Find car insurance despite insolvency – this is how it works

The rules around personal insolvency have recently been simplified once again. Six years became three years, but the problems remain for the affected persons for the time being. Although the debts have been reduced or cancelled, the negative insolvency entry in Schufa still remains. For three years after conclusion of the insolvency the entry remains in the Schufa and loads thus the credit rating massively. Could this entry have a negative impact on your search for a new car insurance policy? And what does it look like during the insolvency phase in the first place?? Is a conclusion or a change then at all possible? We clarify.

*It may happen that we do not have all providers in the comparison calculator. If you are missing a provider, please write to us at! Powered by "see redirect"

The effect of consumer insolvency

Ultimately, consumer insolvency is positive for highly indebted individuals. You might now think that the people affected are to blame themselves, but this is not always the case. Strokes of fate, the death of a partner – over-indebtedness has already arrived, because who could shoulder a jointly taken out high loan alone?? In these times, private insolvency offers assistance in living a debt-free life after all. But:

  • Registration – every consumer insolvency is registered in the public insolvency register at the local court.
  • Schufa – Schufa learns about insolvency through public directories. This directly creates a negative entry, which is only deleted three years after the insolvency has been completed.
  • The consequences – such an entry worsens the credit rating with all information by the Schufa lastingly and massively. Although the score transmitted to the companies does not reveal that the citizen is or has been in insolvency, companies can easily guess that.
  • Debt-free – after completing insolvency, most people are debt-free. However, being debt-free only affects debts taken into insolvency with you. If new liabilities are accumulated during the phase, these continue to exist.

Sometimes, of course, the entries in the Schufa and public directories could make the search for car insurance more difficult. However, this is not an impossible task, as even the car insurance you want is possible.

No refusal: motor vehicle liability insurance

Motor vehicle liability in particular is always available in the event of insolvency. It concerns a legal obligation insurance and with this legal obligation the legislator sets also clear hurdles for the insurance companies. In plain language: a citizen cannot simply be rejected, the basic product must almost always be offered to him or her. It applies:

  • Rejection – car insurance companies can only reject customers in a few cases at all. The article mentions later which reasons speak for a refusal.
  • Referring to another product – if someone in bankruptcy asks for comprehensive coverage, the insurance company may refuse for it, but it must refer the citizen to another car insurance policy. That is: If the comprehensive cover is rejected, the partial cover can be recommended. On the other hand, a reference to simple liability is absolutely necessary.
  • The basic liability – this is the liability insurance pre-formulated by the legislator. It adheres to the minimum coverage amounts and gets by without add-ons. Every car insurance company must offer this product to the customer. If it comes to a reference to the liability insurance, most insurance companies offer however also customers in or after the insolvency at least the clearly increased variants of the motor vehicle liability insurance.

No insolvency, no debts and no negative entries in the Schufa may be used by a car insurance to exclude a customer completely from the insurance offer. There are only two exceptions:

  • Insurance fraud – anyone who, as a customer, has previously been proven to have defrauded the requested insurance company and been convicted may be turned away. However, this also applies only for a few years after the ruling.
  • Arrears – with deductions, an insurance company can reject a car owner if there are still open items with this insurance company. In practice, however, other solutions are sought here, such as payment by installments.

Better protection: comprehensive insurance despite the insolvency?

If a citizen is in insolvency, many purchases and financial considerations often have to be discussed with the insolvency administrator. Often the purchase of a car is also included, however, there is usually nothing to prevent this from being done. Since anyone facing insolvency is required to generate income to at least partially service the debt, owning a car is considered a necessity. Of course, this only applies to appropriate vehicles. The Tesla must usually be exchanged for a cheaper car.

This appropriateness, however, does not affect the type of car insurance. This means that fully comprehensive or partial comprehensive insurance is also possible during insolvency. The prerequisite is financial capability, and there is often only a marginal difference in cost between partial coverage and liability coverage. And how do car insurance companies act when a motorist in insolvency requests comprehensive insurance? Not much, because quite a few factors help the driver:

  • Prepayment – a car insurance is always paid in advance. This applies to the monthly payment, but also for the annual. A real delay in payment is therefore not possible, because even with the monthly payment, the claim expires if the premium is not received on time. However, car insurance companies charge surcharges if short payment intervals are chosen. Any comprehensive insurance becomes cheaper if it is paid quarterly, semi-annually or even annually. With the half-yearly and annual payment method, the comprehensive insurance is always available even in the case of insolvency.
  • Award – the comprehensive insurance is on balance a profit for the car insurance, which is why it is usually offered despite Schufa records.
  • Deductible – with a higher deductible, the costs for the car insurance can be reduced again, and at the same time the chances increase, since smaller damages do not have to be paid by the insurance at all – they fall under the deductible. However, this point is tricky: The amount must always be paid. Affected persons should therefore calculate exactly what amount they always have left over. If possible, the deductible is set aside at the start of the insurance policy.

Is the hull insurance worth in bankruptcy?

It always depends on the car, but also on the financial situation. If it is possible for one to easily pay for a disc exchange out of one's own pocket? Depending on the vehicle, such a windshield can quickly cost a four-digit amount. With a cracked window, however, the use of the car is prohibited. Thunderstorms are also becoming more frequent. If one's own financial situation is strained, it often even makes more sense to insure an older car with comprehensive insurance:

  • Takeover – if you cause an accident, you are left to pay for your own costs. Not so in the comprehensive insurance, because it also covers the damage to your own car.
  • Total loss – in this case the insurance company will even cover the costs up to the value of the vehicle. For all comprehensive insurance contracts, it is important to have the new price reimbursement or the purchase price reimbursement specified in the contract for 24 months. Otherwise the insurance will only cover the residual value.

For financed vehicles, fully comprehensive insurance is an absolute necessity. In the worst case of a total loss, the old financing would otherwise have to continue to be paid, while at the same time money is needed for a new car.

The insolvency allows the motor vehicle insurance

No insolvency stands in the way of taking out a car insurance policy. At least the basic variant of motor liability must be offered to every citizen. In practice, however, it turns out that the comprehensive insurances do not exclude insolvent customers either. It is only important to make a car insurance comparison in advance. No insolvency should prevent citizens from finding the best and cheapest rate for themselves.