Car insurance (motor vehicle): termination of contract

Verified 01 July 2023 - Legal and Administrative Information Directorate (Prime Minister)

Do you want to cancel your car insurance contract without having to pay penalties?

This is possible if you request termination at the annual deadline or for a reason provided by the contract or the regulations.

Your insurer also has the right to terminate the contract under certain conditions.

We present you with the information you need to know.

The termination rules apply regardless of your nationality and regardless of the length of your stay in France.

Termination by the insured

You can request the cancelation of your car insurance at each annual deadline, after the first year of contract, and in other cases provided by law or contract.

You have the right to terminate your home insurance contract at the first annual due date (on the date on which the premium payment is called).

The first annual maturity date is 1er anniversary of the signing of the contract.

The insurer is required to send you an information notice reminding you that you have the right to terminate the contract at the first annual term.

The Information Notice must specify the date of this first deadline and the deadline by which you can submit a request for termination.

This notice should at least come to you 15 calendar days before the deadline by which you can request termination of the contract.

You have the right to request termination after receiving the information notice, but you can also request termination without waiting for that notice.

Termination after receipt of the information notice

The situation varies depending on whether the insurer has sent the information notice on time or not.

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The information notice shall be sent on time

If the insurer sends you the information notice at least 15 calendar days before the deadline to request termination, you must send your request for termination to the customer before that date.

You do not have the right to send the cancelation request to your insurer yourself, as your vehicle may end up without insurance after the cancelation.

Car insurance is mandatory and your vehicle must be insured at all times.

To ensure that your vehicle is insured without interruption, the law requires you to take out new insurance that will take over before terminating your current insurance.

And it is the insurer with whom you will take out the new contract that must send your request for termination to the former insurer.

Termination will be effective on the date of the annual due date.

The information notice shall be sent after the expiry of the period

If the insurer sends you the information notice less than 15 calendar days before the deadline to request termination, you must send your request for termination to the customer in 20 calendar days according to the date of dispatch of the notice.

The same applies when the insurer sends you the information notice aafter the deadline to request termination.

The period of 20 calendar days is from the date on the postmark or the date of sending of the certified mail by time stamp.

You do not have the right to send the cancelation request to your insurer yourself, as your vehicle may end up without insurance after the cancelation.

Car insurance is mandatory and your vehicle must be insured at all times.

To ensure that your vehicle is insured without interruption, the law requires you to take out new insurance that will take over before terminating your current insurance.

And it is the insurer with whom you will take out the new contract that must send your request for termination to the former insurer.

The cancelation request must be sent to your insurer by one of the following means:

  • Online if the contract has been signed online or if, at the time of termination, the insurer offers online subscription
  • Paper Letter
  • On-site declaration at the insurer's head office or at the insurer's representative's place of business (general agent, broker)
  • Extrajudicial Act (via a Commissioner of Justice)
  • Remote communication mode, when the contract has been concluded by this means (mail, telephone, etc.)
  • Any other means provided for in the contract

The insurer did not send an information notice

If the insurer has not sent you any information notice, you can request the termination of the contract at any time after the expiry date, without penalty.

You do not have the right to send the cancelation request to your insurer yourself, as your vehicle may end up without insurance after the cancelation.

Car insurance is mandatory and your vehicle must be insured at all times.

To ensure that your vehicle is insured without interruption, the law requires you to take out new insurance that will take over before terminating your current insurance.

And it is the insurer with whom you will take out the new contract that must send your request for termination to the former insurer.

Termination takes effect the day after the date on which your new insurer sends the termination request.

The insurer must reimburse you within 30 calendar days the part of the premium corresponding to the period following termination.

Otherwise, he will have to pay you interest on that amount at the legal rate.

Termination before the Information Notice

If you want to terminate your car insurance without waiting for the insurer's information notice, you must notify the insurer 2 months before the date of the annual deadline.

You do not have the right to send the cancelation request to your insurer yourself, as your vehicle may end up without insurance after the cancelation.

Car insurance is mandatory and your vehicle must be insured at all times.

To ensure that your vehicle is insured without interruption, the law requires you to take out new insurance that will take over before terminating your current insurance.

