Car insurance premium increase
Car insurance is a must for operating a vehicle. Only with a car insurance the registration office allows the vehicle and it may be on the road. Before the registration office approves the vehicle for registration, a car insurance policy must be taken out. The car insurance companies offer different premium models and premium levels. The contribution levels usually remain in place for at least one year, but there are also exceptions. The following guide deals with the topic of increasing premiums for car insurance companies.
Why is the premium for car insurance increased??
There are different reasons why the premium of the car insurance is raised.
- Legislator increases tax levies
- A case of damage has occurred
- A new vehicle has been registered
The legislator has the right to increase the tax levies. Thus also the contribution for the Kfz insurance increases. The insurance company itself only passes on the amount and does not earn any additional money with it. In this case, even an extraordinary termination is not possible.
In the last year a damage was caused with the insured vehicle, which was settled by the insurance company. In the coming year, the car insurance will automatically be more expensive. In this case, too, extraordinary termination is only possible in special cases.
When a new vehicle is registered, the premium amount is adjusted to the new factors of the vehicle. Thus, the motor vehicle insurance may naturally be higher for a new registration than for the previous vehicle.
What to do in the event of a premium increase?
The premium increase is usually sent in writing. The increase usually takes place at the beginning of the new year. As soon as the letter about the premium increase has arrived, you should start thinking about how to proceed further. Today, there is a wide range of car insurance and with a car insurance comparison is the possibility to find the cheapest car insurance.
In the event of a premium increase, there is the possibility of termination. Within 30 days, the insured has the opportunity to oppose the premium increase. That means, it can be accomplished an objection or a notice is written. As a rule, notice of termination can only be given at the deadline of 30. November, but in some cases an extraordinary termination is also possible.
Special right of termination in the event of a premium increase
The special right of termination can come into play if there is a serious reason for termination. In this case, the increase in premiums of the car insurance. The special right of termination can only be exercised if the reason for termination is stated in the termination letter.
A reason for the special right of termination exists if the insurance company raises the premium without extending the scope of benefits of the car insurance policy. This possibility exists also if the increase arises due to a worse classification with the type and regional class. However, if the insured changes the regional class due to a move, then there is no special right of termination.
Another reason for a special termination right is when the insurance coverage is reduced, but the premium remains or is even increased.
premium increase due to hidden increases
- The subject of hidden premium increase is not so simple.
- One speaks of a concealed increase, if the premiums of the Kfz insurance are increased in detail, but the annual premium does not rise at the end in the height.
- The increase is compensated by the improvement of the no-claims bonus, thus the annual premium remains the same.
- Also here an extraordinary right of cancellation can be used.
Damage case can provide for premium increase
Some insurance companies raise premiums after a claim, then an extraordinary termination can be perceived. This applies if the insurance company does not want to pay the damage or subsequently the premiums rise upwards.
Basically there is a car insurance cancellation period of 30 working days. The cancellation should always be in writing. Registered mail or fax are legally valid if the date and a signature of the insured are clearly visible.