Today we talk about how to change insurance companies when a policy expires. Whether it is a health insurance, a car insurance o household insurance, Let's see what steps to take to do it correctly.
The Insurance Contract Act on the return of the receipt
Months ago, we already launched an article in which we spoke about the ways to cancel insurance.
As we have seen, Article 22.2 of the law states:
“... may object to the extension of the contract by giving written notice to the other party at least one month before the end of the current insurance period ...”.”
In other words, that 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 left, the better, but if there is less than a month left, the insurer will claim that the cancellation is out of time and will be able to demand 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 reduces coverage without having asked for it (e.g.: they want to put an excess on the All Risks insurance).
- Or because you increases the price of the policy a 20%, e.g.
At that point, the client, the insured, can justify non-renewal The insurance company is “inviting” you to leave the policy, even if it is out of time, as it is the insurance company that is "inviting" you to leave.
The register of defaulters and the return of insurance bills
It is very important to us that the customer knows, that if you return the receipt without cancelling the policy on time you risk:
- Have the insurance company claim the renewal fee from you (by means of an order for payment procedure).
- That, even if you do not claim it, the policyholder's DNI may appear in the debt collection files.
This last point is very dangerous, since in the future you may want to ask for a loan or contract something, and if you appear in one of these registers there is a risk that you will not be granted it for that reason. Large companies buy these files and with the cross-referencing of data that exists today, we believe that this is a high risk.
If you have any questions and want us to help you, contact us and we will be happy to do so. From PIB Group Iberia and Investment We try to offer a friendly service to resolve these issues as best as possible.
