Changing vehicles without a gap in cover

Changing vehicles does not automatically end your cover. You can insure the new car with your current insurer or with another provider. Your no-claims discount (Schadenfreiheitsrabatt) is kept either way, although the premium may still change.

Transfer or insure afresh

Many insurers transfer the existing contract to the new car. The contract is reclassified: the vehicle type class, regional class and vehicle value change, while your no-claims discount moves across unchanged. You are not tied to your current insurer, though. You can insure the new vehicle with any insurer and take your no-claims class with you. The order of steps matters. To register the car, you need an electronic insurance confirmation. So sort out your cover before your registration appointment, not afterwards.

If the new premium does not suit you

If the reclassification results in a significantly higher premium, it is worth comparing before you register the new car. The special right of cancellation under § 40 VVG does not apply here: it only covers premium increases the insurer makes on the basis of an adjustment clause, not a higher premium that results from the new vehicle. Switching is also only worthwhile if the cover is equivalent. Compare the scope of comprehensive cover, the excess, any tie to approved garages and the rules on gross negligence before you look at the premium.

• Vehicle type class and regional class change
• No-claims discount moves with you, including to another insurer
• § 40 VVG only applies to increases based on an adjustment clause
• Get the new cover confirmed before registration

Selling the old car

If you sell your previous vehicle, the insurance contracts for it pass to the buyer (§§ 95 et seq. VVG). The buyer can cancel the third-party liability cover, for example if they register the car with their own insurer. Report the sale to your insurer promptly and keep the sales contract showing the date and time of handover.

The discount is worth more than the premium

Your no-claims discount is built up over years and quickly downgraded after a third-party liability or fully comprehensive claim. Partial cover (Teilkasko) claims do not lead to a downgrade. Before you report a minor fully comprehensive claim, check the downgrading table in your policy: the premium increase over the following years can exceed the amount reimbursed. You can work through how this offsets against an excess in the excess calculator – bearing in mind that the downgrading is not included there and has to be added separately.