Switching Car Insurance and Optimizing Premiums in Switzerland

Adjusting a policy, changing vehicles, or simply taking advantage of potential savings: there are many reasons to review your car insurance. In Switzerland, however, contracts often persist due to automatic renewal clauses and strict cancellation deadlines.

In this guide, you will learn everything you need to know about switching car insurance in Switzerland – from the legal grounds for cancellation to the deadlines you must observe and how to ensure a seamless transition.

When can you switch car insurance in Switzerland?

Switching car insurance is not possible at just any time. The Swiss Insurance Contract Act (VVG/LCA) as well as the individual General Terms and Conditions of Insurance (AVB/CGA) determine the points in time at which a cancellation becomes legally effective.

1. Ordinary cancellation at the end of the contract term

Every insurance contract is concluded for a specific term (often 1 year or multi-year contracts with an annual right of cancellation).

• The rule: You can properly cancel the contract at the end of the insurance year, provided you observe the notice period.

• The deadline: As a rule, the notice period is 2 to 3 months before the end of the insurance period.

• Important: The cancellation letter must have arrived at the insurance company on the last day of the notice period (the postmark date is not sufficient for many providers).

2. Extraordinary cancellation in the event of a premium increase

If your insurance company increases the premium or changes the contract conditions for the upcoming year, you have an extraordinary right of cancellation.

• The rule: The company must inform you of the premium adjustment in good time (usually at least 25 to 30 days before the end of the insurance year).

• The deadline: You have time from receipt of the notification until at most the last day of the current insurance year to cancel.

3. Change in the event of a vehicle change or change of holder

If you buy a new car or change the registered keeper of the vehicle, the previous motor vehicle liability insurance ends automatically upon registration of the new vehicle at the Road Traffic Office.

• The rule: For hull insurance (partial casco / full casco), there is a direct special right of cancellation in the event of a vehicle change. You can choose a new insurance policy for the new vehicle without any problems.

4. Cancellation in the event of a claim

If an insured loss occurs and the company pays out a benefit, both parties have the right to terminate the contract.

• The deadline: After payment of the compensation by the insurer, you usually have a period of 14 days to terminate the contract with immediate effect or at the end of the current indemnity period.

Step-by-step guide: How to successfully switch car insurance

To ensure there is no gap in coverage during the switch and that you remain seamlessly protected, the following procedure is recommended:

1. Check notice period

​2. Compare new offers

3. Cancel old contract within the deadline
4. Submit new proof to the Road Traffic Office

Step 1: Determine the key date and notice period

Check your current policy for the expiry date of the insurance period as well as the agreed notice period (e.g. 3 months as of December 31).

Step 2: New coverage and comparison

Obtain quotes for the new vehicle or the existing policy. Pay attention not only to the price, but also to coverage modules such as:

• Protection against gross negligence
• Bonus protection
• Parking damage coverage
• Free choice of garage

Step 3: Submit a legally secure cancellation

Send the cancellation letter in good time. Use, for example, the digital cancellation tool from Kündigen24 for a legally sound procedure without formal errors to secure proof of meeting the deadline.

Step 4: Submit proof of insurance

In the event of a vehicle change, the new insurance company transmits the electronic proof of insurance (eVN) directly to the responsible Road Traffic Office. Only after this will the vehicle registration document be issued or updated.

Frequent mistakes when switching car insurance

• Confusing postmark with receipt: The cancellation is only considered delivered once it has been received by the insurance company.
• Unclear contract duration: Even with multi-year contracts, under current Swiss VVG law there is often an annual right of cancellation after the third year – check the clauses carefully.
• Coverage gaps in casco: Liability insurance is required by law, but make sure that casco protection starts seamlessly on the very day the old contract ends.

Cancel car insurance simply and with legal certainty using Kündigen24

Monitoring deadlines and creating legally sound cancellation letters can be time-consuming. With Kündigen24, you manage your insurance contracts centrally in one place. Create cancellation letters in under two minutes and ensure your contracts are terminated within the deadline and provably.