What does car insurance exclude?

This is important, for example, if your abandoned car is stolen or caused damage. Here you can find out exactly what retirement insurance is, what costs you will have to pay, when and for how long it is valid.

If you want to use a retirement insurance for your car, you should consider a few points. Here we explain everything you need to know if you want to put your car insurance on hold:

  • What is retirement insurance for motor vehicles?
  • What are my duties?
  • What are the costs?
  • What applies to season drivers?
  • What will happen to the SF class?

What is retirement insurance for motor vehicles?

So that your car remains insured after de-registration (decommissioning), there is a retirement insurance. It ensures that your decommissioned vehicle is still covered by insurance.

The retirement insurance for your vehicle comes into effect automatically when your insurance company learns of the decommissioning. The registration authority will tell her when you deregister your car. So you don't have to cancel your insurance to put your car insurance on hold. The retirement insurance usually starts automatically after the shutdown.

De-registering with the vehicle registration authority always makes sense if you no longer want to drive your vehicle. This can be the case, for example, if you want to sell your car, but also if it is no longer roadworthy due to age or after a total write-off. Even if you only want to use your vehicle seasonally, you can take advantage of the retirement insurance for the period in which you are not driving the vehicle.

When deregistering, the license plates are removed and the license plate is canceled. Your car is then considered to be shut down. It is then no longer allowed to drive on public roads.

The exceptions: The retirement insurance does not come into effect if there are less than two weeks between the de-registration and the (re) registration of your vehicle. Even if you expressly wish during the decommissioning that your previous paid insurance cover continues, no retirement insurance will apply. You have to inform your insurance company of this before decommissioning. Then your previous insurance cover will remain in place even after you deregister.

The rest insurance also does not apply to vehicles such as mopeds or caravan trailers.

You should know that: A retirement insurance can only be granted if your contract with the motor insurance company had been in place for at least one year at the time of the shutdown. In the case of shorter contracts (less than one year), it is not possible to take out a subsequent non-contributory pension insurance. In addition, the cost of deregistering the car varies depending on the registration district.

What protection applies to retirement insurance?

The rest insurance applies to vehicles in the motor vehicle liability insurance, as well as to those in the partially comprehensive insurance and the fully comprehensive insurance. Which insurance coverage you have in the retirement insurance depends on the insurance you took out beforehand.

The retirement insurance usually includes the protection of the liability insurance. If you had comprehensive insurance (fully or partially comprehensive) for your car at the time of decommissioning, there is also partial comprehensive insurance coverage in the retirement insurance. Then the insurance also covers damage caused by storm, hail or lightning, for example.

Good to know: With a previously existing fully comprehensive insurance, some insurers also grant protection in the retirement insurance that goes beyond the partial comprehensive insurance. It is best to find out more about this directly from your insurer.

Important: If your car is not registered, you are not allowed to use your vehicle on public roads. Because the registration is mandatory in order to be allowed to drive on German roads. If you drive without registration, the insurance company can also refuse its benefits.

But there are a few Exceptions: The insurance coverage of the motor vehicle liability insurance also applies to journeys with unstamped license plates that the registration authority has allowed you as part of the registration process. This includes, for example, the trips

  • to Registration and deregistration at the vehicle registration authority and
  • to carry out the general inspection (HU),
  • the Emissions test (AU) or
  • the safety test.

Exactly which journeys are permitted in this context is specified in the insurance conditions of your vehicle insurance.

It is important for all separate journeys that you only drive a direct and as short a distance as possible to the respective location. All other journeys are prohibited in Germany when driving without a license, i.e. with an unstamped license plate.

The condition: Before you can start driving without registration, you must check with your insurance company whether your car is insured for driving with an unstamped license plate. In case of doubt, a look at the approval regulation will also help.

Such a confirmation is only necessary for the return journey after decommissioning. After deregistering at the vehicle registration office, the car is still insured for the same day, as long as the license plate has not yet been assigned to another vehicle.

How long is the retirement insurance valid?

The retirement insurance is usually valid for a period of 18 months. Then it ends automatically without you having to submit a cancellation.

Please note: With some insurances, the protection of the retirement insurance is only valid for 12 months. Therefore, always find out the exact duration directly from your insurance provider. The duration of the retirement insurance is specified in your insurance contract.

