Auto & Mobility
Car Insurance (Liability)
cancel car insurance upon deregistration
Cancelling Car Insurance on Deregistration: Your Guide to a Smooth Contract Termination
Deregistering your vehicle and wondering what happens to your car insurance? The good news is that in most cases, cancellation occurs automatically, but there are important details to consider. This guide will safely lead you through the process.
The topic in brief and concise terms
When deregistering a vehicle, the car insurance is usually automatically cancelled by the registration office; a separate cancellation is often not necessary.
Excess insurance contributions are reimbursed on a pro-rata, daily basis, and generally, a contribution-free suspended insurance cover comes into effect for up to 18 months.
Proactive communication with the insurer and reviewing the final invoice as well as the terms of the dormant insurance is advisable. [-1,8]
Quick Facts: Understanding Automatic Termination and Extended Coverage
When you deregister your vehicle with the registration office, your car insurance is generally automatically terminated. The registration office directly forwards the information about the decommissioning to your insurer. A separate, written cancellation from you is usually not required. The contract typically ends at 23:59 on the day of deregistration. After deregistration, a contribution-free dormant insurance often comes into effect, which can last for up to 18 months depending on the provider. This dormant insurance offers basic protection, for instance, for liability damages, even if the vehicle no longer participates in road traffic. [3] Any excess premiums paid for the main insurance will be refunded to you on a pro-rata basis. It is advisable to inform your insurer of the deregistration confirmation to expedite the process. The General Terms and Conditions for Car Insurance often provide detailed information on this. This automatic processing significantly simplifies the process for you as the policyholder.
Practical Section: The deregistration process and its impact on your contract
The process of deregistering a vehicle is standardised nationwide in Germany and can be carried out at any registration office, regardless of the place of registration. For vehicles registered after the first of January 2015, online deregistration is often possible. You will usually need the registration certificate part one and two (vehicle registration and title) as well as the number plates. The cost of deregistration is generally around seven to ten euros. [-1] After deregistration, the registration authority not only informs your insurance but also the main customs office for the deregistration of vehicle tax. A practical example: Max Mustermann sells his car on the 15th of a month and deregisters it on the same day. His insurance, which was paid annually in advance, refunds him the contributions for the remaining five and a half months. The exact calculation is made on a daily basis. [-1] If you are wondering when you will get money back from the insurance, this usually happens within a few weeks after deregistration. The dormant insurance takes effect immediately after the cancellation of the main insurance. This covers, for example, damages that could be caused by the vehicle parked on private property. As mentioned earlier, the duration of this dormant insurance can be up to 18 months. Thereafter, the insurance cover completely expires if the vehicle is not re-registered or otherwise insured. It is important to know the exact conditions of your dormant insurance.
Expert Depth: Special Cases and Legal Aspects of Termination
Although the termination of car insurance usually occurs automatically upon deregistration, there are situations that require special attention. One such case is the sale of the vehicle. Here, you should clearly specify in the sales contract who will handle the deregistration – you as the seller or the buyer. If the buyer does not promptly re-register or deregister the vehicle, you could be held liable for damages caused by the vehicle still registered in your name. Our expert tip: It is best to deregister the vehicle yourself before handing it over. This ensures maximum security for you. Another important consideration is the possibility of suspending the insurance rather than cancelling it entirely, should you plan to re-register the vehicle at a later date. The suspension insurance is the standard solution for this. Legally, the automatic termination of the contract is based on the elimination of the insured risk, as a deregistered vehicle may no longer participate in public road traffic, thus eliminating the insurance obligation. The legal basis for this can be found in the Compulsory Insurance Act (PflVG) and the General Terms and Conditions for Motor Vehicle Insurance (AKB). Ensure that the deregistration is actually communicated to your insurer by the registration office; a quick inquiry with your insurer can clear up any last doubts. When switching to a new vehicle and insurer, it is also important to understand the processes thoroughly.
The following points are particularly relevant when deregistering and terminating the associated insurance:
Automatic notification of the insurance by the registration office.
End of the contract usually on the deregistration day at 23:59.
Partial refund of insurance premiums already paid.
Commencement of a contribution-free suspension insurance for up to 18 months.
No separate termination by the policyholder necessary.
Possibility of online deregistration for newer vehicles.
These aspects usually ensure a smooth transition.
