Both the insurer and the insured have the right to terminate an insurance contract under certain conditions and in compliance with the rules set by the Insurance Code. This is one of the unpleasant surprises that can happen to you, even in the absence of a responsible claim. Several reasons can motivate this decision: non-payment of contributions, an increased risk, risky driving causing a responsible accident or even a false declaration.
Can the insurer cancel my contract? Yes, in some cases
Termination at the annual expiry of your contract
If your contract reaches its annual expiry date, your insurer has the right to terminate it without having to justify itself. He must then inform you of his decision at least 2 months before the due date, by registered letter.
Termination for non-payment of contributions
The insurer can terminate the contract when payment of contributions is not honored. If you do not pay within 10 calendar days (corresponds to all calendar days of the calendar year, from January 1 to December 31 including public or non-working holidays, editor’s note).
Depending on the due date, the insurer may send you a reminder. To do this, he will send you a registered formal notice for payment of the premium within 30 calendar days. After this period, if the situation is not resolved, the insurer may terminate the contract. The premium or portion of the premium corresponding to the coverage period remains due to the insurer, even if the contract has been terminated.
Termination for misrepresentation
In the event of a false declaration on your part, noted by the insurer, your contract risks termination. Here again, a registered letter will be sent to you. Termination occurs 10 calendar days later. Contributions for uninsured periods will be refunded to you.
Termination for worsening risk
If a modification risks having repercussions on your contract, the insurer may consider that the latter constitutes an aggravation of risk, compared to your initial situation. Within 15 calendar days, by registered letter or by electronic registered delivery, it may notify you of its refusal to cover this new risk, or of a proposal to increase your contribution.
If the insurer offers you a price increase and you refuse it, the contract will be terminated 30 calendar days later. Unused contributions will be refunded to you in both cases. On the other hand, if after being informed of a possible worsening of the risk, the insurer continued to collect premiums or agreed to compensate a loss, it will no longer be able to terminate the contract.
Termination after a disaster
Following certain losses, and if this is provided for in the contract, the insurer can terminate it. First of all, these are incidents during which you were under the influence of alcohol or drugs. Also covered are violations of the Highway Code leading to a judicial or administrative decision to suspend the driving license for at least one month, or a decision to cancel the license. Once notified by registered letter, termination takes place 30 calendar days After.
Are appeals possible?
If the motorist wishes to contest the decision of his insurer, he has the possibility of appealing to a mediator. Independent, the latter will examine the situation in order to find an amicable solution for the insurer and the insured. If this approach produces nothing, the motorist can decide to take the dispute to court. Unfortunately, the chances of winning in court are very slim. Indeed, your insurer has the right to terminate your car insurance contract according to the rules of time and form laid down by article L. 113-3 of the Insurance Code. In all cases, the insured will be required to take out new car insurance if he wants to be able to use his vehicle during the procedure.
Source :
“Car insurance (motor vehicle): termination of the contract“- Public service