What happens if I want to cancel insurance in the middle of the year

Many people wonder " what happens if I cancel insurance in the middle of the year" . Especially in the cases of motorcycle insurance or car insurance. The main question is usually if the companies are going to return the amount of the proportional part that remains to be "spent" until the end of the contracted term.

A few days ago we told you what to do to change your insurance company.

And there we explained the legal obligation to what to do to cancel insurancenotify the company of the change two months in advance. And the company's obligation to notify the user of the next expiration and renewal of the insurance, also with those two months.

It should be clear that what is contracted when signing an insurance policy, of any branch, is an annual insurance contract. This means that once the policy takes effect the contract does not expire until after the year. And this is independent of the form of payment that is established in each case.

There are policies that are paid annually in a single payment; and there are insurers and insurance brokerages that allow payment in installments: monthly, quarterly, semi-annually… In any case, the insurance contract is for a period of one year.

If in the middle of the year, or before the policy expires, I decide to cancel my insurance, the contract will continue in force until the end of the annual term signed. So the vehicle will continue to be insured with that company.


In the event of cancellation by the client, the company has no obligation to return the amount proportional to the months left to "consume".

In case the cancellation is due to a change of company, follow the instructions we gave you on what to do to change your insurance company.

The most common cases to cancel insurance are usually:

• If the cause of the cancellation is due to the purchase of a new vehicle,  the companies do transfer the insurance from one vehicle to another within the same company, updating the characteristics and coverage of the new vehicle. This, logically, can alter the amount of the premium, both for more and for less, depending on the case.

• If the cancellation occurs due to the sale or cancellation of the vehicle, there are companies that consider the possibility of freezing the policy for a period of time in case the purchase of another vehicle occurs after a period of time and the insurance of the old vehicle is transferred.
What will not happen in any case is that they return the amount of the period not consumed. And in case of opting for the formula of returning the receipts, the company can claim the pending amount from us. How far they are willing to go will depend on many factors, such as the outstanding amount or the importance of the customer.
In any case, the most obvious advice is to try to sell the vehicle or buy a new one, coinciding as much as possible with the expiration periods of the insurance in force. In this way we will optimize the coverage time.

Comments

Post a Comment

Popular posts from this blog

How to succeed in winning over your competitors

Image
In a highly  competitive  market , it is sometimes difficult to break into companies that have been established longer than you or have more resources.  We then tend to lower the prices of our products or services in the hope of attracting potential customers.  Obviously, your prices communicate an idea of ​​what you are, of your expertise, of how you judge your own services.  Difficult to appear as an expert if you are half the price of your  competition .  Quality pays for itself and everyone is aware of this, as are your customers! Price is far from the only lever to position yourself and win sales.  Lowering prices, when they are well valued, of course, is never the answer.  This will only send a negative message about your business.  So, you will say to me, how to position yourself against the giants of your sector, how to position yourself in a congested sector? Before embarking on major communication actions, ask yourself, calmly, and take stock.  Come back if necessary to your
Read more

The advantages of taking out insurance

Image
Insurance often evokes feelings of financial insecurity.  Some people find it a way to steal money from others and others do not know what it is for.  However, by signing an  insurance contract , we are putting much of our money in good hands.  This allows, over the long term, to  build up savings  and also to  insure against possible risks , depending on the type of insurance chosen: personal insurance, property or claims insurance, and insurance activity. Taking out insurance also has  advantages , still little known to the public, in terms of security, taxation, and profitability.  But rest assured, we will explain it to you. Real profitability How can insurance be profitable?  Insurance, in practice, is a contract by which the insurer undertakes to pay a certain sum to the insured on the occurrence of risk by means of the payment of a premium or premium periodically.  There are several kinds of insurance, but all allow the insured to benefit from  certain profitability , from an  e
Read more