Auto Insurance: Cancellations and consequences
Auto Insurance: Cancellations and consequences
Since the law passed Chatel 1 August 2005, the insured has the unique opportunity to cancel their auto insurance at year's end. In which case, the insurance company is obligated to send you a maturity notice stating the annual premium to come, and this at least 15 days before the deadline of year's end. Then it follows a notice of expiry after which the policyholder has a period of 20 days to termination. Where the maturity notice was not provided, you are entitled to terminate the contract whenever you want.
The contract will expire on the day after you mail the letter. The insurance company then has the obligation to refund any contributions she received in advance, but it subtracts the time between renewal and cancellation. Where the notice of maturity does not get through, or if you approved too late for your deadline. Cancel your contract by sending a letter with acknowledgment of receipt.
According to the Insurance Code, it is possible to terminate his contract of insurance solely and exclusively in the following situations: when you move, if marital status is not the same, if there is a change of occupation or dismissal. However, the situation must lead to a change in risk of contract termination to be valid. For example, a move that led to no change in security for your car (even parking etc..) Will clearly not taken into account. Applicants must present documents attesting to the authenticity of your cancellation request. It was then that the company will reimburse you.
Some special cases: First, it is possible to terminate his contract following a rate increase if the contract in question provides, which is rarely the case and when it is, there is usually a close in which the Company shall increase the minimum below which no complaint will be validated. Similarly, it is impossible to terminate his contract if the rate increase due to higher risk because of the insured.
Then, the termination by non-payment of maturity is possible but costly. After you have granted 30 days of recovery, then 10 additional days, the company terminate your contract but will ask for damages, including the entire fee.
Finally, some advice: do not confuse anniversary date and expiration date, read your contract well. Keep written proof of your decision to terminate. In case of problems please contact the hierarchy of your insurer. Do not ignore the notice. These tips will be highly useful, follow. The law Chatel is a real breakthrough for us as consumers, the fact remains that the termination of automobile insurance is a long and fraught with pitfalls.
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