Every land motor vehicle, whether driven or left in the garage, must have auto insurance. But what deadlines should be respected when acquiring a new vehicle?
Legal obligation for motorized land vehicles (VMT)
Having car insurance is a legal obligation for any motorized land vehicle, whether it is a car or a 2 or 3-wheeler. Stationary vehicles that are no longer in circulation must also be insured, at least by third-party insurance, providing civil liability cover. The insured can also choose to extend the coverage by subscribing to a more complete contract such as intermediate insurance or all-risk insurance, or even to subscribe to additional guarantees.
Make sure as soon as the deed of sale sign
When you buy a vehicle, you must have insurance as soon as the deed of sale is signed and you take possession of the vehicle. But how do you get insurance on the return trip from the dealer or the private individual?
Three solutions are available to you:
- Benefit from the seller’s insurance: the seller has normally sent a cancellation letter to his insurer, which must take effect from the date on which he intended to sell the vehicle to you. The seller’s insurance contract ends on the day of the sale of the car, at midnight.
- Take out temporary insurance: this can last from 1 to 90 days.
- Take out conventional insurance in advance. You can choose insurance from your insurer or the broker of your choice. You will obtain, in 5 minutes, and after payment of a deposit, provisional insurance (valid for 1 month maximum), then 10 days later, after sending the supporting documents, a definitive insurance certificate.
By going through online car insurance, you considerably reduce the subscription time. In addition, thanks to our car insurance comparator, you can compare the best insurance on the market at a glance. Time-saving guaranteed!
Withdrawal of car insurance: what deadlines?
The first step to benefit from auto insurance is to canvass an insurer and ask them for a contract proposal. But once the process is well advanced, can we go back?
In which cases can you withdraw your auto insurance?
When it comes to signing an auto insurance contract, there is no specific deadline. The insured applies for a contract with the insurance company. The latter will study the request and send a proposal to its client. The latter, if he accepts the terms of coverage and the cost of the premium, signs the contract.
If you can indeed ask to retract, you must then follow a very specific procedure. You must send within 14 days a registered letter with acknowledgment of receipt attesting to your desire not to follow up on the contract. No need to justify your request. You must also pay the insurer the number of days insured on a pro-rata basis (corresponding to the reflection period).
Thereafter, the insurance company has 30 days after the termination of the insurance contract to reimburse you. After these 30 days, legal interest applies.
What are the notice periods for auto insurance?
Canceling your car insurance contract implies that you have already found your next insurance so that you don’t drive without cover for a while.
Cancellation of car insurance
As part of an auto insurance contract, the insurer must notify you of the end date of your contract. He must do this via a notice of expiry sent by registered mail with acknowledgment of receipt.
The Chatel law, which came into force in January 2008, requires the insurance company to notify you of the maximum termination date at the same time as sending the notice of expiry. This provision makes it possible to avoid abuses by insurers, who sometimes proceeded to a tacit renewal of the auto insurance contract without notifying their customers.
How long does it take to cancel car insurance?
Entering into force on January 1, 2015, the Hamon law has made it possible to strengthen the rights of consumers by allowing them to terminate an insurance contract at any time after the first year of subscription. From the end of the first year of exercise of the contract, and even if the contract in question is tacitly renewed, the insured may terminate free of charge, without reason, and without the need to comply with any notice period.
Several scenarios arise:
- In the event of a change in your personal or professional situation: you must report it by registered letter with acknowledgment of receipt. If your change of situation involves an increase in risk, you have 15 days to declare it and the insurer may propose an increase in the premium. If you do not respond to this proposal, the insurer may terminate the contract after 1 month. In the event of a reduction in risk, which you must declare within 3 months, you can request a reduction in your contributions, implying effective termination within 1 month if the insurer refuses.
- At the expiry of the contract: the insurer must send you a notice of expiry 1 or 2 months before the deadline for the end of the contract to warn you of the imminent possibility of termination. If you do not receive this notice of expiry, you can terminate free of charge and at any time after the end date of the contract, without notice. Otherwise, you have 15 days before the deadline to notify your wish to terminate by registered letter with acknowledgment of receipt. If the expiry notice reaches you too late (less than 15 days before the expiry date), you will then have 20 days to cancel your car insurance.