Auto insurance: the Hamon law invents easy termination!
French policyholders owe him a debt of gratitude! Before the Hamon law, policyholders had to wait for the annual due date to be able to terminate their car insurance, unless an event validated by the Insurance Code justifies early termination (see below).
Since its adoption in January 2015, the Hamon law has made it possible to terminate a large number of insurances (and your auto or motorcycle insurance in the first instance) when you wish, at the end of the first year of subscription. Overview of a measure that has changed the world of insurance.
The Hamon law revolution!
Also known as the Consumer Law, the Hamon Law (named after Benoît Hamon, then Minister for Social and Solidarity Economy and Consumer Affairs) n ° 2014-344 made it possible to promote competition and further protect consumers. It has thus authorized all French policyholders to terminate their car insurance (but also their motorcycle insurance, their home insurance, etc.) when they wish, once the first anniversary date of their contract has passed.
Concretely, it suffices that your insurance contract in progress has at least one year of age to allow you to terminate it at your convenience, without having to justify yourself to your insurer and without paying any fees or penalties.
Did you know ? According to studies, more than a quarter of French people have been forced to accept, at least once, a tacit renewal of their insurance without having wished it!
Good to know : The insurances concerned by the Hamon law are as follows:
- Auto insurance
- Motorcycle insurance
- Home insurance
- So-called affinity insurance (mobile phone, computer, etc.)
Warning : the Hamon law does not concern health insurance.
Cancel your auto insurance contract thanks to the Hamon law, instructions for use
As we have seen: the Hamon law allows cancel your auto insurance contract current whenever you want after one year has passed. To do this, you must take out new insurance before break your current contract (insuring your vehicle is compulsory in France as in many countries around the world, even if you do not use it, or very little, or even if you let it sleep in your garage).
With the Hamon law, your new insurer takes care of everything. He contacts your old insurer and takes care of the formalities:
- He sends him the termination request and asks him to send you your information statement.
- Your old contract is terminated a month later and you receive your information statement
- Within 30 days, you are reimbursed for the overpayment
- Your new contract takes over from the old one: you are always covered
Thanks to the Hamon law, it is therefore much easier to cancel and take out car insurance with a competitor or renegotiate your insurance premium with his current insurer. To be sure to benefit from a more interesting contract and therefore to make substantial savings (several hundred euros per year depending on the major part of the savings observed), it is absolutely advisable to make auto insurance simulations online through online auto insurance comparators, such as LeLynx.fr for example.
You are thus guaranteed to query all the contracts on the market all at once to find THE cheapest possible contract, precisely corresponding to the desired guarantees, the vehicle concerned, your driver profile and your budget!
Good to know : You can also decide to take the steps to terminate your auto insurance yourself. You will then need to send a registered letter with AR to your current insurer. We recommend that you use letter templates that exist online to be sure that you do not omit any mandatory information in your mail.
Forgetting a legal notice in this type of mail could have unfortunate consequences, and thus authorize your insurer not to take into account your request for termination. Following receipt of your registered letter, the termination will be legally effective within one month. Your insurer will then be obliged to reimburse you on a pro rata basis all the sums overpaid from the date of effective termination. And this within a maximum of one month.
You can sometimes cancel your auto insurance without waiting a year
In certain cases, article L113-16 of Insurance Code is more expensive than the Hamon law and allows you to bypass the one-year period to cancel your car insurance. Article L113-16 concerns what are known as personal life modifications.
The grounds for termination provided for changes in personal life are the following :
- Change of domicile
- Change of marital status or regime
- Change of profession
- Professional retirement or permanent cessation of professional activity
- Modification of guarantees or premiums imposed by your insurer (excluding increase linked to the automatic application of a penalty or percentage increase provided for in the contract)
In these specific cases, you must imperatively request termination within 3 months of the change occurring.
Good to know : to be valid, it is crucial that the change mentioned has a real impact on your insurance contract, including and especially in terms of tariffs. So, if you are moving from a small provincial town to Paris, there is a good chance that your insurance premium experience a significant increase, which will legitimize your possible wish to terminate. Conversely, if your move has no impact on the amount of your auto insurance premium, there is a good chance that your termination attempt will be doomed to failure.
Do not forget the Chatel Law which can also be very useful for canceling your car insurance!
Dating from 2005 (10 full years before the Hamon law), the Chatel law was adopted to avoid the tacit “invisible” renewal of current contracts. Before the Chatel law, a large number of policyholders forgot the expiry date of their insurance and saw their contracts renewed for an additional year without being able to oppose it.
The Chatel law corrects this state of affairs: since 2005, insurers have been required to send a notice of maturity. between 3 months and 15 days before the expiry date of the contracts concerned. If they fail to comply with this obligation, then you can terminate your contract at any time regardless of the grounds for termination. In the event that you receive your notice of expiry after the deadline (less than 15 days before the expiry date of the contract), you have 20 days to request the possible termination of the contract.
The Consumer Law: the Hamon law, the entire Hamon law
The Hamon law is today mainly known for the immense progress it has enabled to facilitate the termination of insurance (auto, motorcycle, home and affinity, as we have seen) after one year of contract. But the Consumer Law (the other name of the Hamon law) is much more than that. A veritable Prévert-style inventory, the Consumer Law has made it possible to precisely regulate the “homemade” used on restaurant menus.
It has also extended geographical indications to handicrafts and manufactured products. It also imposed quarter-hour pricing in car parks and a minimum 2-year warranty for household appliances.
Did you know ? Without the Consumer Law, you would not be able to order your glasses online or benefit from an extended withdrawal period for your online orders and purchases. Without the Consumer Law, there will also be no red lists in terms of telephone canvassing, provisions combating over-indebtedness or allowing (under certain conditions) group actions to take legal action.