Changing policyholder: your guide with a sample letter for a smooth transition
07.04.25
10
Minutes
Katrin Straub
Managing Director at nextsure
A change of policyholder can be necessary in many life situations, whether due to marriage, divorce or the sale of an insured item. This process requires care to ensure that insurance cover is maintained without interruption. Find out here how to proceed and use our sample letter for the change.
The topic in brief and concise terms
A change of policyholder always requires the consent of the insurer and both parties involved (the previous and the new policyholder).
Use a detailed sample letter to submit all necessary information correctly to the insurer and speed up the process.
Please check in advance whether the switch will change premiums or contract terms, especially for personal tariffs or the transfer of no-claims discounts.
Quick overview: policyholder change in brief
A policyholder change transfers an existing contract to a new person. This often happens when property or vehicle is sold. The insurer's consent is usually required. Both parties, old and new, must agree to the change. An informal request is often sufficient, but a detailed sample letter creates clarity. This step ensures the continued cover under the new policyholder.
Practical examples: When changing the policyholder makes sense
In everyday life, there are numerous situations that make a change of policyholder necessary. A common reason is the sale of an insured item, such as a car or property. In this case, the insurance often transfers to the new owner. Family changes, such as marriage, divorce or when a child comes of age and, for example, is to take over the car insurance, can also require a change. Make sure the new policyholder is aware of all obligations. With dental supplementary insurance, the son might want to take over the policy himself after completing his training. A change can also become relevant in business transfers, when policies have to be rewritten in the name of the new owner. It is important to understand the difference between the policyholder and the insured person. The policyholder is the contracting party of the insurer. The change ensures that the right person assumes responsibility and pays the premiums. This avoids complications in the event of a claim, which can quickly lead to financial disadvantages of several thousand euros.
The process: step-by-step guide to switching
Changing the policyholder requires a few formal steps. First, the insurer must be informed about the planned change. This usually requires a written application. This application should include the consent of both the current and the new policyholder. Many insurers provide forms for this or accept an informal application containing all the necessary details. A sample letter for changing the policyholder can be very helpful here. Please note the following points:
Inform your insurer at an early stage about the planned change.
Gather all necessary documents, such as the policy number and the details of both parties.
Complete the application carefully and have it signed by both parties.
Clarify whether the premium or the terms will change as a result of the switch.
Wait for the insurer's written confirmation before considering the change complete.
The insurer's consent is a crucial point. Under certain circumstances, for example if there are doubts about creditworthiness, they may refuse the new policyholder. A properly documented process with all signatures helps prevent misunderstandings later on.
Legal basics: What you need to know
The Insurance Contract Act (VVG) forms the legal basis for insurance contracts in Germany. When the policyholder changes, § 415 of the German Civil Code (BGB) on assumption of debt often applies, which requires the consent of the creditor, i.e. the insurer. The insurer must agree to the change, as it has a legitimate interest in knowing who its contractual partner is. Without the insurer’s consent, the transfer is not effective. The rights and obligations under the contract, such as the obligation to pay premiums and the right to benefits, pass to the new policyholder. It is important that the new policyholder is informed of all contract details, in particular any no-claims discounts for motor vehicle insurance. In the case of life insurance, the transfer may be regarded as a gift and have tax implications. A breach of the duty of disclosure by the original policyholder can also affect the new policyholder. Transparency between all three parties – the former policyholder, the new policyholder and the insurer – is therefore essential. A clearly worded sample letter for changing the policyholder helps to convey all relevant information correctly.
Sample letter: template for the application to change the policyholder
A well-formulated application is crucial for a smooth transfer of the policyholder. Using a template can help ensure that no important details are forgotten. Such a sample letter should contain at least the following information:
Full names and addresses of the previous and the new policyholder.
The insurance number of the contract concerned.
The date on which the transfer is to take effect.
A clear declaration that all rights and obligations are transferred.
The signatures of both parties (previous and new policyholder).
If applicable, the new bank details for collecting the premiums.
Here is an example of how such a letter might be structured. Please note that this is a general template and must be adapted depending on the insurer and the situation. Always check your insurer's specific requirements.
[]
[]
[]
[,]
Subject: Application for a change of policyholder for contract no. []
Dear Sir or Madam,
We hereby apply for [,], residing at [], and [,], residing at [], born on [], to change the policyholder for the above-mentioned insurance contract.
The change is to take effect on [,..äö].
Mr/Ms [] will take over all rights and obligations arising from the existing insurance contract from this date. The future premiums are to be debited from the following account: [,].
