How do I cancel my car insurance in Switzerland?
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The formalities for cancelling your car insurance in Switzerland are relatively straightforward. In this article, we take a look at the steps you need to take, to end your commitment to an insurer. New players in the insurance industry are showing innovation, by offering dematerialized termination methods. We also take stock of the events that may allow you to access your right of cancellation.
When to cancel car insurance in Switzerland?
Here are the various events that may allow you to request car insurance cancellation from your insurance company.
The end of the insurance year
The car insurance contract may provide for the possibility of cancelling the contracton each anniversary date of the contract. Others provide for the possibility of cancellation, at the end of a calendar year.
We advise you to consult your car insurance contract, to find out if you are entitled to this opportunity to cancel your contract. You should know that, in general, to avoid being committed to an insurer for several years, you have to pay an additional premium.
Cancellation on expiry
You can also choose to make your car insurance cancellation request on expiry of the contract. Whatever its duration, you will have the possibility of requesting an end to your commitment with an insurer, when the contract comes to an end.
Most contracts provide for a tacit renewal of commitments, in the absence of a cancellation request from the insurer or the insured. If you wish to terminate your policy on the expiry date, you must respect the deadlines. Otherwise, you run the risk of being contracted again for the same duration, as for the initial contract.
After 3 years
Regardless of the length of commitment stipulated by the contract, Swiss law provides for a right of cancellation after 3 years. This means that even if you are committed to your insurer for 5 years, you will have the option of requesting early termination.
The contract may provide for special conditions. In fact, taking out auto insurance with a long-term commitment allows you to take advantage of attractive rates. In the event of early termination, you risk having to pay penalties.
The amount of car insurance increases
It's possible that the amount of your premium increases during the course of the contract. When this happens, the insurer has a duty to inform you. You will then have the right to request cancellation of your car insurance, regardless of any commitment period provided for in the contract.
Don't hesitate to seize this type of opportunity, if your insurer indicates that it wants to increase your rate. You won't have to pay a penalty, as when you decide to cancel your contract on your own. Here too, the premium increase warning can be accompanied by a calendar, showing you the deadlines for requesting cancellation, following the rate change.
The vehicle is sold or no longer driven
An insured who gives up his vehicle or even changes car can perfectly cancel his car insurance. Here too, regardless of any commitment period, the contract is no longer valid if you are no longer in possession of the vehicle. You simply need to provide proof of the vehicle's session, to be able to interrupt the contract.
Furthermore, if the vehicle is no longer running, you can also request cancellation of the car insurance contract. You'll need to be able to prove that the vehicle has been ex-registered. A certificate from the competent authorities in your canton will suffice to justify the facts to your insurer.
The case of a claim
It is possible to cancel a car insurance policy following a claim. The insurer can also choose to stop insuring you, particularly if you areresponsible for the claim. It may in fact consider that the risk is increased, and that the proposed contract no longer corresponds to your situation.
The request for cancellation must be made within 14 days of the announcement of payment of compensation for the claim.
What steps should be taken to cancel a car insurance contract in Switzerland?
Here are the steps to follow, if you wish to cancel a car insurance contract in Switzerland.
Sending a cancellation letter
The basic procedure is to send a request to cancel the insurance contract by post, by registered mail with acknowledgement of receipt. To facilitate the insurer's search, it is advisable to include the contract number, as well as all the information concerning the insured.
You should also indicate the reason for cancellation, from among those previously mentioned. This will enable the insurer to assess whether or not you can request cancellation.
Cancelling car insurance online
Insurers with an online customer area now offeronline cancellation. You will be able to formulate a dematerialized request, which will potentially be processed more quickly by the insurance company. Before writing a letter, it may therefore be a good idea to find out whether your insurer will allow you to do this online.
Supporting documents for cancelling car insurance
Most of the time, a simple cancellation request letter is enough to cancel car insurance in Switzerland. However, the reason for cancellation may require certain documents to be enclosed. For example, in the event of a claim, don't hesitate to enclose supporting documents. In the event of a change of vehicle, or sale of the car, you may need to provide the certificate of sale.
Respect the notice period
Notice periods are generally indicated in your insurance contract. In most cases, it takes 3 months to cancel a car insurance policy. Some of the new car insurance players in Switzerland offer shortened periods with Smile, for example, it's possible to cancel in just one month.
Saving money with car insurance cancellation
Car insurance cancellation empowers Swiss policyholders, who can put insurance companies in competition over rates and quality of cover.
Comparing car insurance
To always benefit from the best rates or even the best options, it's advisable to regularly compare car insurance policies. Online comparators are very practical for this. All you need to do is enter a few details about the insured and the vehicle to be insured, to obtain rates from several dozen different companies.
Negotiating the contract
On the basis of this comparison, you can first try to negotiate your contractwith your insurer. In order to keep you, he may indeed make a gesture on the premium price or even offer you additional cover.
Changing insurance companies
You can also choose to change insurance companies. Most of the time, the new company will accompany you, to make it easier for you to cancel your policy with your previous insurer. The new company can also help you understand the cancellation procedures, as well as the deadlines mentioned in your contract.
For prestige vehicles, it's even possible to go through an insurance broker, who can help you find the best cover at the best price. They can also help you with the cancellation process.
Updated on: 30.01.2024Written by Antoine LégerHead of non-life insurance department at Comparea.To learn more about our team click here.