Car insurance
You can cancel your existing car insurance policy based on five reasons:
• Expiration of the policy
• Change of the vehicle
• Increase in insurance premium
• Change of car ownership
• In case of a claim
Expiration of the policy
The contract duration of every insurance policy is predefined and can be found in the policy document. Almost every insurance company, automatically extends the policy by one year if it is not cancelled within the notification period of three months before the expiration date. You can find the expiration terms of your policy within the general terms and conditions of your insurance company for the respective product.
Change of the vehicle
If you change your vehicle, you can cancel your existing car insurance policy. The annual insurance premium will be refunded pro-rata.
Increase in insurance premium
Your insurance company is obliged to inform you about an increase in the annual insurance premium. If you do not accept the price increase, the car insurance contract can be cancelled at the end of the policy period. The cancellation letter has to be received by the insurance company on the date of maturity.
Change of car ownership
The change of a car ownership has to be communicated to the road traffic licensing department. The rights and obligations of the liability cover of your car insurance are transferred to the new owner. The new owner can cancel the car insurance policy within 14 days after the change of ownership. The annual insurance premium will be refunded pro-rata.
In case of a claim
After each filed claim settled by the insurance company, the insurance policy can be cancelled within 14 days after the insurance company communicated the settlement of the claim. The annual insurance premium will be refunded pro-rata (except in the first year of insurance and in case of a total damage of the car). The car insurance cover is suspended upon receipt of the cancellation by the insurance company.
A no-claims bonus is standard for car insurance:
- If the insured person does not file a claim during the policy year, he/she receives a bonus from the insurance company and the premium rate will be reduced for the following year. The premium remains on the lower scale as long as the insured person does not file a claim.
- If an insured person files a claim, the insurance company will increase the premium rate for the following year.
Especially for Casco products, insurance companies offer bonus protection as an additional cover option which ensures that in case of a claim the premium rate does not increase in the following year.
The insurance policy usually covers all countries in Europe as well as certain Mediterranean countries outside Europe. Some countries are covered by a “green card agreement”.
Before you travel to those countries, a green-card has to be requested from your insurance company, which confirms the liability cover.
Additional information can be found on the homepage of the national insurance bureau www.nbi.ch.