Insurance customers must answer various questions when applying. Insurance providers use this information to calculate risks. You will be required to indicate, for example, how many kilometres you drive per year, what you use the vehicle for, etc.
If the answers to these questions change any time after the conclusion of the contract, this represents a change in the level of risks.
Policyholders are obliged to immediately notify their insurers of such changes in writing.
Increase in risk:
If the risk is higher than before, insurance companies call this an increase in risk.
If your insurance provider does not contact you following your written notification, the increased risk will be covered by your current insurance. Should your insurer have any objections, he must terminate your contract within 14 days.
Decrease in risk:
If your risk is lower than before, this is called a decrease in risk and your insurance provider will reduce your premium.
Some insurance companies do this for the following year of insurance, others lower premiums as soon as they receive notice.
Contact your insurer right away if you have, for example, installed an alarm system or additional airbags in your car or if it is no longer parked outside, but in a garage.
Your insurer may be able to reduce your premium depending on how they evaluate your risks.