Process of deregistration and cancelling insurance

3 posts in this topic

I am in the process of buying a new car and trading in my old one as part of the payment. I am unsure how the process for deregistering my old car and cancelling my insurance should work.


On the topic of deregistration, I asked the salesman at the car dealer that is selling me the car and he said he will take care of doing it all, but I need to give him my passport for 3 days in order to register the new car and deregister the old one. Is this normal that they need to take my passport to the registration office and not just a copy of it? Will I get some proof that they deregistered my car (like a confirmation letter from the registration authority, or my destroyed license plates)?


On the topic of the insurance, I called my current insurance to get a new policy for the new car and at the same time cancel my current insurance for the old car. Again, I am unsure how the process works because all I got as an answer by the insurance representative is that the vehicle registration authority will take care of cancelling my old insurance policy. This sounded strange to me (that a public entity would spend their resources on a private matter), so I just wanted to confirm from someone who has gone through this process before if this is really the case. Does the registration office also take care of notifying the insurance companies to cancel insurance policies once a car is deregistered?


Thank you to those of you who answer; I appreciate your help.


Share this post

Link to post
Share on other sites

Car dealers in Germany can not legally sell, or dispose of by trade, any used vehicle which is still registered to it's previous owner. In order to eliminate problems they generally put the onus on their sales staff to ensure that all formal obstacles are efficiently cleared. They generally do this by blocking commission payments until proof of deregistration and a lien free title document are in the transaction file.


The registration office will need both copies of the vehicle registration, the registered keeper's original proof of ID (for a German their Personalausweis, for non-Germans their Passport), their Meldebescheinigung (proof of address registration) and a limited purpose Vollmacht (Power of Attorney). Your salesperson will need to fill out such a Vollmacht and have you sign it too.


Vehicle registration offices do indeed automatically notify the insurer on file (AND the Finanzamt) that the car is deregistered as of the effective date. This arrangement has it's basis in the German laws regulating motor insurance, which include binding arrangements for mutual liability of notification and reporting, intended to eliminate the risk of uninsured vehicles remaining registered.


If you request it your salesperson, or the staff member who takes care of it, should be able to show you the deregistration stamp on your traded car's primary registration document when you are collecting your passport. Normally, unless a customer specially requests their return, dealers leave old plates at the new plate making firm or the registration office for recycling. Further proof of deregistration should appear, in the near future, on your bank balance by way of a partial refund from the Finanzamt of any unused portion of tax paid.




Share this post

Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now