Deadlines and Formalities: What You Need to Consider After Deregistration
Once the registration office has informed your car insurance company about the deregistration, the billing of your contract will take place. The refund of overpaid contributions normally happens automatically and is precisely calculated to the day. The time until the credit is received can vary, but it usually takes a few weeks. It is not necessary to actively apply for the refund. Keep the deregistration confirmation from the registration office safely. This serves as proof. The storage insurance that comes into effect after deregistration is generally free for a period of up to 18 months. It offers basic protection, such as liability coverage, in case the parked vehicle causes damage. You can find details on this in your contract terms or by inquiring with your insurer. If you do not register a new vehicle or reactivate the insurance within these 18 months, the contract will terminate permanently. In the event that you are planning a change of policyholder, different regulations apply. Always clarify all details directly with your insurance provider.
Our expert tip: Proactive communication and document review
Although the process of cancelling your car insurance upon deregistration is largely automated, we at nextsure recommend a proactive approach. In addition to the report by the registration office, inform your insurer yourself about the deregistration. [-1] Send a copy of the deregistration certificate. This can speed up the processing and avoid misunderstandings. Also, check your bank statements promptly for the correct refund of contributions. Carefully check your insurer's final invoice. If there are any uncertainties, for example regarding the duration or scope of the suspension insurance, contact your insurer directly. This is particularly important if you plan to re-register the vehicle after more than 18 months, as the original suspension insurance may no longer be valid. Even when writing letters to insurers, precision is required. Clear communication optimally safeguards your interests. Remember that the policyholder also has certain obligations. A careful review of all documents and deadlines is always advisable.
nextsure at your side: Tailored solutions even after termination
Deregistering a vehicle and the associated cancellation of car insurance often marks a transition. Perhaps you're planning to purchase a new vehicle, or your mobility needs have changed. As your digital insurance portal, nextsure offers you comprehensive advice and tailored insurance solutions during this phase. We understand that every situation is unique. Our mission is to provide you with easy-to-understand and precise insurance concepts. Even when it comes to the transfer of car insurance in the event of death, we are here to support you with advice and assistance. Leverage our expertise for your optimal protection. We help you find the right insurance for your new situation, whether it’s for a new car, an e-bike, or another niche insurance from our portfolio. A call or a message is all it takes. We are happy to assist you in keeping an overview and making the right decisions for your future protection.
Your next step: Contact us for personalised advice
Properly handling your car insurance when deregistering a vehicle is an important step to avoid financial drawbacks and ensure a seamless transition. Have you considered all eventualities? Are you unsure about the temporary coverage or the premium refund? Don't hesitate to seek professional assistance. An individual risk analysis can provide clarity and reveal optimization potentials. At nextsure, we specialize in assisting you with all insurance matters. Our experts analyse your situation free of charge and provide you with concrete recommendations for action. This ensures that your insurance coverage remains optimally tailored to your needs in the future. Contact us now.
More useful links
Kraftfahrt-Bundesamt (KBA) provides detailed statistics on vehicle deregistrations in Germany.
Kraftfahrt-Bundesamt (KBA) informs about the internet-based vehicle registration (iKfz) in Germany.
Wikipedia offers a comprehensive article on car insurance in Germany.
FAQ
What happens to my car insurance if I deregister my car?
Your car insurance is usually automatically terminated. The registration office informs your insurer, and the contract is dissolved on the deregistration date. You will receive a refund for any overpaid contributions. A dormant insurance usually takes effect for up to 18 months.
Do I need to inform the insurer about my car deregistration?
Although the registration office informs the insurance, it is advisable to additionally notify your insurer about the deregistration yourself and submit a copy of the deregistration confirmation. [-1] This may expedite the process.
How quickly do I get my money back from the insurer after deregistering the car?
Refunds of proportional contributions are usually processed within a few weeks after deregistration. The exact duration may vary depending on the insurer.
What documents do I need to deregister my car?
To deregister, you usually need the registration certificate Part I (vehicle registration document), the registration certificate Part II (vehicle title), and the number plates.
Can I deregister my car online?
Yes, for vehicles registered from 1 January 2015 onwards, online deregistration is often possible. You will need, among other things, a new identity card with an activated online ID function.
What are the costs of deregistering a car?
The cost of deregistering a car in Germany is usually between seven and ten euros, but may vary slightly depending on the registration office and effort. [-1]
