What criteria based insurance company in the cancellation of a contract?

An insurance company can not legally cancel or not renew a contract in one of the six situations we will explain further. Otherwise, the company can do absolutely nothing.

First, the insurer may, under certain rules, terminate the contract according to the annual payments, which remain the most used. Although the insured has a short notice period, the company has to observe a two months' notice before the due date. It must also inform you of its decision by mail and requires a receipt so that things are done in the state of the art.

Then, the insurer may of course punish your soft on payment when previously taken care to share with you a first warning letter. This letter will ask you to regulate your unpaid within the auto insurance company will decide, but that does not exceed the nominal period of thirty days. If you 'have not met the expectations of your insurance company after the lapse of time, the contract may be immediately terminated during the fifteen days from the time that has been circulated previously.

We note in passing that the guarantee of civil liability, it can not be terminated by the insurer in two specific cases. Namely, if the driver had an accident while under the influence of alcohol, and is, by itself, responsible for the said accident. Or if the driver is responsible, regardless of its state, a breach of the rules of the road is legally sanctioned by the one-month suspension of driver's license.

Similarly, it is common for the insurer to submit an amendment or termination guarantees that you had previously granted, as a result of losses incurred. However, this clause does not apply to car insurance to third parties. Note also that it can not cancel the contract if he received payment of an assessment arrived at a term to maturity when the accident occurred. Indeed, Article 113-10 of the Insurance Code clearly states that the insurer has the right, provided that the clause is specified in the contract. The termination may take effect after a period of one month following notification.

Finally, in a misrepresentation on the part of the customer, whether intentional or not, the car insurance company may terminate or cancel your contract after your good or bad faith. This type of action can have serious consequences for the client. Similarly, if the customer increases the level of risk for the company, having for example, several drivers not reporting, it may be asked to pay more and blackmailing him, on pain of termination.