When can I cancel my car insurance early in Germany?

Published market figures show what a special cancellation can be worth.

If your insurer raises the premium under an adjustment clause and the cover stays the same, you may cancel within one month of receiving the notice. This is set out in section 40 of the Insurance Contract Act (VVG). The insurer has to point out this right in the notice itself.

This also applies when your car model moves into a higher type class (Typklasse) or your registration district into a higher regional class (Regionalklasse). The cancellation takes effect at the earliest on the day the higher premium would apply, so you never pay the new price.

Many renewal notices arrive in late November or December. That makes the special right a second chance after the usual 30 November deadline.

Once the insurer has paid or refused a liability claim, both sides may cancel within one month. For comprehensive and partial cover the same applies under section 92 VVG, counted from the end of the claim settlement. You can cancel with immediate effect or for the end of the current insurance year, not later.

To be honest: switching does not help you escape the downgrade. Your new insurer asks the old one for your claims history and places you in the same class. Cancelling makes sense if the claim was handled badly or another policy is cheaper even after the downgrade. A no-claims protection add-on (Rabattschutz) usually only works with the insurer that sold it and is lost when you switch.

When you sell your car, the policy passes to the buyer. The buyer may cancel it within one month of the purchase, with immediate effect or for the end of the insurance year. As the seller you report the sale and receive a pro rata refund from the date of transfer.

If you buy a different car you need a new policy anyway, with a new electronic insurance confirmation (eVB number). You can choose any insurer and take your no-claims class with you. If you deregister a car, the policy usually ends or is suspended, depending on the terms.

If the premium rises because your own risk has changed, there is no special right. This covers a no-claims downgrade after an accident, a move to a more expensive district, a higher annual mileage or adding a young driver.

Even a premium that falls less than you expected is not always an increase. Compare the tariff premium and your discount level with last year's bill. If the tariff itself has gone up, it counts.

Moving abroad is not a special reason in itself. In practice the policy ends when you deregister or sell the car. Ask your insurer for a written confirmation of your no-claims years before you go, ideally in English, so a future insurer can consider them.