If you are going abroad for a semester or an internship, you may wonder whether you can put your car insurance on hold (Kfz-Versicherung ruhen lassen). Being abroad does not suspend German motor insurance by itself. Under typical terms, a premium-free dormant cover only becomes possible once the vehicle has been deregistered with the vehicle registration authority (Zulassungsbehörde). This guide explains what follows from that. For the wider picture, see Insurance for students: an overview (in German).
In short: Living abroad does not suspend your motor insurance. If you temporarily deregister the vehicle, some insurers convert the policy into a premium-free dormant cover (Ruheversicherung). It is often limited in time, in an example rule to at most 18 months. Your own policy terms decide the details.
Key points
- Without deregistration, your motor insurance and its premium continue even if you are away for months.
- After a temporary deregistration, a premium-free dormant cover remains in place at many insurers, provided the terms foresee it (GDV model terms, section H.1).
- The duration is set in your contract. In the example rule it ends after 18 months without any notice of termination.
- In that example the vehicle must stand in a garage or on an enclosed parking space while the cover is dormant.
- If you want to use the car abroad, you need a running policy with foreign cover (green card) instead.
Does my motor insurance pause automatically while I am abroad?
No. The contract is tied to the registered vehicle, not to where you live. As long as the car is registered, the duty to carry motor liability insurance continues and premiums stay due. This also applies if the car sits in your parents’ garage and you do not move it.
If you will not need a vehicle for a longer time, you essentially have three options: deregister it and use the dormant cover, sell it, or let the contract run unchanged. Which one fits depends on the duration. For a few weeks, deregistration hardly pays off, because some terms require a minimum length of deregistration, two weeks in the example rule.
What is the dormant cover and when does it apply?
The dormant cover is a restricted insurance protection for a deregistered vehicle. The GDV model terms devote a separate section to taking a vehicle out of service (H.1). The exact design depends on your insurer’s terms. The example below illustrates a rule of the kind that can appear in policy terms. It is not universal, and your own contract terms prevail.
| Point | Example rule (not universal) |
|---|---|
| Trigger | The registration authority reports the deregistration and the contract becomes a premium-free dormant cover |
| Exceptions | Deregistrations of less than two weeks, or a wish to continue without restrictions |
| Scope | Motor liability, plus partial cover (Teilkasko) if comprehensive or partial cover existed |
| Premium | Free of charge |
| Duty of the keeper | Vehicle stays in a garage or enclosed space, no use outside it |
| Duration | At most 18 months from deregistration, then the contract ends without notice |
| Re-registration | Report promptly, the original cover then revives |
These values come from the terms of one insurer and are not a general rule. Other insurers may use shorter or longer periods and other exceptions. Your policy documents are decisive.
What happens to my no-claims class while the contract is dormant?
An interruption of cover affects your claims record. In the GDV model terms, section I.6 deals with the transfer of a claims record, including I.6.3 on interruptions. The example rule names three tiers for the year of the interruption. For more on how the class works, see No-claims class transfer.
| Length of interruption | Treatment of the claims record (example rule) |
|---|---|
| Up to 6 months | The record carries on as if nothing had been interrupted |
| More than 6 months up to 7 years | The record from before the interruption is taken over |
| More than 7 years | The claim-free record is not taken over |
For the following year in that example: if cover lasted at least six months in the year of transfer, the contract is classified as if it had run for a full calendar year. If it lasted less than six months, no upgrade takes place despite a claim-free record. For a new driver with little driving experience, this can be a reason to keep the contract running instead of interrupting it for long.
What applies if I want to use the car abroad?
Then dormant cover is not an option, because a deregistered vehicle may not be driven on public roads. You need a registered vehicle with a valid contract. Whether and where cover applies abroad depends on your scope of cover and the green card, see Green card: when motor insurance applies abroad (in German). For a longer stay, also check whether your licence and registration are recognised in the host country. The registration authority and the relevant foreign mission can answer that.
When is selling or cancelling the better option?
According to ADAC, a permanent deregistration ends the contract and overpaid premiums are refunded (page dated 2 November 2026). If you will not need your own car after the semester abroad, you can sell the vehicle. On a sale the contract generally passes to the buyer and you must report the sale to the insurer without delay (section G.7 of the model terms). If the car is scrapped, the contract ends through loss of the insured risk (G.8).
If you need a car again later, a new contract with a new vehicle may be required. See Changing vehicles: plates and insurance (in German). How to end a contract formally is covered in Cancelling motor insurance: template, deadlines and proof.
Example: six months abroad
Assumption: The contract has its main due date on 1 January. The car is deregistered on 1 April and registered again on 1 October, six months in between. The framework of the example rule applies.
- For the six months there is premium-free dormant cover with liability and, where applicable, partial cover.
- The interruption does not exceed six months, so in the example your claims record is carried on as if nothing had been interrupted.
- After re-registration the original cover revives and you report the end of the deregistration without delay.
If the stay lasts 20 months instead, the dormant cover in the example ends after 18 months without notice. A continuation is then only possible on special request against a premium. Asking your insurer early avoids this.
Frequently asked questions
Do I have to tell my insurer that I am going abroad?
A longer absence does not change the contract by itself. Report changes to risk characteristics, such as a new main user or a new parking location. Whether a stay abroad counts is regulated by your policy terms.
Can I suspend the policy without deregistering the car?
Under the terms reviewed here, premium-free dormant cover requires deregistration by the registration authority. Without it the contract stays in force and the premium remains due. You can still ask, as individual insurers offer different solutions.
What about a seasonal licence plate?
A seasonal plate is valid only for a fixed period of the year. The GDV model terms treat this separately (section H.2). If your stay falls in the off-season, it may matter for how premiums are set. Ask your insurer for its specific rule.
Does dormant cover apply to vehicles with an insurance plate?
Whether special cases such as vehicles with an insurance plate or trailers are covered by such a rule is stated in the respective terms.
How do I keep my health insurance while abroad?
That is a separate topic. See Health insurance for students with plans abroad (in German) for orientation.
What to do now
- Clarify how long you will be away and decide whether you will use, park or sell the car.
- Read the section on taking the vehicle out of service or dormant cover in your policy terms.
- Ask the insurer about deadlines, duties while parked and the effect on your no-claims class.
- Deregister the vehicle with the registration authority and keep the confirmation.
- Plan re-registration early and report the end of the deregistration without delay.
If you would like to discuss car, liability and stay-abroad cover in person, the page How we work describes how an Academycon consultation runs.
Related guides
- Insurance for students: an overview (in German)
- Green card: when motor insurance applies abroad (in German)
- Cancelling motor insurance: template, deadlines and proof
- Changing vehicles: plates and insurance (in German)
- Health insurance for students with plans abroad (in German)
Sources: ADAC, special termination right in motor insurance, page dated 2 November 2026 (in German); GDV model motor insurance terms (AKB 2015, version 10.2017, in German).
Last updated: November 2026. This guide is general information, not individual advice.
