The termination of auto insurance with the Hamon law
After one year of insurance, termination at the initiative of the insured is free and possible at any time. This principle results from the Hamon law, the main objective of which was to simplify the change of contract and to stimulate competition between insurers.
Termination will not, under this law, result in any costs or penalties. It suffices for this to respect a certain formalism, namely to notify the insurer by letter. A simple letter is sufficient, but a registered mail with AR is recommended.
The termination will be effective one month after receipt of the letter by the insurer. The postmark will prevail. If the annual premium has been paid, it will be refunded to you on a pro rata basis.
If you keep the vehicle, you will need to find a new auto contract first to make use of the Hamon law. In this case, the new insurer will take care of the termination formalities for you. He will send a cancellation letter to your old insurer.
To do this, send your new insurer all the useful information: your contract number, the date of subscription, etc.
Our model auto insurance termination letter
Coover offers you here a standard auto insurance termination letter in Word format. This version is to be used if you have sold your vehicle, but you can adapt it for other cases of termination.
auto insurance cancellation letter template 1
Some insurers also accept cancellation online, at a branch or by phone.
Can the insurer cancel my auto insurance?
The insured is not the only one who can terminate his contract. The insurer can also terminate auto insurance, after a loss for example.
He can first do so, like the insured, at the end of the contract, in this case giving 2 months' notice. To do this, he must notify the insured by registered letter.
Cancellation is also possible in the event of non-payment of the premium. If applicable:
The insurer requests payment within 10 calendar days of the due date,
Without a response, he puts his client on notice to pay, within 30 days, by registered letter,
Still without return, termination is possible 10 days after the end of this period.
In this case, the premium that would have been paid to the insurer is definitively acquired.
The insurance company can also terminate the contract following false statements or omission on the part of the insured.
Ditto in the event of an aggravation of the risk (if the insured wants to add a new driver, for example). If necessary, the insurer proposes new pricing conditions in order to take this increased risk into account, but it is also free to terminate the cover.
If the contract so provides, the insurer can also terminate the contract in the event of certain claims. This will often be the case if, for example, the insured is responsible for a drunken claim. In this case, the insurer must notify the insured by registered letter with acknowledgment of receipt and the termination will be effective 30 days later.
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