Cancelling accident insurance: notice periods, rights and smart alternatives for 2025
19.05.25
6
Minutes
Katrin Straub
Managing Director at nextsure
Are you thinking about cancelling your accident insurance? Many policyholders are unsure about deadlines and procedures. This article explains step by step how to cancel your accident insurance in the normal way or with extraordinary notice, and what you need to bear in mind.
The topic in brief and concise terms
The ordinary notice period for accident insurance is usually three months before the end of the contract; extraordinary cancellation is possible, for example, if premiums are increased without any additional benefits.
A notice of termination must be given in writing; keep proof of posting (e.g. by registered post with acknowledgement of receipt).
Before cancelling, check alternatives such as changing your plan or making the policy paid-up to avoid gaps in cover.
Cancelling accident insurance: Understanding the basics
Cancelling an accident insurance policy is a formal process with clear rules. Usually, the standard notice period is three months before the end of the insurance year. If you miss this deadline, your contract is automatically extended for a further year. It is therefore essential to know the exact main due date of your policy; often this is 1 January. Notice should always be given in writing, ideally by registered post with acknowledgement of receipt, so that you have proof. Before you compare and cancel your accident insurance, check your policy documents carefully. These contain all relevant information on terms and deadlines. Knowing these details is the first step towards a successful cancellation.
Ordinary termination: the standard way out of the contract
A proper cancellation of your accident insurance does not require any specific reason. You can simply give notice if the policy no longer suits your circumstances or you have found a better offer. The notice period is generally three months before the end of the insurance year. For policies with a term of one year, for example, starting on 1 October, the cancellation must be received by the insurer no later than 30 June of the following year. For policies with a term of more than three years, cancellation is often possible for the first time at the end of the third policy year, and then annually thereafter. It is important to submit the cancellation actively and in writing. Automatic termination usually only occurs in the event of the death of the sole insured person. Think carefully about whether accident insurance is necessary before you take this step.
Special right of termination: When you can terminate extraordinarily
Under certain circumstances, you can also cancel your accident insurance outside the standard notice periods. This special right of cancellation applies, for example, in the event of a premium increase by the insurer, without the benefits of the accident insurance improving. In this case, you generally have one month after receipt of the notification to terminate the contract without notice. Another reason for extraordinary cancellation can be the settlement of a claim. If you are dissatisfied with the settlement or the insurer refuses to pay the benefit, you can cancel within one month after completion of the process. A reduction in benefits while the premium remains the same can also justify a special right of cancellation. It is important to state the reason for the extraordinary cancellation in the letter.
The following situations often allow extraordinary cancellation:
Premium increase without a corresponding improvement in benefits (cancellation period: one month after notification).
After completion of a settled claim (cancellation period: one month after the decision on benefits).
Reduction in the insurance cover by the insurer without adjustment of the premium.
Cessation of the insured risk (e.g. giving up a dangerous hobby, if this was the basis for a specific tariff).
Always check your individual policy conditions (AVB), as these set out the exact rules. Knowing your special right of cancellation can help you respond flexibly to changes.
Cancellation by the insurer: that is also possible
Not only you as the policyholder, but the insurer can also terminate the accident insurance contract. A common reason for this is unpaid premiums. If, despite a reminder, the policyholder does not make payment within the set period, the insurer may terminate the contract without notice. Another reason for termination by the insurer may arise after the settlement of a claim. If the insurer has made a payment, it may terminate the contract with a notice period of usually one month . Incorrect information at the time the contract is concluded or fraudulent misrepresentation can also lead to the avoidance or termination of the contract. It is therefore important to always provide correct information and pay premiums on time. The exact conditions for this can also be found in your General Insurance Conditions.
Practical tips: How to formulate your notice of termination correctly
A cancellation of your personal accident insurance should always be made in writing. A simple letter is sufficient, but it should contain certain information to avoid misunderstandings. Always state your full name, address and policy number. In the subject line, clearly state that this is the “cancellation of the personal accident insurance”. A sentence such as “I hereby cancel my personal accident insurance with policy number [] in due time at the earliest possible date” is sufficient. In the case of extraordinary cancellation, you should explicitly state the reason for cancellation (e.g. “due to the premium increase from []”). Ask for written confirmation of the cancellation, stating the termination date. Sending it by recorded delivery with return receipt provides important proof that it was received within the notice period. A properly written insurance letter is crucial here.
Our expert tip: consider alternatives before cancelling. Sometimes a tariff adjustment or temporary premium suspension during financial hardship is a better solution than giving up cover altogether. A well-chosen personal accident insurance policy can be essential in an emergency.
