After deregistration: what happens to insurance and vehicle tax?

Automatic notification to insurer and customs

With the official notice of deregistration, the paperwork is generally done. The registration authority or the vehicle register informs both your motor insurer and the German customs administration, which is responsible for vehicle tax, electronically. A separate cancellation or a letter to the main customs office (Hauptzollamt) is not necessary.

It is still worth taking a quick look a few weeks later: if a tax assessment and a statement from the insurer arrive, everything has been received correctly. If neither arrives, it is worth following up, using the deregistration notice as proof.

Vehicle tax: ends to the exact day, with a refund

The tax liability ends on the day of deregistration. Since vehicle tax is usually collected for a whole year in advance, deregistering during the year almost always results in a credit. The responsible main customs office recalculates the tax and refunds the amount overpaid.

The refund is usually paid automatically into the account from which the tax was collected by direct debit. If you have changed banks in the meantime, inform customs of your new bank details. Experience shows that it takes a few weeks for the money to arrive.

• Example: annual tax of €240, paid in advance until the end of December.
• Deregistration on 30 September: around 92 unused days remain.
• Refund: roughly €240 divided by 365, multiplied by 92, so just over €60.

Motor insurance: the contract ends or becomes dormant

What happens to the insurance contract depends on the reason for the deregistration. If the car is scrapped or permanently handed over, the contract ends. Any unused premium is offset or refunded pro rata.

In the case of a temporary lay-up, the standard German motor insurance conditions (AKB) often provide for premium-free dormant cover, frequently for up to 18 months. It protects the parked vehicle against certain risks such as fire or theft, provided it is kept on private property or in a garage. The exact conditions are set out in your contract.

No-claims discount: what happens to your no-claims class

The no-claims class (SF-Klasse) you have built up over the years is not lost when you deregister. Insurers store the discount for a certain period and transfer it to a subsequent vehicle. How long the discount is retained differs between companies.

If you want to register a new car in the foreseeable future, ask your insurer specifically about a change of vehicle. This usually allows you to carry the discount over seamlessly. If required, you can register the new vehicle via Zulassung24.

Checklist for the weeks after deregistration

A few things are still up to you after the deregistration. This short list helps you keep track:

• File the deregistration notice digitally and as a printout.
• Check your bank statements for the tax refund from the main customs office.
• Wait for and check the insurer's statement or confirmation.
• Separately cancel standing orders or direct debits for parking, fuel cards or leasing.
• Only keep the vehicle on private land from now on.

Special cases: seasonal plates, leasing and financing

With a seasonal licence plate, tax and insurance are suspended outside the registered period anyway. Here, deregistration is mainly advantageous if the vehicle will no longer be used permanently or for several seasons.

For leased or financed vehicles, the vehicle title is usually held by the lessor or the bank. The contract often stipulates whether and when you may deregister the vehicle. Clarify this beforehand so that the deregistration does not lead to trouble with your contractual partner, even though it would be technically straightforward.