Several reasons can lead us to cancel car insurance. Among the main ones: having to sell or transfer the car, wanting to change the insurance company if we find better conditions -or due to changes in the policy without prior notice-, having to cancel it, and a long etcetera.
Whatever the reason, to cancel car insurance, we must bear in mind that the process entails a procedure that we must follow in order not to waste time, avoid headaches and even possible fines in the case of so-called zombie cars.
Cancel car insurance: the key is the deadlines
We must remember that even though there are already car insurances that allow us to pay monthly, quarterly, semi-annually, or annually, the renewal of our policy contract will continue to occur automatically each year, from the date of contracting.
According to what is established by the Insurance Contract Law, if as policyholders, we want to oppose the extension of the contract, we must do so using written notification to the insurance company with a period of at least one month in advance of the current insurance period for avoiding the aforementioned automatic extension of the insurance for another year.
If, on the other hand, it is the insurance company that wants to oppose the extension or modify its conditions, it must notify the insured (policyholder) at least two months before the date on which the contract would end.
How to notify
As for unsubscribing from car insurance “by written notice” to the insurer as the law says, it is an important aspect of the procedure.
Many companies (and more as a result of the pandemic caused by COVID-19) already allow us to record our interest in terminating the contract in writing by email or message on their website, among other options.
In this case, it is best to verify that we receive confirmation that the message has been received by the company. We can also request it by phone, although we must avoid having confirmation only through this channel.
Other options to communicate our intention to unsubscribe are to send a certified letter or a burofax to the insurance company, to have the acknowledgment of receipt.
In our written communication, the following must be stated: the policy number and the data of the vehicle (registration and model) and the data of the policyholder (name, surnames, DNI), we will put the date for the record, and we will sign the communication.
Errors to avoid when we want to cancel the insurance
Complying with the term of one month in advance of the end date of the contract to notify the intention to cancel the car insurance, and leave a record of it in writing, the company could not object to canceling us.
We may forget or miss the end date of our policy (which we can check on any receipt in addition to the contract) or that due to any unforeseen event we cannot meet the notice period.
In these cases, we could try to change the conditions of our policy with the company with which we have the contract, or even negotiate a change in the insurance until we can cancel it if what we are looking for are more advantageous or economic conditions.
Returning the insurance receipts to cancel it is a risk, since, in addition to being able to claim them for breach of contract, the insurance company could start a legal process and include us in a list of defaulters.
What if the insurance company modifies the conditions of the contract without prior notice?
In this case, we would have the full right to cancel the insurance, even if we are no longer on time.
As happens when you want to cancel it, to change the conditions of our policy, the insurance company must notify the policyholder of said changes in writing at least two months before its expiration.
