By taking out an insurance contract, the insurer and the insured agree to respect certain rights and obligations. However, this contract can be terminated, either on your own initiative or due to events. But why end it? This article will show you the reasons for terminating a contract and how to proceed.
Refusal of a Premium Reduction
The calculation of your premium is based on the size of the potential loss risk. If you find that these risks have decreased since you purchased your policy, you have the right to request a premium reduction from your insurer. In general, you can send your request via a letter, an e-mail, or a declaration to your insurer’s head office and a legal document. If your insurer refuses your request, you have the right to terminate your contract at any time after the expiry date from the second year of insurance. This concerns mainly car insurance, supplementary health insurance, multi-risk home insurance, and additional good or service insurance.
Moving, Retirement, Marriage or Change of Professional Activities
Three months after one of these events, you can request the cancellation of your contract if the change of situation directly impacts the risk covered.
Purchase, Inheritance or Donation of a Vehicle or Boat
Once any of these assets are in your possession, the insurance contract is immediately void of coverage. A 10-day notice is required to request cancellation. The policy automatically terminates 6 months after the sale if no request is made.
In all three cases, the termination will not be effective until one month after receipt of the request and entitles the new owner to a refund of the premium not covered due to the termination. In addition, it is up to the new insurer to request the cancellation on your behalf if it concerns automobile, home, and complementary health insurance. It must also ensure the continuity of your coverage between the old and the new insurance.
Sale or Transfer
If you have just sold an asset (except a car or a boat), you can immediately cancel the contract attached to it. The cancellation is effective as soon as the insurer is notified.
The Loss of the Property
If you have lost your property permanently due to an event not covered by the contract, the insurance contract also ends.
Following a claim, the insurer can terminate the contract if this option is included in the general conditions. The same applies to other agreements you have taken out within one month of being notified of the cancellation.
You can also wait until the end of your contract to cancel it without any reason:
You can cancel your insurance contract every year by notifying your insurer at least two months before the end of the agreement for your request to be valid. You will receive a written acknowledgment of receipt from the insurer afterward.
Opposition to the Renewal of the Contract at the End of the Term
Individual insurance contracts for individuals are automatically renewed for another year at the end of the contract. However, you can object to this automatic renewal. Your insurer must remind you of the deadline for terminating your contract. Once you have received this notice, you will have 20 days to request that the contract not be renewed. If your insurer has not notified you, you can freely cancel your contract from the renewal date. The cancellation is effective from the next day.
Furthermore, it should be noted that life insurance policies are not affected by the annual cancellation and renewal opposition.