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Car insurance (motor vehicle): termination of contract

Verified 07 October 2020 - Directorate for Legal and Administrative Information (Prime Minister)

The auto insurance contract is intended to be renewed automatically at each annual maturity. Nevertheless, the law provides for several possibilities for termination. The rules applicable are not the same for the insured and for the insurer.

Termination on the initiative of the insured

You can terminate your auto insurance contract without penalty at several points in the life of the contract.

You can avoid automatic renewal of your contract at the first annual deadline, without having to provide a reason.

To do this, you must send your insurer a letter of termination 2 months before the due date, by paper or electronic recommended.

Terminate his insurance contract when it expires

Since car insurance is mandatory, your insurer must ensure that you will purchase a new contract from another insurer. He will therefore ask you to provide him with proof of the new contract.

To avoid having to complete this formality, you can ask your new insurer to send your termination letter to your former insurer.

Please respect the deadline for sending your letter of cancelation, otherwise the contract may be renewed and you will have to pay the fee for the coming year.

To help you not miss this deadline, the insurer has the obligation to remind you of your right to cancel at the same time that it sends you the notice of annual premium or premium maturity.

If the insurer sends you this reminder less than 15 calendar days before the deadline by which you can request the cancelation, you can then terminate the contract within 20 days of the sending.

If no reminder has been sent to you, you can terminate your contract at any time, after the due date, and without penalty. You must send your insurer a termination letter by recommended paper or electronic.

The cancelation shall take effect on the day following the date indicated on the postmark.

If you ask statement of information, the insurer must send it to you within 15 days of the request.

You can terminate your contract in certain circumstances, even before the first deadline.

Disappearance of insured risk

Certain changes that affect your personal situation may justify a termination of the insurance contract, when they result in the disappearance of the risk covered by the contract. For example:

  • Change of domicile
  • Change in marital status
  • Change in matrimonial regime
  • Change of profession
  • Departure from professional retirement or permanent cessation of professional activity

You may invoke a change in your personal circumstances to request termination of the contract, but your insurer may also use that reason to justify termination.

Increased risk

If your situation has changed, and this change results in a heightened risk, you must inform your insurer. This information must be communicated to the Commission within calendar daysby registered letter or by electronic registered mail. The insurer will offer you new insurance terms. If you do not accept them, the contract will be terminated.

Transmission of the vehicle to a third party

If you sell or give your vehicle to a third party, the contract is suspended the day after this transmission, at midnight. It must be terminated with a notice of 10 calendar days..

Terminate his insurance following the sale of his vehicle

Amendment of contract terms

If your insurer informs you of an increase in your insurance rate, you can ask to cancel your contract for that reason.

You can terminate your contract at any time after the end of a year of insurance, without having to justify yourself and without taking into account the annual maturity. The letter of termination must be sent to the insurer by regular mail (paper or electronic). The termination of the contract will take effect 1 month after receipt of your request for termination by the insurer. You will be refunded the portion of the premium corresponding to the remaining contract period.

Warning  

review the impact that termination will have on your bonus/malus ratio, because the bonus only increases after one year complete insurance without loss. The change of insurance makes you leave at the beginning of a year of insurance.

The vehicle will continue to operate after termination

If the vehicle will continue to be put into service, even occasionally, you are obliged to insure it. In this case, you cannot complete the cancelation formality yourself. You must ask the new insurance company to complete the process on your behalf. You must indicate to him, by mail or by mail, your willingness to subscribe to a contract instead of the one you had with the former insurer. You must also tell him the elements of your old contract (contract number, insured number, your contact details and those of the insurer).

The vehicle will no longer run after cancelation

You can complete the cancelation formality yourself if the vehicle will no longer be put into service after the cancelation, and you no longer have the obligation to insure it.

Putting the vehicle into service is to put it on the public highway, regardless of whether it is actually used.

In this case, you can send the termination letter to the insurer by regular mail (paper or electronic).

However, if you wish to have proof of receipt, you must send a registered letter or an electronic registered mail. You must also inform the insurer that you will no longer use the vehicle.

Termination by the insurer

Your insurer also has the option to terminate the contract. The rules applicable to termination vary depending on the time and/or reason for termination.

At each annual maturity, the insurer can terminate your contract without having to justify itself.

They must notify you 2 months before the due date, by registered letter.

Within 10 calendar days depending on the due date, if you have not paid your contribution, the insurer can revive you. He's addressing you notice of settlement the premium within 30 calendar days by registered letter.

If you do not regulate your situation, the insurer can terminate your contract 10 calendar days after the end of this period.

The unpaid premium or fraction of premium remains due to the insurer, even if the contract has been terminated.

If the insurer finds a false statement or omission on your part, it may terminate your contract. But only if you are acting in bad faith and the false statement or omission has changed the purpose of the risk or the insurer's perception of it.

They must send you, by registered letter, a notice of termination, indicating the false statement or omission on which their decision is based. Termination occurs 10 calendar days after.

Contributions for uninsured periods will be reimbursed.

Your insurer may consider certain changes in your personal life to result in increased risk insured. For example, if a new person drives your vehicle.

The insurer can then decide, within 10 calendar days upon becoming aware of this amendment, to:

  • refuse to cover the new risk (the termination will be effective 10 calendar days after its notification)
  • or to propose an increase in your contribution (the refusal will lead to the termination of the contract within 30 calendar days)

In both cases, unused contributions will be refunded.

Please note

if the insurer has continued to collect premiums or has compensated a claim after you have informed the insurer of new circumstances, the insurer may no longer terminate the contract on that ground.

The insurer may terminate the contract following a claim and for this reason only if this possibility has been provided for in the contract. This is usually the case:

  • if you have committed an accident while intoxicated or under the influence of a narcotic
  • and/or if you have been guilty of an offense involving a suspension of the driver's license for at least 1 month, or the cancelation of the license.

The insurer must notify you of this termination by registered letter. Termination occurs 30 calendar days after this notification.

The insurer must then refund to you the portion of the contribution that corresponds to the period remaining to the next maturity.

FYI  

if the insurer has accepted payment of a premium or fraction of an insurance premium 30 calendar days after being informed of the claim, the insurer forfeits the right to terminate the claim.