The retirement insurance can also automatically be shorter if you register your car with the vehicle registration authority again within the period of 18 months (or 12 months). You have to inform your insurance company immediately. Then the previous insurance cover comes into force again.

Good to know: If you only want to temporarily shut down your vehicle and register it again within the deadline, you cannot change insurance provider. The protection only ends after the 18 months. After that, you can change your car insurance.

Even if you have your car scrapped, you have to deregister the car. Often times, the waste disposal company will also take care of the de-registration for you. But check in advance whether you will incur additional costs. If you make use of the service, you should still get a copy of the certificate of destruction. When your car is scrapped, your insurance cover ends.

With individual insurance providers, you can also extend the protection of the retirement insurance. You should clarify directly with your insurance company whether this is possible with your insurance company and which conditions then apply.

What are my duties?

With a few exceptions (direct drive to the registration office), you are not allowed to take part in road traffic during the period of the retirement insurance. You are obliged to park your vehicle permanently in a parking space (for example a single or collective garage) or in an enclosed parking space (for example enclosed by a fence, hedge or wall). You are not allowed to move the vehicle outside of the premises.

The insurance company speaks of obligations. If you violate this, for example by driving your car on the street, the insurance cover of the retirement insurance does not apply.

What are the costs?

The retirement insurance is usually included in the insurance free of charge. This means that you will not incur any insurance fees during the rest phase. This always applies if the retirement insurance comes into effect automatically after you deregister your vehicle.

With some car insurance companies, however, there is also the option of taking out pension insurance for a fee. This can be useful, for example, if you buy a car without registration that you don't want to drive right away. In that case, you have to apply for insurance cover.

The normal retirement insurance is also only valid for a certain period of time (usually 18 months). Then the protection ends automatically. If you want to extend the policy beyond that, you can continue the insurance with some providers for a fee. The conditions and costs always depend on your insurance company. The same applies to the extension of the retirement insurance. It is best to find out more directly from your insurance provider.

What applies to season drivers?

The rest insurance is especially worthwhile for seasonal drivers. This applies, for example, to drivers of convertibles, motorcycles, caravans or vintage cars. Because with seasonal license plates, the retirement insurance automatically covers the period outside of the season. You don't have to deregister the car for this.

A seasonal license plate is only valid for the period in which you drive your car. It is then always approved for a fixed period of at least two months and a maximum of 11 months. You can only drive it during the season, the rest of the time it has to be quiet.

Good to know: The signs can stay on the car even during the rest period. Because with the retirement insurance, there is no need to register and de-register the vehicle at the start or end of the season. The car remains registered the entire time.

The advantage in retirement insurance: You do not pay any insurance fees for the car that you only drive seasonally during the rest period. The full insurance cover only comes into effect for the period in which the official license plate is registered (season). During the season you have to pay the full cost of the insurance. Outside the season, the retirement insurance applies. There are no costs for this.

The following also applies to seasonal vehicles: You are not allowed to drive the vehicle on a public road or park in a public parking lot during the rest period. You will need to park it in a private parking space, such as a garage or enclosed private property.

What will happen to the SF class?

The no-claims class and the respective no-claims discount determine how high the insurance premium you have to pay. The no-claims class (SF class) denotes the classification in motor vehicle insurance.

Each insurance also assigns a no-claims bonus (SFR) to the various no-claims classes. For every accident-free year, your no-claims class and your no-claims discount increases. The result: you have to pay less for your car insurance.

Important: You will only receive a no-claims discount if the vehicle is registered for six months or more a year. If you only register your seasonal vehicle for two or three months, your no-claims class cannot improve.

Also note: Some insurers also downgrade your SF class if you leave your insurance on hold for more than a year. You should always read your insurance documents beforehand to find out what is the case with your car insurance.

Tip: Check how you can save more: with a better no-claims class or a lower vehicle tax for seasonal license plates.

Protected, even when your car is idle

Now you know what applies if you want to let your car rest: The retirement insurance for your vehicle usually follows directly after the active insurance period (until you cancel). It comes into effect when you have shut down the car. It is usually free and is valid for up to 18 months. This means that your vehicle remains protected even after it has been taken out of service.

The good: Insurance coverage begins automatically as soon as your insurance company finds out about the shutdown. At the end of the specified term, which is usually 18 months, the retirement insurance ends automatically without you having to cancel it.

We wish you a good trip all the time! Your Allianz Direct

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