Usually, motor vehicle insurance in Europe is an annual term. Unless otherwise specified, the term is only completed a year from the date taken out. This description refers to the natural life-span of an European car insurance policy.
If you need to cancel your European auto-insurance contract car officially, the cancellation must be arranged in writing, within a period no less than 30 days before the insurance policy is due to expire. If you miss this deadline, insurance companies tend to continue the auto-insurance policy automatically for another calender year.
However, after the expiry of the date of cancellation, there may be another chance to bring the policy to an end. European auto-insurance premiums tend to be adjusted yearly in line with EU automobile insurance industry regulations.
This adjustment is carried out by an independent body to obtain the insurance statistics on accident incidents and car traffic damage. As an example, if due to an increase in traffic incidents in the region you reside or visit, your EU car insurance premium increases, this will bring about what is known as “extraordinary right of termination.”
In most circumstances you will receive a written notice from your European auto-cover provider telling you of the fee increase. No later than a month after receiving this notice of an increase in your premium, you can execute your right to cancel your policy via the extraordinary right of termination clause..
If you are simply renting a vehicle during your trip to Europe, the auto-leasing company will have the cost of auto-insurance included in your hire rate.