November 30th is the deadline to cancel your car insurance and switch to another provider.
Consumers can save a lot of money with a smart switch.
Alexander Huber, CMO of the insurance platform Wefox, explains when it makes sense to look for a new provider and what you have to consider.
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Germany is an automotive country: around 66 million vehicles were registered at the beginning of the year. Anyone who drives a car must take out insurance. An annoying investment that costs a lot of money every year. Sometimes it pays to change insurers – because you can save a lot. Alexander Huber, Chief Marketing Officer of the insurance platform Wefox, explains how this works.
Until when can you change?
The deadline is approaching: Car owners can say goodbye to their insurance company by November 30th and switch to another provider. “This is practically the golden date for all insurers,” says Huber in an interview with Business Insider. Because as a rule, you commit yourself for a year beginning on January 1st. Most contracts have a one-month notice period. Therefore, the cancellation must be received by your insurer by the end of November at the latest.
If you miss the appointment, you can usually no longer change. In some cases, however, there is a special right of termination. This happens when the insurance premium increases, damage has occurred, the car is sold or the insurer changes the tariff structure.
Why does a change make sense?
“Basically, every driver can save money by changing insurance,” says Huber. Because many insurers are introducing new tariffs in year-end business. And these are often rated a bit cheaper. In order to attract new customers, the providers lower the prices. “Everyone wants to position themselves in order to tap a large market share,” says Huber.
How much can you save?
There is no general answer to this question. “There are insurers who advertise with up to 40 percent,” said the expert. How much you can really save depends heavily on the individual case. The cost of insurance is related to many personal factors that determine a customer’s risk of damage: for example, how much someone drives or whether the car is in a garage. As a rule, you can only save between five and ten percent, according to the expert.
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According to Huber, a change is worthwhile for those who pay more than 300 euros per year for their insurance. In general, the following applies: the longer a policyholder drives damage-free, the lower the savings potential when switching. “Someone who has been with an insurer for 35 years and has never had an accident doesn’t have to change anything,” says Huber.
Ultimately, the customer has to be guided by the price performance he gets when switching – and weigh up whether the switch is worthwhile for him.
How do you find the cheapest provider?
You can find several comparison portals such as Check24 or Verivox on the Internet. “There you can wonderfully test which insurance is individually best for you,” says Huber. You should watch out for so-called zero positions. These are advertising-supported spaces. The computers are only partially independent.
Huber recommends consulting a broker – because they have the best overview and a larger selection of tariffs than comparison portals. “Brokers are no rascals,” says the expert. In the event of damage, they can also help you as a mediator with the settlement. The best thing about it: The broker is free for you. Because, according to Huber, he receives his commission from the insurance company if the contract is successfully concluded.
What should you watch out for when changing?
A good policy should include the option of discount protection, a guaranteed cover letter for damage caused by animals to the car and protection against theft, vandalism and natural fire damage. “Then the insurance cover is sufficient,” says Huber. It is also important to consider how many drivers an insurance policy should cover or whether a provider waives a workshop commitment at no extra charge.
If you have found a new insurance and want to change, you should definitely pay attention to the termination formalities. With some digital insurers, this is done with one click. With other providers you have to cancel in writing. To be on the safe side, preferably by registered mail with acknowledgment of receipt. The rule of thumb is: Just as insurance policies are taken out, they can also be canceled.
Under no circumstances should you give false information about your no-claims class or conceal past accident claims. Because the insurance companies exchange information with one another. If you have been upgraded, you will have to pay more with a new insurer.
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