Thanks to the consumer law of March 17, 2014, also referred to as “loi Hamon” cancelling insurance in France has been simplified. It is possible for consumers to cancel their vehicle or house insurance provider at any date on assurances multirisques habitation and responsabilité civile automobile. The rule applies to contracts signed or renewed after January 1, 2015 and in the case of new clients only after the first twelve months have elapsed since the policy was first issued.
The process of cancelling a policy in France is very formal. Before this change you could not cancel at the last minute. Instead the coverage was renewed automatically unless you sent your insurance company a formal letter informing them that you were cancelling your policy. This had to be done between three months and fifteen days before the renewal date and you need to send the letter by registered post (recommandé). If you did not do this you were legally compelled to pay for the following year.
With the new law, after the first year has passed it is no longer necessary to wait until a set date before the anniversary of the contract, the insured can change providers at any time after that first year by mail, telephone or email, and the new insurance company can even act on behalf of the insured on the formalities of cancelling the existing policy to change to the new one, meaning that all the client needs to do is to sign the new policy and let the insurance company sort out the transition. The change takes effect within one month.
For contracts signed before January 1, 2015, it is possible to apply the new rule only after the next automatic tacit renewal has taken place.