Expert depth: Legal aspects and pitfalls
The Insurance Contract Act (VVG) forms the legal basis for cancellations. For example, Section 40 of the VVG governs the special right of cancellation in the event of premium increases. Bear in mind that cancelling dynamic policies with automatic benefit and premium adjustments often does not trigger a special right of cancellation for scheduled increases. Another point is the surrender value: with pure risk accident insurance, there is usually no premium refund on cancellation. The situation is different with accident insurance with guaranteed premium refund (UGBR); here, a (often small) surrender value may arise. In the event of the policyholder’s death, the contract ends automatically if they were the only insured person. With family policies, other insured persons can often take over the contract. Also find out whether your accident insurance is tax-deductible before you make any decisions.
After you have sent your cancellation, you should wait for the insurer's written confirmation. This should state the exact end date of the policy. Your insurance cover remains in place until that date. This means that accidents occurring up to the end of the contract remain insured and can still be reported. Use the remaining time to take out new, more suitable cover if necessary so that there is no gap. A cost comparison for accident insurance can be worthwhile here. Bear in mind that, for a new policy, health questions may become relevant again. Early planning is therefore advisable so that you remain continuously covered. Also consider whether accident insurance is mandatory or whether it is voluntary but important protection.
Consider alternatives to termination
Before you cancel your accident insurance for good, it is worth considering alternatives. Has the premium become too high? Ask your insurer about cheaper tariff options with adjusted benefits. Perhaps reducing the insured sum or foregoing optional add-ons is enough to lower the premium. In the event of temporary financial difficulties, some insurers offer a premium waiver for a certain period. During this time, the policy is suspended, and there is usually no insurance cover, or only limited cover, but the policy remains in place. Another option is to adapt the cover to changed life circumstances, for example if a high-risk hobby has been given up. Advice can often reveal tailored solutions here that are a better fit than an immediate cancellation. Sometimes an internal tariff change with your existing provider involves less than five per cent effort.
Possible alternatives are:
Changing to a cheaper tariff within the same company.
Reducing the insured sum or individual benefit modules.
Premium waiver in the event of payment difficulties (often associated with restrictions on benefits).
Adjusting the contract to changed risk conditions (e.g. giving up extreme sports).
Carefully reviewing these options can help you remain insured without keeping the financial burden unnecessarily high. This is particularly relevant when you consider how quickly an accident can happen, with consequential costs of over ten thousand euros.
nextsure: Your partner for tailored protection
Ending an accident insurance policy is an important step that should be considered carefully. At nextsure, we understand that life circumstances change, and with them the need for insurance cover. Our mission is to offer you comprehensive, tailored protection solutions as a digital insurance portal. We help you find the right cover, precisely tailored to your needs. With our expertise in niche insurance and our fully digitalised process, we make insurance simple and easy to understand. We offer expert advice to analyse your current situation and identify opportunities for optimisation. This ensures that you not only cancel correctly, but are also optimally protected in the future. Use our experience for your security.
Request an individual risk analysis now: Have your insurance situation checked free of charge and receive specific suggestions for optimisation.
More useful links
German Social Accident Insurance (DGUV) provides statistics and facts on workplace accidents and occupational diseases in Germany.
Federal Statistical Office (Destatis) provides statistics on causes of death, including accidents, in Germany.
Laws on the Internet provides the text of the German Insurance Contract Act (VVG).
Federal Institute for Occupational Safety and Health (BAuA) publishes statistics on fatal workplace accidents in Germany.
German Pension Insurance provides information on the rehabilitation services it offers.
Federal Ministry of Health provides information on medical care and the benefits of health insurance in Germany.
Laws on the Internet contains the text of the German Occupational Health and Safety Act.
FAQ
What is the standard notice period for accident insurance?
The standard (ordinary) notice period is usually three months until the end of the policy year. You can find the exact notice period in your contract documents.
When can I cancel my accident insurance outside the normal notice period?
A special right of cancellation exists, for example, in the event of a premium increase without a corresponding improvement in cover, after a settled claim, or if the insurer reduces the benefits. The period is then usually one month.
Does the accident insurance need to be cancelled in writing?
Yes, a termination notice should always be in writing. It is advisable to send it by registered mail with return receipt, in order to have proof.
What happens if I miss the notice period?
If you miss the standard notice period, your contract is usually extended automatically by another year. You can then only give notice at the next regular termination date.
Does accident insurance automatically end in the event of death?
Yes, if the policyholder is the only insured person, the contract ends automatically on their death. For policies with several insured persons (e.g. a family), other rules often apply.
Are there alternatives to cancelling my accident insurance?
Yes, alternatives can include an internal tariff change, a reduction in the sum insured or a temporary premium suspension. It is best to speak to your insurer or an independent adviser about this.
