Car insurance contract: what you need to know

To take out car insurance, you first need to submit an application. Usually, insurance companies provide preprinted or electronic forms for this purpose. Depending on the company, different formalities apply.

Once you have filed your application, the insurance company has 14 days to decide on your admission. If you do not hear from them within this period, you are free of commitments and may withdraw your application.

Insurance applications: no cheating allowed

Answer all questions in the application form truthfully. There is what is known as a "duty of disclosure". In case of damage, the insurer may deny claims or reclaim benefits already paid if you make false statements or withhold information. Furthermore, the insurance company has the right to terminate the contract.

Small print in the GCI

The General Conditions of Insurance (GCI) are an integral part of your insurance contract. The provisions contained in the GCI and the policy together regulate the individual components of the contract.

Read the small print carefully before concluding the contract. Many insurance companies publish their GCI online.

If the insurance contract is unclear, ask

Ask your insurance provider to explain complicated and difficult-to-understand passages. By doing so, you avoid unpleasant surprises in the event of a claim.

Rights

• Right of withdrawal: you can withdraw from a contract you have already signed within 14 days – even by email.

• Right of cancellation: certain events give you the right to cancel the contract or change car insurance. These are

  1. Expiry of the contract period of your car insurance

  2. Insured damage event

  3. Change of vehicle or keeper

  4. Premium increase

• Tip: use the cancellation letter template from Comparis.

• Application: an application is a binding request for car insurance. You are bound by the application for 14 days. When the insurance company accepts the application, the contract enters into force.

Obligations

• Formalities: you no longer need to sign a car insurance contract for it to come into effect. You can simply communicate your acceptance electronically. However, if you wish to cancel your contract, you need to give written notice — by registered mail and within the specified notice period. Tip: why not sign up to receive a free cancellation reminder? Comparis will remind you of your cancellation deadline in good time.

• Duty of disclosure: before concluding a contract, you must inform the insurance provider of all relevant events that are important for risk assessment. These include previous damage, fines and past contract rejections. Usually, you provide this information in a questionnaire that forms part of the application form.

• Premiums: once the contract comes into effect, you are obliged to pay your insurance premiums regularly.

• Registering a vehicle: vehicle liability insurance is compulsory. You must take out this insurance when buying a car. The Road Traffic Office will request proof of this insurance. Read about more obligations when registering a car at Registering a vehicle.

No. You must inform your insurance company if you change your car. The insurance provider needs to know that you are no longer the keeper of the vehicle you had insured till now. The insurance policy is then cancelled and any premiums already paid will be refunded to you on a pro rata basis (by date).

You can then take out a new insurance policy with your insurance provider. Alternatively, you can look into other providers to find a better deal for your new car.

You can use your car insurance abroad in the following areas:

• Switzerland

• Principality of Liechtenstein

• European States listed on the International Motor Insurance Card (formerly Green Card)

• Countries bordering the Mediterranean, e.g. Tunisia or Morocco

• Mediterranean island states, e.g. Cyprus or Malta

Journeys by sea are covered by insurance as long as the departure point and destination are situated within these areas.