If you want to change your car insurance, you usually have to cancel the current contract by November 30th. Exceptions to this are contracts with a term of less than one year or contracts that can be terminated monthly from the outset. But even those who missed the November 30th deadline can still terminate the contract in very many cases. Namely, if the insurance increases the contributions, exists for the insured Special right of termination. For four weeks upon receipt of notification of the premium increase. Thats how it works!
Special right of termination due to premium increase
If the insurance increases the premiumwithout the scope of insurance cover changing accordingly, the insured can terminate the contract. The period of notice is one month upon receipt of notification of the premium increase. The annual contribution invoice usually serves as notification. But you should look very carefully. Often a premium increase cannot be seen at first glance. Because if the insured has driven without an accident, the no-claims discount increases for the new year. The bottom line is that you then pay less, even though the insurance has actually become more expensive. Wolfgang Schütz from the comparison portal Verivox explains: “If the motor insurer does not pass the entire discount on to the customer, there is a price increase behind it.” One then speaks of a hidden or hidden premium increase.
So that a premium increase is easier to recognize, most insurance companies include one in the premium calculation Settlement contribution at. This comparison contribution is only determined fictitiously. It shows how high the previous post with the new (future) no-claims discount would have failed. If the comparative contribution is lower than the contribution to be paid in the future, the contribution has been increased (see example in the table).
Example of a hidden premium increase
However, some motor vehicle insurers do not include a comparative contribution in their premium statement – they are not obliged to do so. It is true that they must refer to the right of termination in the premium invoice – if one exists. But this note can often be found in the small print on the back of the invoice.
In order for the special right of termination to exist, it is enough if a component of the vehicle insurance (liability or comprehensive insurance) becomes more expensive. The other component should even be cheaper. And the special right of termination also exists if the premium remains the same, but the scope of the insurance cover is reduced. In practice, however, this happens much less often than a premium increase.
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Deadline for the special right of termination
Even with the special right of termination, the period is four weeks – in fact upon receipt of notification of the premium increase. Many motor insurance companies do not send the annual premium invoice until November or even later. Those who only receive their contribution invoice in the course of December therefore still have the right to special termination retrospectively at the turn of the year in January.
Further reasons for a special termination
In addition to the premium increase, there are other reasons that enable the policyholder to terminate extraordinarily:
• accident: A four-week special right of termination applies after a loss that has been settled by the insurance company. The prerequisite is that the claim settlement has been officially completed (await the insurer’s decision). The right to special termination also applies here to the insurer.
• Vehicle change: If you buy a used car privately, you first take over the car insurance of the previous owner. A special right of termination applies four weeks after purchase. If you sell your car yourself, the insurance is transferred to the new owner with the sale. If a car is deregistered, the insurance contract automatically expires after a non-contributory rest period.
When the special right of termination does not apply
In some situations, the special right of termination does not apply despite a premium increase in the motor vehicle insurance. This is especially the case if the policyholder is responsible for changing the premium himself. For example, if the regional class increases due to a change of residence or parameters of the motor vehicle insurance (e.g. mileage, registered drivers) have been changed. Or even if the insured person has been downgraded to the no-claims class. If the amount increases due to an increase in the state insurance tax, special termination is also not possible.
Pay attention to formalities when terminating
Regardless of whether ordinary termination or extraordinary termination in the case of special termination rights: If you want to be on the safe side, you always send the termination as registered mail with acknowledgment of receipt – even if termination by fax or e-mail would be possible according to the insurance company’s terms and conditions. In the event of any discrepancies, it is always possible to prove that the termination was sent on time and reached the recipient. Important for the special right of termination: Make express reference to the reason for the termination in the letter of termination (for example: special right of termination due to premium increase). Otherwise, the insurance company can refuse to cancel after November 30th.
