I bought an used car and trade-in my existing car. My current insurance company sent me a new contract but I found better deal elsewhere. Can I simply cease the current contract of my old car and start a new contract with other insurance company? If so, I assume the remaining of the premium will be returned to me?
Oh, and one more thing I'm not sure about. My old car's agent sent me an email saying "We already established the proof of insurance to register the car at the traffic department" but I haven't signed anything yet for the new contract. Does that mean I'll have to use the original insurance company because they had established "proof of insurance"?
Also in the new contract I found it says "Insurance term: 5 years"
Does that mean if I take that contract, I can't change insurance company for 5 years?
When you traded in the old car, you gave them your gray card. The dealer used that to look up your info and contact your current insurance agent. Said agent confirms "Yep, he's with us." So the dealer sends the paperwork to the canton to be approved and get your license plates. So that's the proof of insurance bit.
While I think the new vehicle prompts your agent to issue a new contract, I don't think it obligates you to sign the contract and stick with the agent. Your original contract was for vehicle X and your new one is for vehicle Y. But there might be some clause in there about penalty fee, etc. What does the contract for the old car say about cancellation terms?
And yes, if you sign the new one it sounds like you're obligated for 5 years.
Thanks for the detailed explanation. I was a bit hesitated about changing the contract since the agent looks like a nice sales person. However on the other hand there is around 500CHF difference between the two contracts. I can bear with it if it's for the first year, but if I have to stay with them for 5 years, then seems to me I had better change it earlier.
The new insurance company I would like to switch to is Zurich Connect. If I request for the offer from Comparis, it could start immediately and the quotation is valid for 30 days. However, if I go to their website, it says I'll have to wait for 5 days for it to be effective. I'm going to pick up the new car on this Friday, so I'll either delay picking it up or use the version from Comparis instead? The reason why I want to get it from Zurich Connect directly is it provides more options to customize my contract.
In CH number plates are considered an attribute (so to say) of the owner, as opposed to some other countries where they're considered attribute of the car. Thus no need for new plates when changing the car.
Your initial point b), namely selling the car allows you to cancel your existing insurance, is correct. But you need another insurance (Versicherungsnachweis, proof of insurance) before you're allowed to drive the new car with your number plates.
Proof of insurance simply means the acknowledgement by the insurance that they're willing to insure the new car. If you want to cancel you most probably need to do that before bringing your new car into circulation, and the sooner the better. If you can do a few days without a car it's probably best to wait for acknowledgment of cancellation before signing the new contract.
The new insurance company wants to bind you as long as possible, there's no need for you to accept that - demand shorter minimal duration and threaten to walk away if they refuse. Presumably the sales agent is paid by premium volume generated so he personally has an interest in those 5 years minimum duration. OTOH you can always transfer car ownership to whomever you like and cancel your then-current insurance, doesn't matter if those 5 years have passed or not.
One more thing:
Your old insurance may make you a better offer if you talk to them
Maybe the new insurance simply gives you a better rebate. And of course, less expensive doesn't mean better (except, I think, for 3rd party liability which may be the same for every company).