Special cancellation right (Sonderkündigungsrecht) in German car insurance

German car insurance can normally only be cancelled at the end of the insurance year – for most policies, notice must arrive by 30 November. Certain events, however, let you leave the contract outside that deadline. This is the Sonderkündigungsrecht, or special cancellation right. The main triggers are a premium increase, a claim and the sale of the car, each with its own time limit.

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Overview

Trigger	Time limit	Takes effect
Premium increase without better cover	1 month after receiving the notice	at the earliest when the increase applies
Claim	1 month after settlement, or after liability was accepted or rejected	immediately or later, at the latest at the end of the insurance year
Sale of the car (buyer)	1 month after purchase or after learning of the policy	immediately or at the end of the insurance year
Insurer changes the policy terms	as stated in the notice, usually 1 month	as stated in the terms

1. Premium increase

If the insurer raises the premium without extending your cover, Section 40 of the Insurance Contract Act (VVG) and the model conditions (AKB) let you cancel within one month of receiving the notice. Cancellation takes effect at the earliest when the increase would apply. The insurer must tell you about this right, and the notice must normally reach you at least one month before the increase applies.

Typical causes are a general tariff adjustment or a new type class or regional class for your car. Background: type class and regional class.

Example: The premium notice with an increase from 1 January only arrives in early December. The 30 November deadline has passed, but you can usually still cancel within one month of receiving the notice.

When there is no special cancellation right

Downgrade after your own claim: If your premium rises because your SF class drops after an accident, this does not count as a premium increase for this purpose.
Changes you make: Higher annual mileage, extra drivers or moving house usually do not create a special cancellation right. Your terms may provide exceptions.
Better cover: If the insurer also extends your cover, the situation may differ. Read the notice carefully.

2. Cancellation after a claim

After a claim, both you and the insurer may cancel. The time limit is one month. It usually starts when the settlement negotiations have ended or, in third-party liability, when the insurer has accepted or wrongly rejected liability. You can choose whether cancellation takes effect immediately or later, at the latest at the end of the insurance year.

Bear in mind that your SF class downgrade follows you to the new insurer, so switching after a claim is not automatically cheaper. More on classes: SF class and no-claims discount.

3. Selling the car

When a car is sold, the policy initially passes to the buyer (Section 95 VVG). The buyer can cancel it within one month of the purchase, or within one month of learning about the policy. As the seller, report the sale to your insurer promptly. Your SF class stays with you and can be used for your next car.

If the car is only temporarily deregistered, the policy usually continues as premium-free dormant cover (Ruheversicherung). If it is permanently taken off the road, for example scrapped, the contract ends and overpaid premium is refunded pro rata. Your terms set out the details.

4. Changes to the policy terms

If the insurer changes the terms under an adjustment clause, the AKB often grant a cancellation right as well. The time limit is stated in the insurer's notice.

How to use the special cancellation right

Note the date you received the notice (letter or customer portal).
Compare new quotes and take out the new policy – cancel only once it has been accepted.
Send the cancellation stating the reason. Wording in German: cancellation letter template.
Keep proof of delivery and wait for confirmation.

Frequently asked questions about the special cancellation right

How long do I have after a premium increase?

Usually one month from receiving the notice of the increase. The date you received the letter is what counts.

Does the special cancellation right apply after 30 November?

Yes, if there is a trigger such as a premium increase. The one-month window runs independently of 30 November.

Can I cancel because my SF class was downgraded after an accident?

Not because of the downgrade itself. The claim does, however, give you a separate right to cancel within one month of the settlement.

Can the insurer cancel after a claim?

Yes. The insurer may also cancel after a claim. Its cancellation normally takes effect one month after you receive it.

Do I need to give a reason?

State the trigger in your letter, such as the premium increase with the date of the notice, or the claim with its claim number.

Next step

If your premium goes up, compare quotes within the one-month window. Compare car insurance quotes by PLZ

More on regular switching: switch car insurance by 30 November and switch car insurance in Germany.

Note: General information without guarantee; not legal or insurance advice. Your policy schedule and your insurer's terms (AKB) always take precedence. Last updated: October 2026.