Selling a Car: How Do I Cancel My Car Insurance?
Car insurance is an agreement between you and an insurer. With car insurance, both parties sign a contract that outlines the rights and obligations that both the insurer and you must adhere to. It is, of course, possible to cancel your car insurance, but you cannot do so at just any time. We’d like to explain this situation to you. You can cancel your car insurance at three specific times, namely:
1
As of the contract expiration date
In the past, many insurance companies required a two-month notice period, but this has no longer been permitted since January 1, 2010. In general, insurance policies can be canceled on a daily basis after the first 12 months with a one-month notice period. There are even insurers that do not require a notice period at all, allowing the policy to be canceled immediately. You can find the exact terms in the policy conditions.
2
In the event of changes to the terms and conditions or a premium increase
If the insurer has raised the premiums or made changes to the terms and conditions that are unfavorable to you, you have 30 days to cancel the policy. You can cancel your policy at no cost as of the contract expiration date or with one month’s notice.
Please note: This does not apply if the premium increase is the result of a claim or a change that specifically affects you. The increase or change must apply to everyone who has the same insurance policy with this insurer.
3
When selling your car
Finally, you can cancel your policy (early) once you’ve sold your car. Notify your insurer or broker of the date of release from liability; the insurance will then end on the date stated on the certificate of release from liability. Send a copy of this certificate as proof within 30 days. If you do so later, the insurer may charge you for one additional month’s premium.
When you buy a new car, you can also report a change to your current policy instead of canceling the insurance entirely. That way, you keep your policy and don’t have to take out a completely new insurance policy.
Always read the policy terms and conditions carefully
The terms and conditions an insurer applies for canceling a policy vary from insurer to insurer. They may even differ from one insurance policy to another. That’s why it’s very important to read the policy terms and conditions before you purchase (auto) insurance. The policy terms and conditions outline all the terms that apply to your insurance. This means that the terms for canceling your policy are also described there. If you haven’t reviewed the policy terms and conditions (in full) beforehand, you can, of course, consult the document when looking for the terms regarding cancellation. Contacting your insurer is, of course, also a good option.
Suspend Car Insurance
As long as the car is registered in your name, it must be insured. In addition to canceling your auto insurance, you can also choose to suspend it. In that case, the insurance is temporarily suspended. As soon as you have a car registered in your name again, you can reactivate the insurance. This can be done immediately; there is no notice period.
Putting your auto insurance on hold instead of canceling it is a particularly good option if you’ve accumulated negative claim-free years under your current policy. You accumulate negative claim-free years by filing claims for at-fault accidents. When you cancel a policy, you may run into the problem of being unable to purchase a new policy. This could be due to a poor claims history or because you have a criminal record.
Related pages about canceling your auto insurance
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