Today we talk about how to change insurance companies when a policy expires. Whether it is health insurance, car insurance or home insurance, let’s see what steps to take to do it correctly.
The Insurance Contract Law regarding the return of the receipt
Months ago, we already launched an article in which we talked about the ways to cancel an insurance policy.
As we saw, Article 22.2 of the law states:
“… they may oppose the extension of the contract by written notice to the other party, given at least one month before the end of the current insurance period…”
In other words, the Taker of the policy must communicate the cancellation At least one month in advance of the moment in which the insurance is renewed. If it can be with a few days more of margin, the better, but if there is less than a month left, the insurer will claim that the cancellation is out of time and may demand the payment of the renewal premium.
Exceptions to the rule for cancelling an insurance policy
Insurance is a contract, and as such if one of the parties, in this case the insurance company, substantially modifies the conditions of the contract:
- Either because it reduces the coverages without having asked for it (e.g.: they want to put an excess in the All Risks)
- Or because it increases the price of the policy by 20%, e.g.
At that moment, the client, the insured, can justify the non-renewal of the policy even if it is out of time; since it is the insurance company who is “inviting” you to leave.
The registry of delinquent accounts and the return of insurance bills
It is very important for us that the client knows that if he/she returns the receipt without having cancelled the policy on time, he/she risks the following:
- Have the insurance company claim the amount of the renewal (through an order for payment procedure).
- That, even if you do not claim it, the policyholder’s DNI may appear in the delinquent files.
This last point is very dangerous, because tomorrow you may want to ask for a loan or want to hire something, and if you appear in one of these records there is a risk that you will not be granted for that reason. Large companies buy these files and with the cross-referencing of data existing today, we believe that it is assuming a high risk.
If you have any questions and want us to help you, contact us and we will be happy to help you. From PIB Group Iberia e Inversión we try to offer a close treatment to solve these questions as best as possible.
