Auto & Mobility
Classic car insurance
pause car insurance
Let your car insurance rest: Save costs and optimise protection
Are you planning an extended stay abroad or only using your vehicle seasonally? Discover how you can suspend your car insurance and save money while still maintaining essential coverage. We'll explain step by step how it works.
The topic in brief and concise terms
The car insurance can remain inactive without contributions for up to 18 months during temporary deactivation of the vehicle, usually retaining third-party liability and partial coverage.
Prerequisites include deregistering the vehicle and having a secure, private parking space; the SF class often remains unchanged.
The suspension of insurance automatically begins when you deregister and ends upon re-registration or after the maximum duration has expired, without requiring a cancellation.
Quick Facts: The most important information about chill insurance at a glance
If you are temporarily not using your vehicle, the 'rest insurance' is a smart option. It automatically comes into effect as soon as your insurance company is informed of the deregistration by the licensing authority. Here are the key points summarised for you:
Premium-free: Generally, there are no additional costs for the rest insurance if the contract has previously existed for at least one year.
Duration: The protection of the rest insurance usually applies for a period of twelve to 18 months, and for some providers even up to 24 months.
Requirements: The vehicle must be deregistered with the licensing authority and must not participate in public road traffic. It must be parked on a private, enclosed parking space or in a garage.
Scope of coverage: During the resting phase, the insurance coverage generally includes motor vehicle liability and, if previously available, partial coverage.
No-claims class: Your achieved no-claims class (SF class) is usually preserved if the interruption is not too long.
These regulations offer you flexibility and security, even when your car takes a break. In the following, we will go into more detail on the individual aspects.
Practical Part: When is a temporary insurance useful and how does it work?
Deciding to suspend car insurance can be sensible in various life situations. A classic example is a planned, multi-month stay abroad, where the car remains safely in the home garage. This is also common practice for seasonally used vehicles like convertibles or motorcycles that aren't driven in winter. Another scenario is selling the vehicle when a new one is not immediately acquired, or undergoing a lengthy repair phase after an accident. In all these cases, suspending your insurance can help you save on premiums for the motor liability insurance and possibly the comprehensive insurance. The process is straightforward: your insurance is automatically notified and the contract enters a dormant state when you officially deregister (decommission) your vehicle at the registration office. Usually, no separate application is required to suspend car insurance. The deregistration fee itself ranges from about ten to 30 euros, depending on the registration district. Note that there often needs to be a minimum period of two weeks between deregistration and re-registration. The suspension period ends automatically as soon as you re-register the vehicle or the maximum suspension period (usually 18 months) expires. Therefore, no cancellation of the suspension insurance is necessary. This automatic transition makes it easy for you to reduce costs without having to forgo basic protection.
Scope of coverage during the rest phase: What protection remains?
Even if you let your car insurance rest, you're not completely without protection. The extent depends on your previous policy. Generally, the cover of the motor liability insurance remains, often with the statutory minimum coverage amounts. This means that if your parked vehicle causes damage, for instance from falling parts, this cover applies. If you had a comprehensive or partial comprehensive insurance before deactivation, partial comprehensive cover usually continues during the resting insurance period. This covers damage from theft, fire, explosion, storm, hail, lightning or flooding. Glass breakage or damage from marten bites may also still be insured depending on the policy. It is important to note that comprehensive cover, which includes vandalism or self-inflicted accident damage, is usually not active during the resting period. However, a few policies offer full cover here as well. Please refer to your contract documents or contact your insurer directly for precise conditions on which cover applies to your vehicle during the resting insurance period. The vehicle must not be driven or parked on public roads during this time. Usually, only trips to the registration office for registration or deregistration or to carry out the main inspection are permitted, provided these have been approved by the authorities. Adhering to these guidelines is crucial for maintaining insurance protection.
Impact on the no-claims discount class (SF class): What happens to your discount?
A common concern when putting your car insurance on hold is the no-claims bonus class (SF class). The good news is: in most cases, your no-claims bonus class accumulated over the years is retained if the resting period is not too long. Many insurers store the SF class for a period of seven to ten years. If the break is less than six months, some insurers even positively count this downtime towards the SF class. However, there is no uniform regulation, and handling may vary depending on the insurer. Some providers downgrade the SF class if the insurance is inactive for more than a year. Therefore, it is advisable to check in advance with your insurer how long your SF class will be retained during a paused insurance. For seasonal license plates, it often applies that the SF class is only upgraded if the vehicle is registered for at least six months a year. In the case of shorter registration periods, for example, only two or three months, the SF class usually does not improve. If you plan to deactivate your vehicle for more than 18 months and thus end the paused insurance, you will need a new car insurance policy upon re-registration, and the classification of the SF class will need to be renegotiated. Clarify these details to avoid being surprised by higher premiums after the pause.
Requirements and exclusions: When does the deferred insurance not apply?
