Gone are the days when you remained loyal to your insurance company all your life, or even from father to son! Cultural changes, constant search for the best quality / price ratio, systematic competition, need for renewal, there are many reasons for changing car insurance. And all the more so as the legislator has largely allowed individuals to look elsewhere when the grass seemed greener to them.
The so-called Hamon law indeed authorizes policyholders to terminate their insurance contract at the end of the first year, without notice and without having to provide explanations! But that would be forgetting that insurers can also terminate a contract unilaterally. Overview of the thousand and one possible and imaginable terminations. Let’s go !
Insurance cancellations at the initiative of the insured
A first reason for auto insurance termination makes sense: you part with your vehicle by selling it or giving it away. Whether or not you decide to acquire a new automobile, the termination of your contract is then necessary without discussion. If you paid in advance, your insurance will reimburse you for the overpayment at pro rata temporis.
You can also decide to cancel your insurance on the anniversary expiry of your automobile contract. Especially if you have found cheaper elsewhere after using an online auto insurance comparator like LeLynx.fr.
The Hamon law now authorizes you to cancel your auto insurance whenever you want after your first year of employment! In this case, it is your new insurer who, if you wish, will take care of all the steps to complete the termination.
Note that there is also the Chatel law, which obliges auto insurance companies to send you a notice of expiry between 3 months and 15 days before the expiry date of your contract, thus avoiding the automatic renewal of your insurance contract due to lack of information!
As you can see, nothing is really holding you back with your current insurer if you wish to terminate on your initiative.
Auto insurance cancellations initiated by the insurer
But your insurer is also free to terminate your insurer contract.
The auto insurance termination by the insurer can take the form of a contentious termination for non-payment.
Thus, if you do not honor the payment of your due dates, your insurer may decide to no longer insure you. It’s up to you to find a new company, with which you will honor your financial obligations …
Before getting there, your insurer can suspend the contract for 30 days in the event of non-payment of your auto insurance premium. During this period, your insurance obviously no longer takes into account your possible claims.
It is up to you to return to a more virtuous behavior before incurring a final termination. And not to use your vehicle under penalty of being condemned for lack of insurance in the event of control or accident …
Your insurer may also decide to break your contract to respond to a responsible claim (or a series of responsible claims) which would have cost him too dearly.
This is a reminder that insurers are not philanthropists and that risk analysis is the operating method at the heart of their business: if the balance of insurance premium received / insurance premium paid is too unfavorable (despite the penalty you will be hit), the penalty will intervene quickly!
Your insurer can also terminate your contract if you wanted to play the game with him… and you got caught! We are talking about termination for false declaration!