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Legal Changes 2026

Car Insurance 2026: New Laws for Consumers

Expat Guide / Written for Newcomers

Cancellation button (June 19), new product liability (Dec 9), and eCall updates. Your rights as a consumer in Germany.

Key German Terms You Need to Know

Kuendigungsbutton

Cancellation button

Produkthaftung

Product liability

eCall

Emergency call system

Verbraucherrecht

Consumer rights

Widerrufsrecht

Right of withdrawal

Gesetzesaenderung

Legal change

EU-Richtlinie

EU directive

Kuendigungsfrist

Cancellation period

Good News for Expats

German consumer protection is among the strongest in Europe. These 2026 changes make it even easier to manage your insurance - especially the cancellation button, which removes language barriers when ending contracts.

2026 Legal Changes Timeline

June 19, 2026

Cancellation Button

Easy online contract termination

Upcoming

December 9, 2026

Product Liability Reform

New EU product liability rules

Upcoming

Ongoing

4G/5G eCall Transition

2G/3G phase-out affects car emergency systems

Active
1

Cancellation Button (June 19, 2026)

The "Kuendigungsbutton" (cancellation button) requirement is a major win for consumers. Here is what it means:

What Changes

  • All insurers must provide an online cancellation button
  • Button must be as easy to find as the sign-up button
  • Immediate confirmation of cancellation required
  • No more phone calls, letters, or fax required

Before (Until June 18)

  • - Written letter required
  • - Often need to call
  • - Hidden cancellation process
  • - Days or weeks waiting

After (From June 19)

  • - Click a button
  • - Confirm online
  • - Instant confirmation
  • - Done in minutes

For Expats: Language Barrier Gone

No more struggling to write formal German cancellation letters or understanding phone agents. A button click is universal - this makes managing insurance much easier for non-native German speakers.

2

Product Liability Reform (December 9, 2026)

New EU product liability rules take effect on December 9, 2026. This affects car owners and insurance in several ways:

Software Defects Included

Software and AI systems are now covered by product liability. If your car's autonomous driving feature causes damage due to a defect, the manufacturer is liable.

Easier Claims Process

Consumers no longer need to prove the specific defect. If a product is likely defective based on circumstances, the manufacturer must prove it is not.

Extended Coverage

Data loss and psychological harm are now covered alongside physical injury and property damage.

What This Means for Insurance

Insurers may adjust policies to reflect new manufacturer liabilities. If a software defect causes an accident, the claim might go to the manufacturer instead of your insurance - potentially protecting your no-claims bonus.

Know Your Rights, Compare Your Options

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3

eCall System: 4G/5G Transition

eCall is the automatic emergency call system required in all new cars since 2018. It automatically alerts emergency services in a severe crash.

The Network Problem

2G/3G Networks Shutting Down

German mobile operators are phasing out older networks. Cars with 2G/3G eCall may lose emergency call capability.

Affected Vehicles

Cars from 2018-2021 typically have 2G/3G eCall. Newer models usually support 4G. Check with your manufacturer.

Insurance Implications

Some insurers offer discounts for working eCall. If your system stops working, check if it affects your premium or coverage.

Action Required

  • - Check if your car's eCall uses 2G, 3G, or 4G
  • - Contact manufacturer about possible upgrades
  • - Inform your insurer if eCall stops working
  • - Consider a smartphone-based emergency app as backup
4

Your Existing Consumer Rights

Beyond the 2026 changes, here are important rights you already have:

14-Day Right of Withdrawal

For online insurance contracts, you can cancel within 14 days without reason. The clock starts when you receive policy documents.

Special Cancellation Right

If your premium increases, you can cancel within 1 month. Also applies after any claim - you and the insurer can both cancel.

Annual Switching Period

Cancel by November 30 to switch insurers on January 1. Most car insurance policies in Germany run calendar year.

Ombudsman for Disputes

The insurance ombudsman (Versicherungsombudsmann) resolves disputes for free. Decisions are binding on insurers for claims up to 10,000 Euro.

Frequently Asked Questions

Do the new laws apply to existing contracts?

Yes, the cancellation button requirement applies to all contracts, including existing ones. Product liability changes apply to products manufactured after December 9, 2026.

Will insurance premiums increase due to new laws?

The cancellation button should not affect premiums. Product liability changes might lead to adjustments as manufacturers and insurers adapt, but this is still unclear.

What if my insurer does not provide a cancellation button?

After June 19, 2026, insurers who do not comply face legal consequences. If yours does not have a button, report it to consumer protection authorities (Verbraucherzentrale).

Does the cancellation button affect notice periods?

No, the button only makes cancellation easier. You still need to respect the cancellation period (usually by November 30 for year-end termination). The button just replaces letters and calls.

Summary: Key Dates to Remember

  1. 1June 19, 2026: Cancellation button mandatory for all insurers
  2. 2December 9, 2026: New product liability rules take effect
  3. 3November 30: Annual deadline to cancel car insurance for year-end
  4. 4Ongoing: Check your eCall system compatibility as 2G/3G networks phase out

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