How to cancel your insurance contracts?

How to cancel your insurance contracts?

How to terminate an insurance contract and when? Do I have to wait until the end of the contract? How to make a cancellation request to the insurer? What are the terms? Assurland explains everything through this guide.

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When can an insurance contract be terminated?

Have you taken out an auto, motorcycle, home, life, death, credit insurance policy, for your health or that of your pet? Do you want to terminate it to change the contract? Depending on the situation in which you find yourself, the terms of termination differ. It is therefore possible for you to cancel your insurance :

  • at any time thanks to the Hamon law for auto, motorcycle, home insurance (so-called mandatory) and affinity insurance (extended warranty): your contract must however be at least one year old;
  • upon receipt of your notice of expiry thanks to the Châtel law : this law obliges the insurer to inform you of your right to cancellation. If, in the notice of expiry, it does not mention your possibility of termination, or if the notice was sent less than 15 days before the end of the termination period, then you have an additional 20 days to terminate;
  • at the end of your contract : you must respect the two-month notice period and send a registered letter with acknowledgment of receipt to your insurer;
  • in the event of a change of situationand only if this leads to a price increase (moving, marriage, divorce, professional situation, etc.): you will then have to send a registered letter with acknowledgment of receipt within 3 months of the change, and the termination will take effect 30 days after receiving the letter from your insurer;
  • and in the event of an increase in the insurance premium (excluding tax-related increases): be careful if there was a revision clause in the contract, it must not have been respected in order to be able to terminate.

Be aware that many contracts include a tacit renewal clause. It is therefore a question of not missing the notice of expiry and of respecting the conditions of termination. The duration of the insurance is defined by the conditions of the contract or insurance policy.

insurance cancellation letter template

To terminate your contract, you have several options:

  • a registered mail with acknowledgment of receipt (LRAR) ;
  • an e-mail or any other durable medium;
  • a statement to the registered office or to the representative of the insurer;
  • an extrajudicial act;
  • any other means provided for in the contract.

To facilitate your procedures, do not hesitate to download an insurance termination letter template.

The different laws that facilitate the termination of insurance

How to terminate an insurance contract with the Hamon law?

With the Hamon law, terminating your insurance is possible at any time from one year of subscription. For that it is necessary :

  • find a new insurer before breaking your current contract;
  • subscribe to a new contract: the new company will itself take care of terminating the insurance with the former insurer.

It will then take about a month for the old insurance contract to be terminated and the new one to begin. However, the Hamon law only concerns compulsory insurance (home, car) and affinity insurance (mobile phone insurance, for example). As for the Hamon law and borrower insurance, it allows the insured to change insurance within 12 months of subscription.

Terminate your insurance contract with the Châtel law

If the insurer does not send notice of expiry at least 15 days before the deadline for the notice (as evidenced by the postmark), the insured then has 20 days from the sending of the notice to request that his insurance be terminated. If the insurer does not send the notice of expiry or sends it after the expiry date, the insured can then terminate at any time.

The Chatel law does not apply to group contracts and life insurance. It does not concern professionals, nor insurance for the professional activities of individuals.

Cancel your mutual health insurance “at any time” after one year of commitment

Infra-annual or “at any time” termination of mutual health insurance contracts came into effect on December 1, 2020. This provision reproduces for complementary health what already exists for car, motorcycle and home insurance since 2015 and the Hamon law.

It is now possible to terminate your health contract at any time after your first year of subscription, free of charge nor justification. This possibility applies to all contracts, including current ones, covering health cost guarantees. However, infra-annual termination is not valid for health contracts with more extensive guarantees (invalidity, incapacity, nuptiality-birth rate, etc.).

You can do this yourself, by sending a notice of termination to your mutual. It will take effect within one month after the confirmation received from the insurer. But your health insurance can also carry out this cancellation procedure for you!

The Bourquin law: termination of borrower insurance

Thanks to the Bourquin law, terminating your home loan insurance has been made easier. For that it is necessary :

  • give two months’ notice to terminate the insurance;
  • present your lender (often a bank) with a new insurance contract with guarantees at least equal to or greater than those of the current contract.