We kindly request written confirmation of the change of policyholder, stating the exact effective date.
Yours faithfully
[] []
This sample letter for changing the policyholder serves as a basis. For specific cases, such as a change of ownership for a residential building insurance policy, additional information may be required.
Expert tips: Avoid pitfalls and secure the benefits
When the policyholder changes, there are a number of points that require particular attention in order to avoid disadvantages. Our expert tip: clarify in advance whether the insurer agrees to the change and whether the terms will change. In motor insurance, for example, the transfer of no-claims discounts is an important aspect, and it can amount to several hundred euros per year. A direct transfer of the discount to any person is not always possible. Find out exactly what the conditions are, especially when it comes to the arrangement where the vehicle owner and policyholder are different people. For life or pension policies, a change can have tax implications or affect beneficiary entitlements. It is advisable to hand over the original policy and all endorsements to the new policyholder. Document the entire process in writing and keep copies of all correspondence. This can be crucial if disputes arise later. A careful review of the contract terms by the new policyholder is also recommended to ensure that the insurance cover meets their own needs. Sometimes it can make more sense to cancel an old policy and take out a new, more suitable one, rather than assuming an existing policy with potentially less favourable terms.
In addition to standard cases, there are situations that require special rules when the policyholder changes. One such special case is the death of the policyholder. In this case, the contract generally passes to the heirs, who must then decide whether to continue the policy, cancel it, or have it transferred into another person’s name. In the case of motor insurance, the contract is linked to the vehicle and does not end automatically when the policyholder dies. Another special case is a change in occupational pension provision when an employee changes employer. This often requires the consent of several parties and the assessment of transfer values. Special rules also apply to a takeover of car insurance within the family, for example from father to son, particularly regarding the no-claims bonus class. Our expert tip: check with your insurer for the exact procedures for your specific case. The notice periods and special cancellation rights can vary depending on the type of insurance and the contract. It is always advisable to take a look at the General Insurance Conditions (AVB). In complex cases, professional advice can be helpful in taking all aspects into account and finding the best solution.
Frequently asked questions about changing policyholders
Questions of a similar kind often arise around changing the policyholder. A common question concerns the costs: as a rule, the administrative act of the change itself is free of charge, unless extensive recalculations or risk assessments are required. Another question is whether the new policyholder retains the old contractual terms. Generally yes, but there may be adjustments for personal-rate tariffs. Many also ask whether the insurer can decline the change. Yes, that is possible if there are valid reasons, such as poor creditworthiness of the new policyholder. The consent of both contracting parties is always required. The length of the change process depends on the insurer, but usually takes only a few working days to two weeks after all documents have been submitted. It is important to know that cover remains in place during the change process, provided the premiums continue to be paid. For a smooth transition, a correctly completed template letter for changing the policyholder is a good first step.
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More useful links
The Consumer Advice Centre offers consumer tips on saving money on car insurance.
The Consumer Advice Centre provides information on the possibility of a quick switch to statutory health insurance.
The Consumer Advice Centre provides detailed information on switching from private to statutory health insurance.
The Consumer Advice Centre NRW gives advice on insurance consultations and explains what is necessary and sensible.
The Insurance Ombudsman is an independent arbitration body for disputes between policyholders and insurance companies.
The Private Health Insurance Ombudsman explains the tasks and purpose of its arbitration body for private health insurance.
The Tagesschau offers a news article with information on switching car insurance.
FAQ
How long does it take to change the policyholder?
The processing time for a change of policyholder can vary, but is usually a few working days to up to two weeks after the insurer has received all completed documents.
Does the premium change when the policyholder changes?
That depends on the type of insurance and the tariff. For person-related tariffs (e.g. motor insurance with no-claims discount), the premium for the new policyholder may change.
What happens if the insurer does not agree to the switch?
If the insurer does not agree to the change (e.g. because of the new policyholder’s insufficient creditworthiness), the contract remains with the previous policyholder or may need to be terminated, if necessary.
Does the insured person have to consent to the change of policyholder?
If the insured person is not also the policyholder, their consent to a change of policyholder is generally not required, unless there is an irrevocable beneficiary designation or specific contractual clauses provide for this. The policyholder is the contracting party.
Can a change of policyholder be made retrospectively?
A policyholder change cannot usually take effect retrospectively. Insurers’ forms usually provide for a transfer with immediate effect or on a future date.
What role does the sample letter play in a policyholder change?
A sample letter serves as a template and helps ensure that all the necessary information for the application for a change of policyholder is included, which can make the process easier and faster.
