Insurance: you can now cancel just after taking out a contract

1. No more long-term contract commitments

Before: In the insurance industry, contracts with a duration of up to five years were common practice.

Now: Multi-year insurance contracts can be ended by both parties after a 3-year period (ordinary termination).

Tip: Always insist on the option to cancel after one year when taking out an insurance contract.

2. Right of withdrawal for newly signed contracts

Before: A signed insurance contract could be terminated no earlier than at the end of the contract, provided the notice period was observed.

Now: Those who take out an insurance contract may cancel it within 14 days with no obligation.

Tip: Regularly set aside some time to analyze your insurance portfolio and adjust your insurance cover if necessary.

3. Extended limitation period

Before: Any damage claims had to be reported to the insurer within two years of the damage event.

Now: The period for reporting claims is now five years.

Tip: Always report damage to your insurer immediately. This way you’ll get your money faster. And you avoid the hassle of having to find the relevant documents years later.

4. Ban on termination for health insurers

Before: Both parties were able to terminate supplemental insurance policies for social health insurance while observing the ordinary notice period or after a claim was made.

Now: The ordinary right to cancel as well as the right to cancel after a claim are only available to policyholders.

Tip: Check regularly whether switching to a new provider makes financial sense and is worthwhile in terms of the insurance cover offered. Don’t cancel with the old provider until the new provider has confirmed your policy.