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Car insurance is essential in the modern world, and compulsory in most countries. However, there are a huge range of car insurance policies available, which can make it difficult when it comes time to choose. In most cases, car insurance products work through a contract, and provide protection for a stipulated time period in exchange for the price of ongoing premiums.
This means it is not easy to cancel a car insurance policy, and may even be impossible in many cases. While car insurance cancellation (Kündigung Autoversicherung) can occur from insurance providers, customers can normally only cancel a policy at the end of a contract period. However, when it comes time to renew a car insurance contract, customers are free to change insurance providers or cancel a product altogether. Insurance firms may cancel a car insurance policy in the middle of a contract period if they have evidence of fraud, and low credit ratings and bad driving history can also lead to product cancellation in some cases.

While car insurance cancellation may not be easy within a contract period, it is easy to change and cancel an insurance policy once a contract has expired. Many people use insurance comparison websites as a way to compare and contrast insurance policies and save themselves some money for the next year. Many of these comparison websites have the ability to compare contracts based on a number of independent criteria, with users able to compare policies according to the price of premiums, the level and type of insurance, and the amount of excess. Policies can also be compared directly from insurance providers, by visiting their websites or making phone calls to obtain quotes.

Car insurance is known by many names, including auto insurance, gap insurance, motor insurance, and vehicle insurance. It is one of the most widely used insurance products in the world, and is mandatory in many jurisdictions around the world. In most countries, some form of third party protection is compulsory before people are allowed to drive on public roads, with various schemes available that link third party coverage to car registration, taxation, and pay as you drive systems. While it is mandatory to have some form of third party protection in most cases, customers have the ability to cancel and change policies at the end of any contract period.