The insured may terminate an insurance contract provided that he/she complies with the rules set out in the Insurance Code.
Cancellation of an insurance contract on the expiry date
Annual termination of contracts
The law provides for the insured, as well as for the insurer, the possibility to terminate the insurance contract every year.
Within the framework of the annual cancellation, the insured must notify the insurer at least two months before the expiry date. If this deadline is not met, the insurance contract is not cancelled. The premium for the coming year remains due.
To notify the cancellation of his contract to the insurer, the insured has several means provided by law:
- Either by letter, email or any other durable medium;
- Either by declaration made at the head office or at the representative of the insurer;
- Or by extrajudicial act;
- Or, when the insurer offers the conclusion of the contract by a remote communication method, by the same method of communication;
- Or by any other means provided for in the contract.
In all cases, the insurer confirms receipt of the cancellation request in writing
For contracts other than those for private individuals (multi-risk business, business interruption, etc.), the contract may exclude this annual cancellation option.
The annual cancellation option on the expiry date does not apply to life insurance policies.
Opposition to the tacit renewal of the insurance contract
The opposition to the tacit renewal of the insurance contract concerns individual insurance contracts covering individuals outside their professional activity. It does not apply to life insurance.
An insurance contract concluded for a fixed term ends at the end of the term.
However, most contracts include a tacit renewal clause that allows for automatic renewal for one year unless the insured objects.
To facilitate this opposition, the insurer must remind the insured of the deadline for terminating the insurance contract in the annual renewal notice.
It must also remind the insured that he or she has twenty days from the date the notice of expiry is sent to request the non-renewal of the contract.
If he/she is not informed, the insured may terminate the contract, without penalty, at any time after the renewal date of the contract, by letter, email, or by any other means stipulated.
The cancellation takes effect the day after the date of the postmark or the date of notification, for these other methods of cancellation.
Cancellation of an insurance contract after the expiry date
Cancellation of insurance contracts at any time
Car insurance, multi-risk home insurance, supplementary health insurance and so-called affinity insurance (complementary to a good or a service, for example cell phone insurance) can be cancelled by the insured at any time after their first anniversary.
Cancellation by the insured of his/her insurance contract takes effect one month after the insurer receives the request, and entitles the insured to a refund of the portion of the premium not covered following the cancellation.
In the case of compulsory car and home insurance (for tenants) as well as in the case of supplementary health insurance contracts, this cancellation request is made by the new insurer on behalf of the insured. The new insurer will have to ensure the continuity of the insured’s coverage between the old and the new insurance.
Other cases
The insured, like the insurer, can terminate the insurance contract if certain events occur.
Moving, marriage, retirement, change of profession…
The insured may terminate the contract by letter, email or any other method provided for by the Insurance Code, within three months of the date of the event, provided that the change in the situation has a direct impact on the risk covered.
The cancellation takes effect one month after the insurer receives the request. The portion of the premium corresponding to the period during which the risk is no longer covered is reimbursed.
Sale, purchase, inheritance
The insurance contract is automatically transferred to the new owner (purchaser or heir) except in the case of sale, assignment or donation of a vehicle or boat. The new owner may cancel the insurance contract from the time of transfer of ownership until the end of the insurance period.
The insured may request cancellation by letter, email, or in any other manner stipulated by the Insurance Code.
The cancellation takes effect as soon as it is brought to the attention of the insurer.
The insurer must reimburse the portion of the premium corresponding to the period between the effective date of the cancellation and the initially scheduled due date.
Sale, transfer or donation of a vehicle or pleasure boat
The insurance contract is suspended from the day after the sale of the car or boat at zero hour. It may be terminated with ten days’ notice by both the insured and the insurer.
If the contract is not reinstated or terminated by the insurer or the insured, the insurance contract is automatically terminated after a period of six months from the date of sale, transfer or donation.
The insured must inform the insurer, by letter, email, or in any other manner provided for by the Insurance Code, of the date of the sale, assignment or donation.
total loss of the insured property
In the event of total loss of the insured property resulting from an event not covered by the contract, the insurance automatically terminates. The insurer must then reimburse the part of the premium collected for the remaining period.
Termination by the insurer after a claim
When this possibility is mentioned in the cancellation chapter of the general terms and conditions, the insurer can cancel an insurance contract after a claim. In this case, if the insured has taken out other contracts with the same company, he/she can request their termination within one month of the insurer’s notification of termination. These contracts will end one month after the request.
The insurer is obliged to refund the part of the premium corresponding to the period from the effective date of the cancellation to the initially scheduled expiry date.