Reimbursement of car insurance after deregistering a car
Deregistering a car often raises questions, especially when it comes to existing car insurance. What happens to the insurance when the car is deregistered? Do you get your money back if you have paid the premiums in advance? And what applies if the vehicle is sold or decommissioned? In this comprehensive guide, we answer the most frequently asked questions and clarify how to proceed when deregistering a car in order not to suffer financial losses.
Is my car insurance automatically cancelled when I deregister the car?
As soon as a vehicle is deregistered, in most cases the contract with the car insurance ends automatically. The registration offices usually inform the insurance company about the deregistration independently. This means that no separate termination is necessary. Still, there are some details to keep in mind to make sure everything goes smoothly.
Automatic cancellation: How it works
Car insurance is tied to the registration of the vehicle. If the car, motorcycle or motorhome is deregistered or decommissioned, the insurance contract also ends automatically. However, this automatic termination only applies if the deregistration is duly carried out via the registration office. If you do not deregister your vehicle, the contract remains in place and you are still obliged to pay the premiums.
Automatic cancellation includes liability insurance as well as partial or fully comprehensive insurance. As soon as the insurance company is informed by the registration office, it suspends the contract. It does not matter whether the vehicle has been sold, scrapped or only temporarily immobilized.
Will I get a refund of the car insurance after deregistering my car?
Yes, when you deregister a car, you can expect a refund of the car insurance, as long as you have paid the premiums in advance. This refund is calculated for the remaining term of the insurance contract, from the day of cancellation.
Many insurers calculate the premiums for a fixed period of time (e.g. annual, semi-annual or quarterly). If the vehicle is deregistered before the end of this period, you will receive a refund for the remaining months.
How is the refund calculated?
The refund depends on how long the contract still runs. Insurance companies usually calculate the premiums to the day from the time of deregistration. So if you deregister your car on the 15th of a month, the insurance company will pay back the premium from that date.
The exact repayment also depends on your type of insurance. While liability insurance ends in any case, there may be individual regulationsfor supplementary insurance such as comprehensive insurance. It's best to take a look at the insurance contract.
Do I have to actively request the refund?
No, usually the refund is automatic. As soon as the registration office forwards the deregistration to the insurance company, the reimbursement is initiated. Nevertheless, it is advisable to ask the insurance company after deregistering whether all formalities have been clarified.
Can I cancel car insurance without deregistering my car?
It is possible to cancel the car insurancewithout deregistering the vehicle. This occurs in various situations, such as when changing insurance or selling the vehicle. Here are the most common scenarios:
If you want to switch to another provider, you can cancel your existing contract without deregistering your car. However, you must ensure that the new contract follows seamlessly, as there is an insurance obligation. Note the notice period, which is usually one month.
Special right of termination
Under certain circumstances, you have a special right of termination that allows you to terminate the insurance early:
Sale of the vehicle
When a car is sold, theinsurance is automatically transferred to the new owner. However, you can cancel your contract once the sale is complete. For this, you should submit the purchase contract and the deregistration confirmation as proof.
It is important that the insurance obligation always remains. If you cancel the contract without taking out new insurance or deregistering the car, you can get into legal problems.
How can I deregister my car from the insurance company?
Deregistering a car is a relatively simple process that is handled by the registration office. At many registration offices, you have the option of applying for the deregistration or deregistrationof your vehicle either online, by post or in person at the vehicle registration office. As soon as your vehicle is deregistered, the insurance company is automatically notified. Here are the steps in detail:
Checklist for unsubscribing
Deregistration procedure:
After deregistering, you will receive a written confirmation. You should keep this as it serves as proof of decommissioning.
What happens to car insurance in the event of a change of ownership?
In the event of a change of ownership, the existing car insurance remains in place for the time being and is automatically transferred to the new owner. However, the new owner has the right to cancel the insurance and switch to another provider. A period of four weeks after re-registration applies.
As a seller, you should make sure that the buyer re-registers the vehicle in a timely manner. As long as this has not been done, the contract will continue to be registered in your name. To make sure that you have no further obligations, you should have a confirmation of re-registration or deregistration.
Who deregisters the car with the insurance company?
The deregistration of the car from the insurance company is usually done automatically by the registration office. So you don't have to take action yourself. Nevertheless, it makes sense to inform the insurance company independently to ensure that the refund of the premiums is processed correctly.
If there are delays, you can send the deregistration confirmation from the registration office directly to your insurance company to speed up the process.
Deregistering a car has a direct impact on car insurance. The automatic cancellation of the insurance contract is an advantage that you can use without any additional effort. In addition, you are entitled to a pro-rata refund of the contributions if they were paid in advance.
If a change of insurance or a vehicle sale is pending, separate regulations apply, which are also easy to handle. It is important that all formalities are handled correctly in order to avoid legal and financial disadvantages. With the tips and information outlined here, you can ensure that the entire process goes smoothly. This will help you stay on top of things and avoid unnecessary complications – regardless of whether you sell your vehicle, decommission it or switch to another insurer.