Two money deadlines fall on Monday, November 30, 2026. It is the last day to cancel most car insurance contracts for a switch on January 1, 2027. It is also the last day to apply for a tax-free allowance on your 2026 salary.
One common mix-up: November 30, 2026 is not the deadline for your 2027 allowance. You can apply for the 2027 allowance until November 30, 2027, but applying by January 31, 2027 gets you the benefit from your first payslip of the year.
- Car insurance: your cancellation must reach your insurer by November 30, 2026 if your insurance year ends on December 31
- Tax-free allowance for 2026: apply by November 30, 2026 (it only affects your December salary)
- Tax-free allowance for 2027: open since November 1, 2026; apply by January 31, 2027 to benefit from January
Deadline 1: Switch Your Car Insurance by November 30
Most car insurance contracts (Kfz-Versicherung) run for a calendar year and have a one-month notice period. To switch insurers on January 1, 2027, your cancellation has to arrive at your insurer by November 30, 2026. The date it arrives counts, not the date you send it.
Check your insurance policy (Versicherungsschein) first. Some insurers start the insurance year on the day you registered your car. If your insurance year started on October 1, for example, you can only cancel for September 30.
WARNING: Take out the new policy first and cancel the old one only after the new insurer has accepted you. Your car must never be without liability insurance (Haftpflichtversicherung).
Why Is Now a Good Time to Compare Car Insurance?
The German Insurance Association (GDV) has published new type classes (Typklassen) for car models. In liability insurance, about 7.4 million drivers move into a higher class and about 5.1 million into a lower class. For around 71% of drivers, nothing changes.
A higher type class does not automatically mean a higher premium. Insurers set their own prices, and the region, your annual mileage and your no-claims class also count. But repairs have become much more expensive, and insurers pass these costs on to customers.
You can compare car insurance on the comparison portals Check24* and Verivox*. Our guide to saving on car insurance costs in Germany has more tips.
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Tarifcheck – Compare car insurance plans
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Verivox – Compare car insurance plans
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Missed the Deadline? You May Still Be Able to Switch
If your insurer raises your premium, you have a special termination right (Sonderkündigungsrecht). You can cancel within one month of receiving the notice, even after November 30. Many insurers only send the 2027 premium bill shortly before the end of the year, so read it carefully.
NOTE: Your no-claims discount (Schadenfreiheitsklasse) moves with you to the new insurer. But if you caused an accident and had discount protection (Rabattschutz) with your old insurer, the new insurer usually downgrades you. This can cancel out the savings.
Not sure which cover you need? Read our guide to the best car insurance in Germany and our comparison of partial vs. fully comprehensive car insurance.
Deadline 2: Apply for a Tax-Free Allowance (Lohnsteuer-Freibetrag)
If your work-related or private costs are high, you don’t have to wait for your tax return to get money back. With a tax-free allowance (Lohnsteuer-Freibetrag), your employer withholds less income tax every month.
You apply with the “Antrag auf Lohnsteuer-Ermäßigung” at your tax office (Finanzamt), online via ELSTER or on paper. Costs that can count include commuting costs, work equipment, training, childcare costs, donations, high medical costs and maintenance payments.
| Allowance for | You can apply | Takes effect |
|---|---|---|
| 2026 | Until November 30, 2026 | Only on your December 2026 salary |
| 2027 | November 1, 2026 to November 30, 2027 | From January 1, 2027 if you apply by January 31, 2027; otherwise from the month after you apply |
You can apply for an allowance for up to two calendar years at once, for example for 2027 and 2028. Your costs have to exceed €600 in total, counting work-related expenses only above the employee lump sum (Arbeitnehmer-Pauschbetrag).
NOTE: A tax-free allowance can make filing a tax return mandatory for you. Your refund will also be smaller, because you already got part of the money during the year.
Want to change your tax class too? You can do that with the same form. See our guides to tax classes in Germany and how to change your tax class. Our guide on how to increase your monthly net income lists more ways to keep more of your salary.
Get a Free Quote From a Tax Advisor
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File Income Tax with WISO Steuer (German)
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File Income Tax with Wundertax
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File Income Tax with SteuerGo
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- The tool is also available in English.
- Get tax-saving tips to maximize your tax return in the current and the following years.
You can read the detailed comparison of best tax software in Germany here.
What Should You Do Before November 30?
- Find your car insurance policy and check when your insurance year ends.
- Compare offers with the same mileage, drivers, parking spot and deductible, and take out the new policy before you cancel.
- Send your cancellation so you can prove it arrived by November 30, 2026.
- Decide whether a tax-free allowance for 2027 is worth it, and apply via ELSTER by January 31, 2027 to benefit from January.
- If your tax situation is complex, an English-speaking tax advisor can help.
See every change in Germany for 2027 ->
Sources
- Gesetze im Internet: § 39a EStG Freibetrag und Hinzurechnungsbetrag
- Finanzamt NRW: Lohnsteuer-Freibeträge für 2027
- Finanzamt Hessen: Lohnsteuer-Ermäßigungsverfahren
- Verbraucherzentrale: Kfz-Versicherung überprüfen und mehrere hundert Euro sparen
- Verbraucherzentrale Sachsen: Kfz-Versicherung – jetzt Tarife prüfen
- GDV: Neue Typklassen für über 12 Millionen Autofahrer
