Unregister or deactivate your car? What is cheaper?

As a car owner, you often face the question of what to do with your vehicle when it is temporarily not needed. Should you unregister the car or rather deactivate it? This decision can have practical as well as financial implications. In this article, I want to share my experiences and insights to help you make this decision.

The Situation: Why even consider this?

There are various reasons why you might not want to use your car temporarily. Perhaps you are planning an extended trip, working abroad, or just want to take a break from driving. In such cases, the question arises of how to best handle the vehicle.

Options Overview: Unregistering vs. Deactivation

1. Unregistering the car:

When you unregister your car, the registration is canceled. The vehicle may no longer be used in public traffic, and you save on vehicle tax as well as insurance premiums. This is especially useful when you are sure that you won't need the car for an extended period.

2. Deactivating the car:

With deactivation, the car is also taken out of traffic, but unlike unregistering, the registration is retained. You continue to pay vehicle tax but are exempt from insurance obligations. This option is practical if you plan to use the car again later and want to keep the registration.

Financial Considerations: What is more cost-effective?

Unregistering:

• You save on insurance premiums during the period of absence.
• You do not pay vehicle tax for the period of deregistration.
• However, there may be additional costs when re-registering later.

Deactivating:

• You continue to pay vehicle tax.
• You are exempt from insurance premiums.
• The car is immediately available for use if needed later.

My Recommendation: Depending on the Duration of Inactivity

• Short-term Inactivity (up to 6 months):

In this case, deactivation might be the better option. You continue to pay vehicle tax, but insurance costs are waived. This provides flexibility if you need the car again shortly.

• Long-term Inactivity (over 6 months):

For longer periods, unregistering is the more economical decision. You save both insurance premiums and vehicle tax. The re-registration fees should not outweigh the financial advantage in this consideration.

Conclusion: The individual situation decides

Ultimately, the choice between unregistering and deactivating depends on your personal situation. Both options have their pros and cons. Consider how long you won't be using your car and how quickly you want it to be ready for use again. These considerations will help you make the most economical decision.