How to cancel a French insurance policy for home or car insurance…
Terminating your French car or house insurance policy has meant a requirement to notify your French insurer in writing that you require to cancel at least two months before the end of the policy. The condition required the insured had to put their request in writing by mail, sent by registered post, not email and for many expats this not well-known and often not mentioned obligation has meant failure to comply. This means they have had to continue paying for a policy even if they don’t want to and, unaware of these rules, have taken out a second policy, meaning two insurance policies in play. In extreme circumstances we have even heard of people being blacklisted by French insurance companies even after they have paid up as punishment for non-compliance.
Additionally there was no obligation for insurers to notify consumers of their intent to renew or to send a reminder.
Up until now, if insurers increased premiums, consumers, unless they had complied with the requirement to give notice, found themselves locked into expensive policies for another year.
However a new law dated 17 March 2014 and known as “Loi Hamon” means it should be easier to terminate a French insurance contract.
The French Public Service website states that the new law includes “the right to terminate the automobile property and liability insurance contracts at any time, at the end of the first contract year (the new insurer may terminate the contract instead of the subscriber)”…
The new law requires insurers to give notice that they will renew your policy – however you may find that this does not happen as some insurers appear to be unaware of the requirement or are not complying with it.
Under the new loi Hamon, consumers may terminate their insurance policy at any time after the first anniversary date of the contract, but they must provide evidence to their existing insurer that they have taken out a replacement policy with another insurer. You can ask your new insurer to supply a letter confirming that they are insuring you – or you can send your old insurer a copy of your new policy.
You must put your notice of cancellation in writing and send it by registered post, not email. The insurer will have 30 days from the end of receipt of the letter to cancel the policy.
Find out more from French Property News.