Canceling your car insurance shouldn't be a problem as long as you do it the right way. However, if you do not carry out all the procedures well, nor do you take into account some conditions, your insurer can put obstacles in the way of canceling your policy. In this article we tell you how to cancel car insurance in great detail.
You can also go directly to our car insurance comparator to assess other policies. In just 3 minutes you can access the offer of 30 different insurers. In addition, an expert adviser will guide you throughout the process of canceling the insurance and will speed up all the procedures, if you finally decide to contract with us.
What to keep in mind when canceling car insurance
If you want to cancel your car insurance you have to take into account two aspects such as when you want to cancel it and how you have to do it.
The term to cancel the insurance
The first is: when to do it? The first thing you need to know in this case is that you must communicate your intention to cancel the insurance to the company at least 30 days before the expiration date of the policy. Otherwise, it will be renewed automatically and you will have to wait for the following year to change your insurance. With the inconveniences that this can entail, especially if the price has been raised or you have found another one that covers you better.
The procedure for canceling car insurance
This decision to cancel your car insurance must be notified to the company in writing. From Acierto.com we recommend that you send your insurer the notification either by burofax, telegram or by certified letter.
This is a safe way to do it and the request will be permanently recorded. Although it is true that some insurers allow you to cancel the policy by phone or through their website. In this case, you must demand that the written confirmation be sent to you by email or fax, to avoid possible unforeseen events.
What does the law say about canceling car insurance
All this is included in Article 22 of Law 50/1980 on Insurance Contracts and the amendments incorporated in Law 20/2015, on the organization, supervision and solvency of insurance and reinsurance entities.
It is important to know that car insurance is renewed automatically depending on what is established in each contract. In this way, and as established by the regulations: all insurance policies are annual and the duration of the "contract will be determined in the policy, which may not set a term of more than ten years." Thus, "it may be established that it be extended one or more times for a period not exceeding one year each time".
Regardless of the mode of payment (in cash or installments), the desire to cancel the car insurance is subject to the regulations established by this law. Thus, "the parties may oppose the extension of the contract by means of a written notification to the other party, made at least one month before the conclusion of the current insurance period when whoever opposes the extension is the policyholder, and two months when he is the insurer".
How to cancel car insurance early
It may be the case that we want to cancel car insurance before the expiration date of our policy, that is, without having to wait for it to end. In general, there are three reasons why you can cancel your car insurance before that date arrives:
If the insurer modifies the contract
If the insurer modifies the contract that was signed at first, you can cancel the car insurance in advance. That is, if the insurer makes changes to the price of the insurance or modifies or eliminates any of the initially included coverages.
If your company makes any changes to the contract with which you do not agree, it is not necessary to notify your decision to unsubscribe 30 days in advance. The insurer is obliged to notify any type of change in your contract. At the time it does, you have up to 15 days from the time you receive the notification to accept or reject the new contract.
The driver reduces the risk
That as a driver the risk is reduced, is another situation in which it is possible to cancel the car insurance in advance. We explain ourselves: each driver pays a different amount depending on the risk involved in driving. For example, a novice driver will pay more for car insurance than someone with more experience behind the wheel.
Therefore, if there have been circumstances that have reduced the risk you have as a driver, the premium to be paid will be lower. You must notify your company of this and it will have to change the price of your insurance, reducing it if necessary.
In addition, the insurer must pay the difference between the amount paid and the amount that you would have had to pay from the moment the risk reduction was notified. If the insurer ignores your request and when renewing the policy the price is not lower, you can cancel it within 15 days.
If you take out car insurance online
If you take out car insurance over the Internet, you have a period of 14 calendar days to cancel it. You must notify your insurer by certified letter or other support that records that the cancellation has been requested. The insurance company, as long as it is within the established 14-day period, may not impose any financial penalty.
In general, if none of these conditions are met and you want to cancel your policy before it expires, the consequences will depend on the company with which you have contracted your policy.
If you are dissatisfied with the service provided to the point of wanting to cancel your policy and assume those consequences, at Acierto.com we help you improve the conditions of your insurance.
Because by making a comparison in our car insurance comparator you will be able to consult the policies of 30 different insurers and compare both prices and coverage included, advantages of the company compared to the competition, the assessment of our experts... And thanks to the free advice that we offer you , this time you will be right with your choice.