How to cancel insurance properly: car & life insurance

Find the deadline first, then cancel

Insurance policies have different notice periods – they are in your contract and on the policy document. Commonly: cancellation with three months' notice to the end of the insurance year. The insurance year is often not the calendar year, but the date the contract began.

Rule of thumb: always read the specific contract clause instead of relying on experience with a different insurer.

Cancelling car insurance

Car insurance (liability and comprehensive) can generally be cancelled with one month's notice to the end of the insurance year – usually 30 November, so you can switch on 1 January. If you benefit from a no-claims discount, you should have firmly planned the new provider before cancelling.

• Regular cancellation: one month to the end of the insurance year (often by 30 Nov for the switch on 1 Jan).
• Special right of termination after a premium increase: usually one month after the adjustment to terminate extraordinarily at the increase date.
• Switching mid-year: the new provider often takes over the cancellation when you apply – you don't have to cancel the old policy yourself.
• Caution: car insurance running mid-year cannot simply be ended with one month's notice – only at the regular deadline or via the special right of termination.

Cancelling life insurance: calculate first

With a capital-building life insurance, cancelling is usually a loss-making business: you receive the surrender value – i.e. less than the sum of your contributions, especially in the first few years. Anyone who has paid in for only a few years often loses a considerable part.

• Cancellation only at the end of the insurance year or at the end of the contract – check the period in the contract.
• Alternative 1 – paid-up policy: you stop paying and the contract “sleeps” with a reduced benefit promise.
• Alternative 2 – sell: existing policies can be sold to professional buyers (second-hand market for life insurance).
• Alternative 3 – pause contributions: many plans allow a contribution pause when money is tight.
• Key figures for the decision: surrender value, guaranteed value, maturity benefit and final bonus – the worked example in your insurer's letter shows what an exit costs.

Cancel in writing and with proof

Insurance cancellations require written form and should be delivered in a verifiable way. A simple email is often not legally sufficient if the contract expressly requires text form with a handwritten signature. Safe options: registered mail or a personally delivered letter with confirmation of receipt.

Include the policy number, the desired end date and a request for written confirmation in the cancellation.

Before you cancel: plan the switch

Insurance cover should continue seamlessly. Only cancel once the new contract is signed and cover is confirmed. A single day without liability or car insurance can be expensive – and running car insurance must never be allowed to lapse due to the mandatory insurance requirement.