What does suspending auto insurance mean?
When you suspend your car insurance, you are essentially freezing the insurance. The insurance will be terminated on the date of sale. As soon as you have a car registered in your name again, you can reactivate the insurance. You do not need to apply for new insurance. It is simply a matter of adding the new car to the policy. This makes it very convenient.
After selling your car, you will receive a certificate of indemnification from the buyer. You can use this to terminate orsuspend yourcar insurance. In most cases, it is preferable to terminate the car insurance. This is because you will receive a refund for the excess premium paid, and when you buy another car, you will compare insurers again anyway. It is likely that you will find a better deal in terms of conditions and premium with another insurer for your newly purchased car.
Why is terminating better than suspending?
You choose the best car insurance after a thorough comparison. Maybe insurer X is the most suitable option for your old car, but not for the new one. If you go for the highest quality at the lowest premium you are going to compare again for a new car as well. Because of this, suspending the car insurance doesn't make sense. For the new car, you still have to recalculate what you owe monthly or annually for the other car.
What happens to your claim-free years upon termination?
After termination, the insurer issues a policy showing the number of claim-free years accrued. When insuring another car, you can re-enter these years. Please note that the accumulated claim-free years only remain valid for three years. There are even insurers who use a shorter period. After this period, insurers strangely enough no longer take the claim-free years into account. As a result, you will lose your right to a discount.
When do you choose to suspend?
Motorists who have accumulated negative claim-free years in their current insurance policy are often better off suspending their car insurance rather than terminating it. Negative claim-free years are built up by claiming at-fault losses. If you do terminate your car insurance, you may run into the problem of not being able to take out new insurance. This is because many insurers are not open to insureds with a bad claims history. Policyholders with criminal records may also run into the same problem.
Related pages about car suspension
Never underinsured
Put together your own package
A wide range
We compare all insurers for you, saves time again
Help from our experts
Can't figure it out? Our experts are always ready to help you
We can be reached via chat, WhatsApp, phone or email
Questions? Contact us if you want to know more.
We are here Monday to Friday from 08:00 to 18:00.