And it is the insurer with whom you will take out the new contract that must send your request for termination to the former insurer.

Termination will be effective on the date of the annual due date.

The auto insurance contract is generally a tacit renewal contract, meaning that it is automatically extended every year.

You can terminate this type of contract at any time, after 1re year, without having to justify, and without waiting for the next annual deadline.

There is an exception if you are a professional or if you signed the contract as part of your professional activity.

You do not have the right to send the cancelation request to your insurer yourself, as your vehicle may end up without insurance after the cancelation.

Car insurance is mandatory and your vehicle must be insured at all times.

To ensure that your vehicle is insured without interruption, the law requires you to take out new insurance that will take over before terminating your current insurance.

And it is the insurer with whom you will take out the new contract that must send your request for termination to the former insurer.

Termination of the contract will take effect 1 month after the insurer has received your request.

You will be reimbursed the portion of the premium corresponding to the remaining contract period.

Under certain circumstances, you can terminate your contract regardless of the due date, even if it is before the end of the first year.

These are cases where there is a change in your personal life that changes the risk insured by the contract:

  • Change of domicile
  • Change of marital status
  • Change of matrimonial regime
  • Change of professional activity
  • Retirement or permanent cessation of professional activity

You have an obligation to inform your insurer of any changes that may affect your contract.

You must inform the insurer in the 15 calendar days the change of situation, by registered letter.

You can request the termination of the contract for a change of situation before the expiration of a period of 3 months from the event date.

A justification for the change in circumstances invoked must be provided.

The cancelation request must be sent to your insurer by one of the following means:

  • Online if the contract has been signed online or if, at the time of termination, the insurer offers online subscription
  • Paper Letter
  • On-site declaration at the insurer's head office or at the insurer's representative's place of business (general agent, broker)
  • Extrajudicial Act (via a Commissioner of Justice)
  • Remote communication mode, when the contract has been concluded by this means (mail, telephone, etc.)
  • Any other means provided for in the contract

Termination takes effect 1 month after the date of its notification to your insurer.

If you sell or give your vehicle to a third party, you can cancel the insurance contract.

Carte grise The contract shall be suspended the day after the date of transmission mentioned in the

You can ask your insurer for the cancelation with a notice of 10 calendar days.

The cancelation request must be sent to your insurer by one of the following means:

  • Online if the contract has been signed online or if, at the time of termination, the insurer offers online subscription
  • Paper Letter
  • On-site declaration at the insurer's head office or at the insurer's representative's place of business (general agent, broker)
  • Extrajudicial Act (via a Commissioner of Justice)
  • Remote communication mode, when the contract has been concluded by this means (mail, telephone, etc.)
  • Any other means provided for in the contract

You can use the following letter template:

Terminate insurance following the sale of his vehicle

If you die, your car insurance contract is not terminated.

It continues to cover your vehicle, but your heirs have the right to pursue or terminate it.

If your heirs choose to let the contract continue, they must continue to pay the contributions.

If the heirs decide to terminate the contract, they must send a request for termination to the insurer.

The cancelation request must be sent to your insurer by one of the following means:

  • Online if the contract has been signed online or if, at the time of termination, the insurer offers online subscription
  • Paper Letter
  • On-site declaration at the insurer's head office or at the insurer's representative's place of business (general agent, broker)
  • Extrajudicial Act (via a Commissioner of Justice)
  • Remote communication mode, when the contract has been concluded by this means (mail, telephone, etc.)
  • Any other means provided for in the contract

Termination of the contract will take effect 1 month after receipt of the letter of termination by the insurer.

Only premiums relating to the period following the effective date of the termination shall be refunded.

You can request termination of the contract if the insured risk has decreased and the insurer refuses to lower the contribution amount.

You must inform the insurer in the 15 calendar days the reduction of the insured risk, by registered letter. Justification for the reduction in insured risk must be provided.

Example :

Loss of value of the vehicle insured for material damage.

You can request termination if the insurer refuses to lower the premium.

