Customers Are Free To Draft Contracts

2023 Author: Eric Donovan | [email protected]. Last modified: 2023-08-25 09:36

The main maturity during the year for motor insurance is a rare practice. "But since there are no statutory deadlines, customers and their providers are basically free to design their contracts," said Christian Lübke from the general association of insurers in the Autogazette.

The majority of those willing to change a car insurance change at the end of the year. "The date has grown historically and is due to the fact that it used to be quite simply and simply much easier and was to make all vehicle-related changes on a fixed date," says Christian Lübke from the Association of Insurers (GDV) of the Autogazette.

Customer decides

But the established practice is now in question. “We are currently observing an intensified discussion of the topic. In the end, the customer will decide when he would like his main due date,”Lübke continues.

According to Lübke, nothing will change in terms of the notice periods. «You can also cancel your contract one month before the main due date - regardless of whether the annual fee has to be paid on January 1st or April 1st. Only the termination date is then different."

Rare main maturity during the year

Autogazette: Those who take out a motor vehicle policy are usually bound from January to December and beyond without notice. Now the industry is discussing the “nice term” of the main maturity during the year. What's this?

Christian Lübke: One speaks of a main maturity during the year if the contract does not start on January 1st, but on any other date - for example April 1st. The annual fee is then due on this day. Unless otherwise agreed, the vehicle contracts concluded during the year usually also end at the end of the year. In practice, the main maturity during the year is less common, but for a long time, that's nothing new.

Autogazette: The majority of those willing to change quit at the end of the year. How so?

Lübcke: The date has grown over time and is due to the fact that it used to be quite simply and simply much easier and was to make all vehicle-relevant changes on a fixed date. However, since there are no statutory deadlines, customers and their providers are fundamentally free to design their contracts.

«One step further next year»

Autogazette: Now the fixed rhythm is in question, right?

Lübcke: We are currently observing an intensified discussion of the topic. As an association, however, we lack the relevant figures for a concrete forecast. We will certainly be one step further in this regard next year. In the end, the customer will decide when he would like his main due date.

Autogazette: Does that have to do with the scrapping premium?

Lübcke: No, rather with some companies considering offering this flexible main maturity more strongly. Because of this, we receive more inquiries.

Autogazette: Do claims such as the transfer of the no-claims classes change when you switch to a contract of less than one year?

Luebcke:Nothing will change in the usual practice at the moment. In fact, the no-claims discount is not "taken away" even today. Rather, the old insurer informs the new one of the customer's previous no-claims class. In addition, it provides information about the damage and interruptions not yet included in the no-claims class at this point in time. The new insurer then classifies the contract of his new customer in the no-claims system he uses.

Autogazette: do the notice periods remain?

Luebcke:Nothing will currently change in terms of the notice periods. You can also cancel your contract one month before the main due date - regardless of whether the annual fee has to be paid on January 1st or April 1st. Only the termination date is then different.

Martin Woldt conducted the interview with Christian Lübke