To successfully suspend your car insurance, certain conditions must be met. The most important is the official deregistration of the vehicle with the registration office. Additionally, the insurance contract must have generally existed for at least one year before a contribution-free suspension insurance is granted. If the deregistration and planned re-registration are less than two weeks apart, the suspension insurance often does not come into effect. Another important point is the parking location: During the suspension period, the vehicle must be parked on private, enclosed property or in a garage and must not participate in public road traffic. There are also vehicles for which suspension insurance generally does not apply or only under certain conditions. These often include mopeds or caravan trailers. For vehicles with short-term license plates, regular suspension insurance is usually not provided, as the contract duration is initially limited to less than one year. Our expert tip: Be sure to clarify with your insurer before deregistration whether suspension insurance is possible for your specific vehicle and contract arrangement, and what exact conditions apply. This helps avoid unexpected gaps in insurance coverage or costs. Meeting these requirements ensures you benefit from the advantages of suspension insurance.
Costs and Savings: What financial aspects should you consider?
Putting your car insurance on hold is primarily a cost-saving measure. During the dormant phase, which can last up to 18 months, you pay no regular insurance premiums for your car insurance. This is at least the case if your contract has been in place for at least one year. The dormant insurance itself is then free of charge. Costs only arise from deregistering the vehicle with the registration office, which usually amounts to between ten and 30 euros. If your contract has not yet been in place for a year or if you want protection beyond the standard dormant insurance, in exceptional cases a fee-based dormant insurance can be taken out. This can be relevant, for example, if you buy a vehicle but do not wish to register it until a few months later. The potential savings from the dormant insurance can be significant, especially with expensive insurance rates or longer periods of inactivity, such as twelve months. However, bear in mind that during the dormant phase, no car tax is due either, which provides additional financial relief. Weigh the savings against the limited coverage to make the right decision for you.
Alternatives and additions: What to do if the quiet insurance doesn't fit?
Not in every situation is putting your car insurance on hold the optimal solution. For example, if you only lay your vehicle up for a few weeks, the effort of deregistration and re-registration might not correspond with the savings, especially as there is often a minimum lay-up period of two weeks. For vehicles that are only used in certain months, such as convertibles or motorhomes, a seasonal licence plate is often the better option. Here, lay-up insurance for the months outside the season is automatically integrated into the contract, and the vehicle doesn’t need to be deregistered and re-registered each time. The registration period here is at least two and a maximum of eleven months. If you sell your vehicle and immediately purchase a new one, lay-up insurance is unnecessary, as the old contract ends with the sale and a new contract is concluded for the new vehicle. If you intend to decommission your vehicle permanently and scrap it, you will need a certificate of destruction for the registration office; the insurance will then also end. Our expert tip: For very short interruptions in use or if you need full insurance coverage, including comprehensive, continuously, putting it on hold might not be ideal. In such cases, it might be more sensible to continue the contract regularly or to check special tariffs for low-mileage drivers. Individual advice helps find the best option for your specific needs.
Your next step towards optimal protection
Laying up your car insurance offers an excellent way to save costs when your vehicle is temporarily not in use. With the right knowledge about requirements, duration, and coverage, you can make the most of this option. Remember to check your insurer's specific conditions and choose the storage location carefully. At nextsure, we understand that every insurance situation is unique. We are happy to help you find the right solution to suit your needs, whether it's lay-up insurance or another form of digital insurance cover.
Request your individual risk analysis now: Have your insurance situation reviewed for free and receive concrete optimisation suggestions.
More useful links
Wikipedia provides a comprehensive overview of the topic of car insurance.
On Wikipedia, you will find detailed information about the no-claims discount and how it works.
Finanztip offers practical advice on reactivating your no-claims bonus after a break.
The Kraftfahrt-Bundesamt (KBA) provides official statistics on the vehicle fleet in Germany.
Statista offers comprehensive statistics on the passenger car fleet in Germany.
The Umweltbundesamt provides data on transport infrastructure and the vehicle fleet in Germany.
FAQ
Do I need to actively cancel my car insurance to put it on hold?
No, you do not need to cancel your car insurance. The suspended insurance automatically comes into effect as soon as your insurer is informed by the registration authority about the deregistration of your vehicle.
Can I drive my car while the insurance is suspended?
No, while the insurance is suspended, the vehicle is not allowed to participate in public road traffic. Exceptions might include trips to the registration office or for a main inspection, if they have been approved.
Where should my car be parked while the insurance is suspended?
Your vehicle must be parked on a private, enclosed area or in a garage while the insurance is suspended. It must not be parked in public spaces.
What happens after the suspension of the insurance ends?
The suspended insurance ends automatically after the agreed maximum duration (e.g., 18 months) or if you re-register the vehicle beforehand. If you do not re-register it in time, the insurance cover will lapse.
Does the suspended insurance affect my vehicle tax?
Yes, if your vehicle is deregistered and the insurance is suspended, you do not have to pay vehicle tax for this period.
Is a suspended insurance also relevant for seasonal license plates?
Yes, for vehicles with seasonal license plates, the suspended insurance is automatically included in the contract for the period outside the season. The vehicle is then partially comprehensively insured without any premium during the non-operating period, provided there was previously a comprehensive insurance.
