Your rights as a policyholder
Withdrawal rights, premium increases, cancellation after a claim, the duty of disclosure – an overview of the concrete deadlines and entitlements the VVG grants you.
The Insurance Contract Act (VVG) governs four situations that genuinely come up in everyday life. Almost all of them turn on a one-month deadline – miss it and you lose the entitlement, even if you would otherwise be in the right.
Four situations, four sections
Your rights differ depending on what has happened: you have just signed up and changed your mind, the premium rises without more cover, a claim has been settled, or something on the application was answered incorrectly. Each situation has its own legal basis – and in three out of four cases, a one-month deadline.
- § 8 VVG: withdrawal within 14 days (life insurance 30 days, § 152 VVG)
- § 40 VVG: special cancellation after a premium increase based on an adjustment clause
- § 92 VVG (property insurance) and § 111 VVG (liability): cancellation after a claim
- § 19 VVG: consequences of incorrect information on the application
The right to cancel under § 92 VVG only applies to property insurance, such as household contents, buildings or comprehensive motor cover. In liability insurance, § 111 VVG applies. For legal expenses or accident insurance, only the policy terms determine whether a contract can be cancelled after a claim. Details are in the guide on cancellation after a claim.
Deadlines run from receipt
What usually counts is when the policyholder receives the notification, not the date on the letter. Keep the envelope or the email with its timestamp, and cancel in text form with proof of receipt. This overview is not a substitute for legal advice; for larger sums, it is worth going to a Verbraucherzentrale (consumer advice centre).
Frequently asked questions
Do I have to accept a premium increase?
Not necessarily. If the insurer raises the premium on the basis of an adjustment clause without a corresponding change in the scope of cover, you can cancel the contract under § 40 VVG within one month of receiving the notification. But check first whether you can get equivalent cover promptly.
What is the most common avoidable pitfall?
Incorrect or incomplete information on the application. If you breach the duty of disclosure, the insurer can, depending on the degree of fault, withdraw from the contract, cancel it or adjust it (§ 19(2) to (4) VVG). It only has these rights if it informed you of the consequences beforehand in a separate notice in text form (§ 19(5) VVG). Even after withdrawal, the insurer must still pay if the undisclosed circumstance did not cause the loss, unless there was fraudulent intent (§ 21(2) VVG). These rights generally expire five years after the contract was concluded, or ten years in cases of intent or fraudulent intent (§ 21(3) VVG). Even so, answer every question asked in text form fully and truthfully.
Selected sources
Note: This article is general information and not legal advice. It does not replace an assessment of your individual case by a lawyer or a consumer advice centre. No guarantee of accuracy; the law and case law may change.
Your next steps
Duty of disclosure
Answer questions on the application incorrectly and you put your cover at risk. What § 19 VVG requires, when the insurer may withdraw and what remains after that.
Read morePremium increase
If your premium rises without more cover, § 40 VVG applies: you can cancel within one month of receipt. Which deadlines apply and what to check first.
Read moreCancellation after a claim
After a claim, the insurer may also cancel. Which rules apply to property, liability and other insurance, and how to avoid a gap in cover.
Read moreWithdrawal
Under § 8 VVG, you can withdraw from an insurance contract within 14 days – in text form, without giving reasons. When the period starts and when it ends.
Read more