, you won’t be able to cancel the policy.
Change Car Insurance While Changing the Car
Many people would ask themselves if the change of the insurance is actually possible when changing the car. In Germany, when changing the car, you will need to deregister the old vehicle and register the new one in the car register. After doing this, the car owner can easily take out a new insurance policy/provider for a new vehicle.
In case, you sell the old car, the insurance will be transferred over to the new owner, and it won’t be canceled. Later, a buyer will change your name in the policy, or take out another insurance. After this has happened, your old car insurance will be canceled automatically.
Also, all your accident history will be transferred from the old insurance to the new one. In any case, you should inform the old insurance provider about the car sale beforehand.
Documents You Need for Changing Car Insurance
What documents do you need to change the car insurance? Following documents are required either for cancelling old policy or signing for a new one:
- Driver’s license and information about your driving experience
- Vehicle registration certificate for the information about manufacturer and model of the car
- The last tatement of the current insurance
- Car mileage
- The contract number of the current car insurance
Reasons for Changing Car Insurance
There are various reasons you might consider changing car insurance:
- Discount of other providers
- Lower rate
- Change of the driver
- Change of the place of residency
- Expiration of the contract
- Change of the vehicle
- Change in the coverage and benefits
- Customer service
- Increase in the current rate
- Having a car accident
A change of car insurance can potentially save you a lot of money. You always can find cheaper insurance for your vehicle after you learn more about the rates, your car, and your driving style.
Insurance companies are engaged in a real price war, especially during the changing season (November), during which you can find the best rates ever. Check out the best provider in terms of value for money – CosmosDirekt. In fact, many German tests confirmed their excellent price-performance ratio. In 2018, CosmosDirekt was announced as the most popular and preferable car insurance provider in Germany.
Another good reason to change is a better price-value ratio, as in the case of the CosmosDirekt. You might find another provider with better coverage and service for the same money.
Deadlines for Car Insurance Change
In order the change your car insurance you must pay attention to the deadlines.
- Change car insurance at the end of the insurance year
For the ordinary termination of car insurance, the deadline for most insurers is 30 November, if something else isn’t stated in your contract. You must send a termination notice by this date.
- Change car insurance in the middle of the year
With more flexible contacts other periods might apply, they usually differ to the calendar year. However, the same termination period of one month applies.
Don’t cancel until you have signed the new contract with another firm. Your vehicle must be always covered by the insurance.
Change Car Insurance in Germany: Step by Step
If you are still determined to change car insurance in Germany, just follow these 4 steps:
Step 1: Check notice period
Depending on the contract, the termination rules can vary. Generally, car insurance in Germany can be changed/canceled at the end of the insurance year, which is usually a calendar year. However, your insurance might have different policies, so check this out.
Step 2: Compare rates and policies of other providers
Before signing new insurance, make a throughout research and comparison. This way you don’t have to change a provider again any time soon. Consider which coverage should it have and what is the yearly price.
The comparison platforms such as Verivox allow you to see all available providers, their coverages, and rates. Moreover, you can calculate the most affordable or optimal for your case offer. The best time for the selection of the new car insurance is November. Many insurance companies will offer low rates since many people cancel policies during that time.
Step 3: Make a new insurance contract
Now you have selected the best company and the best deal for the car, it’s time to sign a new contract. The eVB number (electronic insurance confirmation) will be sent to you within 24 hours after the conclusion of the agreement.
Upon receiving this confirmation, you can terminate the current contract. Your new insurance company will automatically inform the competent vehicle registration office about the change of insurance.
However, you should only sign new insurance only if you follow all deadlines and regulations of the cancelation from your old provider. Otherwise, they might refuse the termination request, and you end up with two car insurances!
Step 4: Terminate old insurance
At this moment you already have a new policy, so your car is secure. Hence, cancellation of old insurance must be made within the notice period (1 month). The termination happens in written form, per email or mail. Your damage-free discount (Schadenfreiheitsrabatt) and accident history will automatically be transferred from the old to the new insurance.
Best Car Insurances in Germany
Allianz is one of the reputable and biggest insurance companies in the world. In Germany, it’s the second-biggest vehicle insurance provider with 8,2 million clients. You can select between 4 different coverages for your car:
Policies differ in benefits and price. The rate of the car insurance from Allianz starts already from 72 EUR annually. They also have digital car insurance, which will save you money and give you some flexibility.
Most of the policies offer coverage of 100 million EUR. You can count on great customer service with Allianz. It’s a big corporation, hence they have departments with consultants all over Germany. Nonetheless, customer support is limited for owners of the digital policy.
Read reviews about car insurance from Allianz here.
CosmosDirekt is a car insurance provider that stands not only for low prices but also for excellent value for money. In 2018, CosmosDirekt was announced as the most popular car insurance provider in Germany.
Customers are particularly happy with service, price-performance ratio, and coverage & benefits. CosmosDirekt is by far the most recommended car insurance in Germany.
Clients receive 24/7 support and consultation, 24/7 service to make claims in case of the accident. Their customer service is seen as very good by car owners.
You can benefit from various discounts with CosmosDirekt, in fact, new customers can save up to 40% on car insurance. Moreover, discounted rates are offered for students, academics, civil servants, public servants, tax consultants, auditors, management consultants, driving instructors, etc.
The company offers all types of coverage from liability to the full package. Furthermore, all of them are divided into Basic and Comfort, meaning you have more choice. Customers can create their personal insurance plans by adding the services they want. All policies have coverage of 100 million EUR.
Save money with CosmosDirekt:
- 5% customer bonus by signing a policy
- 10% discount for electric cars
- up to 10% family bonus
- up to 10% for house owners
- discounts when purchasing a new or used car
Read all reviews about CosmosDirekt on Trustpilot.
Changing insurances with CosmosDirekt
In case you want to stay flexible and find a provider who allows extraordinary insurance change, CosmosDirekt got some options for you! You can change insurance easily:
- Customers of CosmosDirekt have a special right of termination (extraordinary termination) if your policy price has increased or there was a change in the terms of the contract. It also applies if your contribution has increased after you have changed the vehicle type.
In that case, you can cancel the insurance plan with the one-month of termination deadline.
AXA is another large and reputable insurance company in Germany. They offer different packages at different rates, all of them have coverage of 100 million EUR. The most popular are “mobil compact” with the best price-value ratio and “mobil comfort” with comprehensive coverage.
Additionally, AXA offers digital car insurance “mobil online” with particularly favorable conditions. Any packages can be individually adapted to personal needs.
Compare Car Insurances
Before signing for new insurance, make a throughout research and comparison. This way you don’t have to change a provider again any time soon. Consider which coverage should it have and what is the yearly price.
The comparison platforms such as Verivox allow you to see all available providers, their coverages, and rates. Moreover, you can calculate the most affordable or optimal for your case offer.
The best time for the selection of the new car insurance is November. Many insurance companies will offer low rates since many people cancel policies during that time.
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- Health insurance for students
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- Check how much you can earn in Germany (for all professions)
- Free online consultation/assessment with German lawyers and tax advisors
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- Liability insurance
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- Compare providers and rates for various insurances, sim cards, internet, electricity, banking accounts, credits & loans, and more.
- Get your first 3 free money transfers in Germany and Send money from/to Germany across the world for pennies.
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