Are you wondering how to end your vehicle insurance? It is not always easy to navigate among the various steps to take to change insurer. Do not panic, we will show you the procedure to proceed with your auto insurance cancellation. Complete your information by clicking here.
The Hamon law facilitates termination procedures
Before proceeding with the final auto insurance cancellation, you must find a new insurer, and a new contract to which to subscribe for your vehicle. This will give you a mandate in which it is stipulated that you authorize him to contact your former insurer to cancel your previous insurance.
Since the entry of the Hamon Law of March 17, 2014, you no longer have to take any action following the signing of this mandate. For more information on this law, you can visit this site.
It is your new insurer who takes care of contacting your old insurer, and announcing your decision to terminate the previous contract. It is therefore he who will proceed with the administrative procedures. Your old contract will be void after one month, on the date your new contract comes into effect.
To understand the main issues of the Hamon Law
In which cases can you terminate your contract?
You may need to cancel auto insurance if your contract comes to an end. It can be an opportunity to make work the competition which would have offered you more attractive promotional rates.
In addition, if your insurance contract no longer suits you, because your insurer has increased the insurance premium, you can completely cancel your contract. For more details on these points, you can consult this article.
You will not incur any penalty for this auto insurance termination procedure. Once your termination is registered and effective, you will only have to pay the insurance premium for the period during which you have benefited from this coverage.
How long am I employed with my insurer?
Since the reform of the Hamon Law, you have the right to terminate auto insurance after one year of engagement with your insurer. At the end of this year, you will of course be able to terminate the auto insurance. However, there are special cases if you want to terminate your contract before it expires, so before one year. These are as follows:
- Sale of your car: in this case you must send an auto insurance cancellation letter to your insurer, and the latter will cancel your contract. The effective date of cancellation is ten days from the date of sending your letter.
- Theft or loss of your vehicle: you must send a registered letter to your insurer to inform them of the situation of your car, and the contract will end the day after receipt of your letter.
- Moving: you have three months from the date of your departure to inform your insurer of the termination of your contract.
Beware of the tacit renewal of the contract
You should know that an insurance contract is tacitly renewed. If you wish to terminate your contract for a while, do not miss the mark, otherwise the contract will be valid again for a period of one year.
Rest assured, since the Chatel law, insurers have the obligation to warn you as the expiry date of your contract approaches, between three months and fifteen days before the end of the contract. If your insurer fails to inform you, you therefore have the right to terminate your contract at any time.