Can I Cancel My Car Insurance? - Arkwright Insurance

Can I Cancel My Car Insurance?

Purchasing car insurance is not merely a massive expense, yet a big commitment, last for one year (or even longer should you automatically renew). However things can change: perhaps you discovered a less expensive plan elsewhere, wish to sell your car, or maybe don’t want to be tied down to your car insurance plan anymore. In this particular post, I will clarify all you need to know, from the right way to cancel car insurance, car insurance policy cancellation charges, as well as the essentials you must know.

  • Notice period and closing date
  • Canceling by fax and e-mail
  • The advantage of the online broker
  • Extraordinary termination for special reason and more

Notice Period And Closing Date To Cancel Car Insurance

At what date is a regular termination of the car insurance possible? Can be terminated at the end of the insurance year with a term of one month. If the contract is not terminated, the deal is automatically renewed for another year. In the case of car insurance, the insurance year runs for most contracts until 31 December – on 1 January the new insurance year begins.

Even if the contract was concluded approximately on 1 August, it will only run until 31 December of that year and then be extended for a whole year. The deadline for termination of the contract is 30 November. On this day, the insurance policy must be terminated at the latest to be effective. The date of dispatch (postmark) does not matter!

Note: Some insurance companies offer contracts with a term of less than one year. In the case of such contracts, the duration of the contract is 12 months, i.e., from 1 August through 31 July of the following year, regardless of the calendar year, the termination should then have taken place by 30 June.

As the insured can not terminate at the end of the year, they can not benefit from the price war among the insurance companies. For the main change over period in November, the insurance companies often advertise with particularly favorable tariff offers to new customers.

Equipment Breakdown Insurance

Special Right

When can I cancel car insurance? In addition to the regular termination at the end of the insurance year, there are various occasions which are connected with a special termination right:

  • Contribution Increase: Increasing the contributions to your motor insurance, you have the right to cancel. Often, the contributions increase, for example, because your vehicle type has slipped into another type class due to the damage statistics or the risk classification of your approval district has changed (regional keyword class). In any case, the insurance company must inform you in writing about an increase in the contributions.

 As a rule, this is done with the annual contribution calculation. Read the invoice carefully and compare it with the previous year.

Sometimes a hidden contribution increase can occur: the contributions have been increased, but the bottom line is that you pay less than in the previous year because your loss-free allowance has also increased. In this case, you have the right to extraordinary termination of the contract. The notice period is four weeks as to cancel car insurance after receipt of the notification.

  • After a loss: After every loss, you report to the insurance company, you have the right to terminate and change the insurance. Regardless of whether the insurance company is taking the damage or not: However, they can not terminate until the insurance has acknowledged or rejected the liability to compulsory liability, or the negotiations have been concluded. From then on you have a month time to cancel car insurance contract.

What happens during the vehicle change? If you buy another car, you do not have to insure it with your previous insurance, but you can look for a new supplier. The insurance of your old car passes to the buyer at the sale. As soon as he submits to the licensing authority the insurance certificate of another insurer, the old contract is deemed to have been terminated. You must notify the seller of your insurance.

Can Also Be Canceled By Fax And E-Mail

How should the notice be formulated? The subject line should be Termination of car Insurance. The number of the insurance certificate and the official license plate should be indicated. It is also important to state the reason for the termination – for example, termination of the insurance year in due time, special cancellation right for a contribution increase or special right to cancel car insurance due to a claim. Also, always ask for confirmation of termination. Do not forget the date and signature!

The Advantage Of Using a Broker To Cancel Car Insurance

Whoever uses the service of using a broker such as Arkwright Insurance Brokers has the advantage of not having to terminate his or her fare personally. If you give us your call request by phone, fax or e-mail, we will inform you of the next possible termination date and forward your termination directly to the insurance company in due time.

Extraordinary Termination For Special Reason

However, an insurance policy can also be terminated immediately for a special reason beyond the deadline. This is then followed by an extraordinary termination. The contractual relationship may be terminated, for example, following a claim irrespective of the term of the contract and the period of notice given. Important: both insurers and insured persons are entitled to this extraordinary termination in the event of damage.

Here, too, both parties have to adhere to certain rules as to cancel car insurance, and so the notice of termination must be submitted to the insurer no later than one month after the termination of the compensation negotiations. After that, the regulated term of the contract including notice period applies.

Template: Here Is A Sample Notice

Does the termination have to be done by letter or is it also fax or e-mail? Please refer to the General Insurance Conditions (GTC) of the insurance company. There you can see whether the cancellation has to be made in writing (letter) or text form (fax, e-mail).

If you want to be safe, send the cancellation as registered mail with a smile. If there are inconsistencies, you can easily prove that the letter has arrived at the insurance company. However, it should be noted that the date of receipt of the insurance is decisive for compliance with the notice period, not the postmark on the letter.


The Arkwright Insurance Brokers welcome letters as to cancel car insurance, however, cannot answer individually. Email us; we deliver all kind of traditional insurance coverages, services, and products and even employing the very best and newest technologies to offer our customers the kind of info including services they should have regarding any insurance.

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