If you wish to terminate a group insurance contract, you must send them an insurance termination letter by registered mail with acknowledgment of receipt or online. On the other hand, if you wish to cancel an insurance taken out in delegation, you will have to make a request for substitution of insurance to your lending bank.

The ASAP law: a reinforced duty of information for borrowers

The provisions of the ASAP law (acceleration and simplification of public action) for borrower insurance were to come into force in March 2021including for contracts already in progress. But they were finally challenged by the Constitutional Council.

An amendment to the ASAP law provided for extending the Bourquin law, by allowing you to terminate your loan insurance at any time, that is to say without having to wait for your anniversary date, but this provision was ultimately not retained.

Secondly, the ASAP law wanted to strengthen the bank’s duty to inform the borrower, and specify the conditions of termination as already provided for by the Bourquin law. But, ultimately, the Constitutional Council censured the following two measures :

  • The Bourquin law did not define precisely enough what the “annual expiry date of the contract” corresponded to. The borrower was to be able to choose the date that suited him to terminate: either the anniversary date of the loan offer, or “any other expiry date provided for in the contract”.
  • Insurers should have the obligation to inform future purchasers of their right to annual termination, but also on: the different dates on which it can take place, the period of notice (two months before the termination date), and theobligation of the equivalence of guarantees.

Cancellation of the contract by the insurer

For its part, for certain contracts such as auto, motorcycle or even home insurance contracts, the insurer also has the right to terminate your insurance contract without necessarily justifying its decision. He must, however, give 2 months notice before the due date.

He may terminate the contract for the following reasons:

  • due ;
  • non-payment of dues;
  • increased risk;
  • after a disaster;
  • following an omission or misrepresentation;
  • following a change of situation, death of the insured, sale or loss of the insured property.

Changing insurance: how to find a new contract?

You wish change insurance contract but you don’t know which one to choose? Are you looking for the best price and the best guarantees? Assurland.com is there to help you: thanks to our online insurance comparator, you will find the insurance you need in a few minutes. Once this is done, all you have to do is cancel your current insurance.

Change of situation: how to terminate your insurance contract?

To find out more about the terms and conditions for canceling insurance, click on the box that concerns your case (moving, change of profession, etc.). You will then discover all the information needed to terminate your contract.

How to cancel an insurance contract in progress?

Terminating a current insurance contract is possible if: the insurer does not comply with the Chatel law, in the event of a refusal to reduce the premium, increase the premium, change of situation, sale or transfer of the property covered (car, accommodation, etc.).

How to cancel car insurance?

Canceling car insurance is possible thanks to the first expiry of the contract by respecting the notice period, or at any time from one year of subscription, or in the event of a change of situation.

Can I cancel my auto insurance at any time?

It is possible to terminate your car insurance at any time from one year of subscription or in the event of a change of situation.

How to cancel home insurance?

Termination of home insurance can be made on the first expiry date of the contract, respecting the notice period, or at any time from one year of subscription, or in the event of a change of situation.

Insurance termination FAQ

  • How do I send a letter to cancel insurance?

    To write a insurance cancellation letteryou can use one of the templates available on the Internet, or our template available at the top of the page.

  • Canceling insurance requires compliance with a period of notice. It is two months for a contract renewed on an annual basis, one month for contracts that can be terminated under the Hamon law and three months in the event of a change of situation.

  • Insurance after being terminated can be complex. You can first compare insurance to find a contract that suits your needs. If no insurer accepts your application, you can, for compulsory insurance, go to the BCT (Central Pricing Office) after having been refused twice. The BCT will allow you to purchase the insurance.

  • The Chatel law requires insurers to inform policyholders with the notice of annual expiry of the deadline by which they can terminate their contract.

  • It is possible to terminate insurance during the year after one year of subscription, free of charge and without reason. However, this does not apply to life insurance, pension contracts and mortgage loan insurance.

  • It is possible to terminate insurance during the year after one year of subscription, free of charge and without reason. However, this does not apply to life insurance, pension contracts and mortgage loan insurance.

  • For terminate a contract by tacit agreement, all you have to do is inform the insurer when you receive the letter indicating your possibility of canceling. If the insurer forgets to send you this letter, you have additional time to cancel.

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