How to Cancel Legal Insurance in Germany?

Key takeaways

• You can cancel the legal protection insurance within three months from the end of the contract year.
• You have a special right to contract termination in certain cases. For example, premium increases, insurer refuses to cover the legal costs, etc.
• The legal insurance provider can also cancel the contract under certain conditions.
  • Two filed two claims insured under the contract within twelve months.
  • You stopped paying the insurance contributions.
• Finding a new legal insurance is tough if your insurer cancels the contract.

This is how you do it

• You must submit a written cancellation request to your legal insurance provider. 
• Your legal insurer must get the cancellation request before the cancellation deadline.
• Find new legal insurance plan before cancelling the old one.
• Ensure there is no gap in coverage during the insurance change.
• If your insurer wants to cancel the contract, request a cancellation reversal. It means you’ll cancel the contract instead of your insurer.

Table of Contents

Can you cancel legal protection insurance in Germany?

Like any other contract in Germany, you can cancel legal protection insurance. The cancellation notice period depends on your contract.

The notice period usually varies between 1 and 3 months from the end of the contract year.

You take out a legal insurance policy for a certain period. It’s usually a one, three, or five-year contract. This means you cannot cancel the contract until the contract term ends, except in exceptional cases.

Example: You took out a three-year legal protection insurance contract on 1 Aug. 2024. In this case, a normal cancellation can only occur in 2027. 

Moreover, you must submit the legal insurance policy cancellation request by 31 April 2027 at the latest. Assuming a 3-month notice period.

An exception applies to five-year legal insurance contracts. These can be terminated at the end of the third insurance year. 

How do you cancel the legal insurance policy in Germany?

You must send a written contract cancellation request to your legal insurance provider. The request should be sent before the cancellation deadline.

The insurance policy will be renewed automatically if you miss the cancellation deadline.

Suppose you are canceling the legal insurance close to your deadline. We recommend sending the cancellation letter via fax or registered post with acknowledgment of receipt.

You must write the letter in German. To make things easier, we have written a legal insurance contract cancellation letter for you. You can use it for free to cancel the contract.

What should you consider before canceling legal insurance in Germany?

You should consider the following when canceling your legal insurance policy:

• Deadline for canceling the legal insurance contract.
• Have you found a new legal insurance provider?
• If you switch to a new insurer, ensure there is no gap between the services.
• Legal insurance usually has a waiting period. The insurer does not cover the legal disputes that arise during the waiting period. 
• However, many insurance companies eliminate or reduce the waiting period when you move to them from a previous legal insurance provider. However, there should be no gap between the cancellation of the old and the beginning of the new legal insurance policy.

In our comparison and test, we found that Arag*—Aktiv-Premium, WGV—Optimal PBV, and KS-Auxilia*—Jurprivat are the best legal insurance plans.

Unfortunately, no legal insurance provider in Germany offers services in English. Insurance agents like Feather* and Getsafe* offer basic English support. However, when you need legal advice, you must contact the insurance company, which only offers advice in German.

Feather and Getsafe sell Roland’s legal insurance plans. Roland is rated very good by DISQ (rating agency).

NOTE: Top rating agencies in Germany rated Arag—Aktiv-Premium, WGV—Optimal PBV, and KS / Auxilia—Jurprivat as the best legal insurance plans in Germany.

What is the special right of canceling a legal insurance contract in Germany?

In certain situations, the normal cancellation notice period doesn’t apply. Instead, you can cancel the legal insurance contract immediately. This is called the special right to cancel a contract.

Here are the scenarios when you can cancel the contract immediately.

The legal insurance company refuses to cover the legal costs

The legal insurance company refuses to cover the legal costs even though they should as per the contract. In this case, you can cancel the contract within one month.

You can also file a complaint with the insurance ombudsman and ask for their support. The ombudsman offers free support and can help you resolve conflicts with your insurance company.

The legal insurance premium is increased

You can cancel the legal insurance contract if the insurer increases the premium without offering extra services.

Moreover, you can cancel the contract within one month of receiving the premium increase notice. The policy cancellation takes effect from the time the premium increase applies.

The risk for which you took the legal insurance policy doesn’t exist anymore

In this case, you can terminate the legal insurance contract immediately. Moreover, the insurance company returns part of the premium paid.

For example, you bought a new house and no longer live in a rented property. Hence, you don’t need the tenant’s legal insurance. Similarly, you retired from the job. Thus, you no longer require employment legal insurance. 

The risk for which you took the legal insurance contract changed

Suppose after taking legal protection insurance, changes in your life lead to a change in the risk of legal disputes. The insurance company can adjust the insurance premium accordingly. 

But the insurer must adhere to a certain limit while adjusting the insurance contributions. If the insurer increases the premium by more than  10%, you have the special right to cancel the contract.

Moreover, you can cancel the legal insurance policy if the provider refuses to insure the increased risk.

When can the legal insurance company cancel your contract?

Like you, the legal insurance provider can also cancel the contract normally at the end of the insurance year or can use a special right of contract termination.

The insurance companies usually want to get rid of unprofitable insurance contracts. Hence, they use their special right of contract cancellation to do so.

In the following situations, the legal insurance provider can cancel the contract immediately.

• Suppose you claimed the insurance coverage at least twice within twelve months. In this case, you and the insurance company can terminate the contract within one month.
• You stopped paying the legal insurance contributions. In this case, the insurance provider will send you a written notice to pay the insurance premium. If you still don’t pay, the insurer can cancel the contract without notice. 

NOTE: When taking out legal protection insurance, ensure that legal advice on the phone shouldn’t be considered a claim. Read our guide on legal insurance in Germany to learn more. 

The contract cancellation deadline is within one month of the coverage confirmation of the insured event. The cancellation letter also states that ongoing legal disputes will still be covered.

Things to consider when a legal insurance provider cancels the contract

The termination of the legal insurance contract by the insurer is disadvantageous for you. It’s because finding a new legal insurance gets tough. Moreover, the new insurers may demand a higher premium.

When you are looking for a new legal insurance plan, many insurers ask about your previous insurance company. You even have to answer who canceled the legal insurance policy – you or your insurer. 

If you check that the insurer canceled your policy, the new insurer usually rejects your application.

What can you do to avoid a legal insurance policy rejection?

• Cancellation reversal: Contact your legal protection insurance company to request a cancellation reversal. In this case, the insurer withdraws its cancellation, and you can terminate the contract yourself.
• Contract restructuring: You can ask for a contract restructuring. It means modifying your existing legal insurance contract so the insurance company continues to insure you. It includes increasing premiums, removing certain areas of legal protection, etc. You must consider whether the insurance policy after the restructuring is worth it.

NOTE: Never lie on the insurance application form. If the insurer finds out you lied on the application, you may lose the insurance coverage.

References

• https://www.finanztip.de/rechtsschutzversicherung/rechtsschutzversicherung-kuendigung/
• https://www.allianz.de/recht-und-eigentum/rechtsschutzversicherung/kuendigen/
• https://rightmart.de/ratgeber/rechtsschutzversicherung-kuendigen
• https://www.transparent-beraten.de/rechtsschutzversicherung/kuendigen/