Car insurance in Germany: how to switch before the 30 November deadline

Many drivers in Germany have until 30 November to cancel their car insurance and move to a new provider for 2027, according to The Local Germany. A Verivox analysis cited by the publication suggests cheaper offers are returning in parts of the market, so comparing policies now could lower your premium or get you better cover for a similar price.

What happened

The Local Germany reports that many car insurance policies follow the calendar year. To end a contract on 31 December, the cancellation must generally reach the insurer by 30 November. The date only applies when the insurance year ends on 31 December and the contract has a one-month notice period. Some insurance years start on the date the vehicle was registered, so their deadlines fall at other times of the year.

The publication says competition may be returning after three years of steep price rises. According to the comparison portal Verivox, new policies still cost an average of 2 percent more than a year ago across liability, partial and fully comprehensive insurance. In the cheaper part of the market, however, average prices fell by almost 2 percent. Among cheaper insurers, liability premiums fell by 1.2 percent, partial cover by 1 percent and fully comprehensive cover by 2.3 percent. Mid-market prices rose for all three types of cover.

Verivox notes that these figures refer to new policies, not existing contracts. Average prices for new policies are still more than 50 percent higher than in 2022, and repair and spare-part costs keep rising. Savings are therefore possible but not guaranteed.

What it means for you

Start by checking your policy document for the expiry date and the Kündigungsfrist (notice period). If your insurance year does not end on 31 December, the November deadline does not apply to you. The ADAC, Germany’s largest motoring organisation, says you can still leave at other times in some cases. Policyholders can generally cancel within one month of being told about a premium increase. This Sonderkündigungsrecht (special right of cancellation) may also apply after a claim has been settled. If you buy another vehicle, you can normally choose a different insurer.

Before you compare prices, make sure you know which type of cover you are comparing:

• Kfz-Haftpflichtversicherung (motor liability insurance) is compulsory. It pays for injury, property damage and financial loss you cause to other people.
• Teilkaskoversicherung (partial comprehensive insurance) is optional. It covers your own car against specified risks such as theft, fire, broken glass, severe weather and collisions with wildlife.
• Vollkaskoversicherung (fully comprehensive insurance) includes partial cover and also pays for accidental damage you cause to your own car, as well as vandalism. It can be particularly relevant for new, valuable, financed or leased cars.

Compare policies with identical cover and the same Selbstbeteiligung (excess). The ADAC also suggests checking how each tariff treats gross negligence, replacement value for a new car, rental cars abroad and downgrading after a claim. Enter your mileage, authorised drivers and overnight parking details accurately. A cheap tariff that assumes low mileage or garage parking could cost you more if you cannot meet those conditions.

The Verbraucherzentrale (consumer advice centre) says comparison portals may receive commission and may list only selected insurers and tariffs. It recommends using more than one source and contacting insurers directly. You can also ask your current insurer whether it has a cheaper tariff.

If you moved to Germany from abroad, ask how an insurer treats your overseas driving record. The Local Germany says some providers and brokers may accept claims-free histories from certain countries, but this varies by provider. Check which countries and documents your chosen insurer accepts.

The order in which you switch matters. The Local Germany sets out these steps:

1. Gather your current policy, renewal notice, vehicle details, annual mileage and your Schadenfreiheitsklasse or SF-Klasse (no-claims class).
2. If you have made a claim or have Rabattschutz (discount protection), ask your current insurer to confirm in writing which no-claims class or claims history it will report. The Verbraucherzentrale warns that internal discounts may not transfer.
3. Apply for the new policy and wait until it has been accepted. Insurers can still refuse optional partial or fully comprehensive cover, particularly for unusual or expensive vehicles.
4. Only then cancel the old contract, using a method your insurer accepts, and keep proof of delivery. The ADAC recommends Einschreiben mit Rückschein (registered post with acknowledgement of receipt).

After a normal switch, the new insurer will generally notify the vehicle registration authority, so you should not need to deregister your car.

What to watch next

The key date is 30 November for contracts that end on 31 December. Look out for any premium increase notice from your insurer, because it starts the one-month window for special cancellation. Since Verivox found prices falling only among cheaper insurers and rising in the mid-market, get several quotes rather than assuming a new contract will be cheaper.

Source: The Local Germany