In some situations you have a special right to terminate insurance contracts. Then you don’t have to wait for the termination date, which is usually annual.
The essentials in brief:
- Does the insurance company increase your premiums, but don’t benefits increase accordingly? Then you can terminate the contract at short notice.
- It works similarly if you sell the insured item (e.g. a car or a house). Or if you move and come to a more expensive tariff zone with household insurance.
- However, there are deadlines for terminating for such reasons – you usually have to act quickly.
In some cases you can terminate insurance contracts early: If the insurer increases the premiums but no longer grants benefits. And if you no longer own the insured item or have to pay more after moving. We describe here how this works and which deadlines have to be observed.
INFORMATION! Insurance policies can normally be “properly” terminated once a year before the contracts are automatically renewed. There is also always a right of termination if an insured event has occurred. We have put together in this article how both works – normal termination and in the event of damage .
TERMINATION DUE TO PREMIUM INCREASE
Does the insurer write to you that the premiums will increase – without the sums insured increasing accordingly? Then you have a so-called “extraordinary right of termination”. If you decide and act quickly, you can cancel the insurance at short notice without having to adhere to the usual deadlines. The principle goes even further: if your insurance premium remains the same, but the insurance company wants to reduce the coverage , you can also give extraordinary notice. Such a termination must be received by the insurer no later than one month after the announcement of a premium increase . It becomes effective at the point in time at which the higher premium would have to be paid.
In private health insurance, the period is two months after receipt of the notification of increase . Incidentally, the possibility of termination does not only exist in the case of health insurances if the premium is increased, but also if the annual deductible is increased.
ATTENTION: There are contracts in which the contributions increase regularly, but the insurance also pays more. For example, with occupational disability insurance (and can also be very useful). If the premium factor increases by the same amount as the total factor, you have no extraordinary right of termination. You get more for your higher contribution. Then only an ordinary termination is possible.
TERMINATION IN CERTAIN LIFE SITUATIONS
Even if you move or sell your car or house, you have the opportunity to withdraw from certain insurance contracts early.
If you move to another city, you can cancel the home contents insurance if the contribution increases due to the assignment to a new tariff zone. Notice of termination must be received by the insurer no later than one month after the increased premium invoice has been sent . It then becomes effective one month after receipt by the insurance company. When selling a house, the buyer (not the seller), the homeowners’ notice. And only if he is entered as the owner in the land register . The one-month notice period starts at this point.
Anyone who buys a car and has not previously deregistered it will initially also take over the insurance contract that is valid for the vehicle. However, the new owner can take out a new policy with a change of registration. The previous insurance contract then ends automatically.
IMPORTANT: If you are selling your car, we advise you to de-register it yourself with the registration office before selling it. This also ends the insurance contract and you will be reimbursed for any excess amounts paid. In any case, you should write down when the car is handed over. The obligation of the buyer to change the registration immediately should also be agreed in the sales contract. Why you should take care of it so carefully: If the buyer causes an accident before re-registering, your insurance company will have to pay for the damage and an upgrade may occur.
When the policyholder dies, some insurance contracts end automatically, while others can be taken over by the heir . For example, personal liability insurance ends with death, provided that individual insurance existed. In the case of family insurance, the co-insured persons enjoy insurance cover until the next premium is due, unless the contract is continued by the heir. A car insurance passes to the heirs of the car.