The cancelation request must be sent to your insurer by one of the following means:

  • Online if the contract has been signed online or if, at the time of termination, the insurer offers online subscription
  • Paper Letter
  • On-site declaration at the insurer's head office or at the insurer's representative's place of business (general agent, broker)
  • Extrajudicial Act (via a Commissioner of Justice)
  • Remote communication mode, when the contract has been concluded by this means (mail, telephone, etc.)
  • Any other means provided for in the contract

Termination of the contract will take effect 1 month after receipt of the letter of termination by the insurer.

If you have several insurance contracts with an insurer and they terminate, for example, your car insurance contract as a result of a blood alcohol or narcotic use accident, you can then terminate the other contracts. This option open to the insurer must be provided for in the contract.

You must make the request for termination within the deadline 1 month after the insurer notifies you of the loss termination.

Termination of other contracts will take effect 1 month after they have been notified to the insurer.

You can request the cancelation of your insurance in all situations where the contract provides for it.

Example :

In the event of a rate increase by the insurer.

You can request the cancelation of your car insurance when the insured vehicle becomes technically or economically irreparable and you do not accept the compensation offered by the insurer.

In this case, you must provide proof that the vehicle has been taken off the road ( proof of destruction of the vehicle) or that it is insured with another insurer.

Termination by the insurer

Your insurer has the right to terminate the car insurance contract against you without penalty.

It may do so at the end of the year or for reasons provided for in the contract or in the law, but it must justify the reason for termination invoked.

The insurer must also notify you within a certain period of time and inform you of the date when you will no longer be covered.

Your insurer has the right to terminate your contract every year, without having to justify it.

He must inform you of his decision to terminate the contract at least 2 months before the due date, by registered letter.

The insurer can terminate the contract if you do not pay the premiums.

If you have not paid the contribution within 10 calendar days depending on the due date, the insurer may send you a reminder.

For this, he sends you by registered letter of formal notice of settlement of the premium under 30 calendar days.

If you do not regularize your situation in the 30 calendar days, the insurer may terminate the contract on 10 calendar days after the expiry of that period.

The premium or part of the premium corresponding to the period of coverage remains due to the insurer, even if the contract has been terminated.

If the insurer finds that you have misrepresented or omitted something, it may terminate your contract.

He must send you, by registered letter, a notice of termination indicating the false declaration or omission on which his decision is based.

Termination occurs 10 calendar days afterwards.

Contributions for uninsured periods will be refunded to you.

You must inform your insurer of any changes that may affect your contract, within 15 calendar days, by registered letter or by electronic registered mail.

Example :

Using your personal car for business purposes or having your young driver use your car.

The insurer may consider a change to be a increased risk, compared to the initial situation.

He or she may notify you after becoming aware of the change either a refusal to cover the new risk or a proposal to increase your contribution.

If the insurer notifies you of a denial of coverage, the termination will be effective 10 calendar days after such notification.

Similarly, if you do not respond favorably to the proposed rate increase notified by the insurer, the termination will be effective 10 calendar days after notification of that proposal.

If the insurer offers you a rate increase and you refuse it, the contract will be terminated 30 calendar days later.

Unused contributions will be refunded in the 2 cases.

However, if, after being informed of a possible aggravation of the risk, the insurer has continued to collect premiums or has agreed to compensate a claim, he will no longer be able to terminate the contract.

The insurer may terminate the contract as a result of certain claims, and for this reason, if so provided for in the contract.

First, there are accidents in which you were under the influence of alcohol or drugs.

It also covers accidents caused by an infringement of the rules of the road leading to a judicial or administrative decision to suspend the driving license for at least one month, or a decision to cancel the license.

The insurer must notify you of its decision to terminate the contract by registered letter.

Termination occurs 30 calendar days after such notification.

The insurer must then reimburse you for the portion of the contribution that corresponds to the remaining period until the next due date.

You can also request the cancelation of other contracts signed with the insurer within one month of the notification of this cancelation.

FYI  

if the insurer has accepted payment of a premium or part of an insurance premium 30 calendar days after having been informed of a claim, he can no longer terminate the contract.

Termination following death

If you die, your car insurance continues to cover your vehicle.

But the insurer has the right to terminate the contract if one of the heirs requests that it be transferred in his name.

If the insurer wishes to terminate the contract, it must do so within a period of 3 months from the day your heir has requested the transfer of the contract in his name.

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