How do you cancel your car insurance, known as compulsory motor third-party liability insurance (povinné ručení)? In which cases can you do it? In the Czech Republic, every car on the road must have compulsory motor third-party liability insurance. If you decide to switch to another insurer, for example, we will explain how to do it and what you will need. As a bonus, we will also tell you what to consider when you take out new compulsory motor third-party liability insurance. The cheapest option is not always the best.
What is compulsory motor third-party liability insurance?
What is the exact definition of compulsory motor third-party liability insurance? Liability insurance for the operation of a vehicle on roads (pojištění odpovědnosti z provozu vozidla po pozemních komunikacích) is insurance that every vehicle owner must have by law. It mainly protects vehicle owners, because if a road accident happens, this insurance covers everything. However, it only covers the car of the owner who suffered damage. There is also comprehensive insurance (havarijní pojištění), which covers repairs to your own vehicle if you cause an accident.
When can I cancel compulsory motor third-party liability insurance?
As we have already said, every car owner must have this insurance. So in which cases can you cancel it?
- you sell the car
- the vehicle is removed from the vehicle register
- you do not agree with an increase in the premium
- your contract has expired (usually after 1 year)
What other documents do you need to cancel it?
It depends on why you are giving notice. First of all, you always need a written notice in free form that includes all the important details:
- your first name, surname and address
- Policy number
- reason for cancellation
- date and signature
You then also need to attach the following documents, depending on why you want to end the contract:
- purchase contract
- the large vehicle registration certificate (velký technický průkaz), showing that the vehicle has been taken out of service
How do you deliver the notice?
If you have a data box (datová schránka), this is by far the easiest way to send notice cancelling your compulsory motor third-party liability insurance, because you do not have to sign or print anything. Another way is to send a scanned notice to your insurer by email. In this case, you need to print the document and sign it, then scan it again and send it. You can also send it by email with a verified electronic signature. The last two options are to send it by post or to visit the insurer in person.
Whichever method you choose, you need to allow time for your insurer to process your request. This period varies depending on why the insurance is ending. If you cancel compulsory motor third-party liability insurance because you have sold the car, for example, the insurance ends on the date the car was sold. The same applies if the vehicle is scrapped.
What else is important?
It is worth mentioning that if you are cancelling insurance because the contract is ending, you must do so 6 weeks before it expires. So if you know your compulsory motor third-party liability insurance is paid until 30 April 2024, it is better to send your notice in the first half of March.
Another point: if you want to switch to another insurer because you do not agree with an increase in your premium, you have 1 month to do so. This period starts when your insurer delivers the new payment notice to you.
Template notice for cancelling compulsory motor third-party liability insurance
What to consider when choosing a new policy (insurer)?
Whether you are buying a new car or just switching to another insurer, you will need to decide which policy to choose. The main things to compare should be the price, but also the assistance services provided. The cheapest option is not always the best. If you take out insurance through standard comparison websites and focus mainly on the price, it may come back to bite you.
If you are buying a new vehicle, find out how personalised number plates (SPZ na přání) work.
