Auto & Mobility
Car Insurance (Liability)
deregister car insurance money back
De-registering your car and getting your insurance money back: How to secure your refund
You have deregistered your car and are wondering how to get your overpaid insurance premiums back? The good news: In most cases, this happens automatically, but there are important details to keep in mind. Learn here how the process works and how to ensure you receive your money.
The topic in brief and concise terms
When a vehicle is deregistered, the car insurance is usually automatically cancelled and any overpaid contributions are refunded proportionally.
The registration office informs both the insurance company and the tax office about the deregistration.
A special right of termination exists, for example, in the case of premium increases or after a claim, usually with a one-month notice period. [4]
Quick Facts: Automatic Cancellation and Premium Refund
Deregistration of your vehicle with the registration office initiates several processes. The most important information: Your car insurance is usually automatically terminated. The registration office sends the deregistration information directly to your insurer. Therefore, you generally do not need to submit a separate cancellation. Premiums already paid in advance for the period after deregistration will be refunded to you on a pro-rata basis. This process is usually carried out automatically by the insurance company. The obligation to pay vehicle tax also ends with deregistration, and excess taxes paid will be refunded by the tax office. Please note that insurance cover ends at 23:59 on the day of deregistration. However, to ensure a smooth process, it is advisable to keep the deregistration confirmation. This clarity in the process is the first step towards your refund.
Practical Section: The refund process in detail
Once the registration office has informed your insurance about the vehicle deregistration, the internal process at the insurer begins. The insurance calculates the proportionate amount you are entitled to for the unused insurance period. For example, if you have paid your annual premium of 600 euros in advance and deregister your car after exactly six months, you are entitled to a refund of about 300 euros. The exact calculation is made on a daily basis from the date of deregistration. The payment is usually made within a few weeks to the account stored with the insurance. To speed up the process or if there are any uncertainties, you can send your insurance a copy of the deregistration confirmation. A practical tip: Check your contract documents or contact your insurer directly to clarify the exact terms and deadlines for the insurance correspondence. This way, you stay informed and secure your claims.
Here are the typical steps following the deregistration:
The registration office informs the insurance company and the tax office.
Your insurance contract is automatically terminated or converted into a dormant insurance.
Excess payments are calculated to the exact day.
The refund is usually made within two to four weeks.
The car tax is also partially refunded.
These steps illustrate the usual process that gets your money back.
Expert Depth: Legal Foundations and Special Cases
The automatic termination of the contract upon vehicle deregistration is anchored in the Insurance Contract Act (VVG) and is referred to as the cessation of risk. [1] This means that the reason for the insurance (the risk of operating the vehicle) no longer exists. It is important that the insurance obligation for a registered vehicle always exists. Termination without deregistration or new insurance cover can have legal consequences. When selling the vehicle, the insurance initially transfers to the buyer, who, however, has a special termination right of one month after the purchase. [4,5] As a seller, you should ensure timely re-registration or deregistration by the buyer, ideally within three days. Our expert tip: Record the exact time of handover in the purchase contract to minimize liability risks. In the case of temporary deactivation, the contract can transition into a premium-free suspension insurance, which often offers basic protection for up to 18 months. [2,2] Knowing these details will help you act correctly even in special situations.
Special Right of Termination: When You Need to Take Action
Although termination usually occurs automatically upon deregistration, there are situations where a special right of termination becomes relevant. This is the case, for example, when your insurance increases the premiums without adjusting the services. [4,3] You generally have a period of one month after notification of the increase to terminate. [4] Also, after a regulated claim, both you and the insurer can terminate the contract, usually within one month after the claim settlement is completed. [4] A vehicle change or the purchase of an already registered vehicle also gives the buyer a special right of termination. [3,4] Note that a move alone is usually not a reason for termination unless it leads to a premium increase due to a new regional class. [4,5] Knowing these regulations allows you to react flexibly to contract changes.
Reasons for a special right of termination can be:
Premium increase without service adjustment (Period: one month). [4]
After a regulated claim (Period: one month). [4]
When purchasing a vehicle (Buyer's right, Period: one month after purchase). [3]
Change in vehicle use with a significant premium increase. [1]
These points indicate when you can become active beyond the automatic deregistration.
nextsure: Your partner for tailored insurance coverage
The handling of car insurance after vehicle deregistration can raise questions. At nextsure, we understand that each insurance situation is unique. Our mission is to offer you comprehensive and easy-to-understand insurance solutions as a digital insurance portal. While the reimbursement upon deregistration is a standard process, we are here to assist you with more complex issues or if you desire a new, tailored coverage. We offer a wide range of car insurance options and niche products. Benefit from our expertise for your optimal protection. A change or realignment of your insurance coverage can often lead to savings of several hundred euros per year. Proper advice is crucial here. We help you keep the overview.
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More useful links
The Federal Administration Portal offers an entry to the service directory regarding vehicle registration.
The Service Portal Berlin provides details on vehicle deregistration.
Wikipedia offers a comprehensive overview of vehicle registration for road traffic in Germany.
Wikipedia explains the role and tasks of vehicle registration authorities in Germany.
The Federal Motor Transport Authority (KBA) publishes statistics on the decommissioning of vehicles.
FAQ
How does my insurance company learn about the car deregistration?
The motor vehicle registration office automatically informs your insurance company about the deregistration of your vehicle. You usually do not have to do this yourself, but providing additional information can speed up the process.
Do I always get a refund when I deregister my car?
Yes, if you have paid your insurance premiums in advance (e.g., annually or semi-annually), you will receive a proportional refund for the unused insurance period. The calculation is made precisely per day.
What is a dormancy insurance?
Dormancy insurance comes into effect when you temporarily decommission your vehicle. It is usually free of charge and provides limited insurance coverage (often third-party, fire and theft) for a period of up to 18 months. [2,2,7]
What documents do I need for car deregistration?
For deregistration, you need the registration certificate Part I, the registration certificate Part II, and the official license plates.
Does the vehicle tax liability also end automatically?
Yes, the registration office also informs the responsible main customs office (tax office for vehicle tax). Any overpaid vehicle tax will be refunded to you on a pro-rata basis as well.
What happens if the buyer of my car does not re-register it?
As long as the vehicle is registered in your name, you remain the legal owner and your insurance continues. It is important to set a deadline for re-registration in the purchase contract (e.g., three days) and to monitor this.
